A Canadian bitcoin company has been exonerated of allegations that the company misrepresented itself and was soliciting investors without having proper clearances from concerned regulatory bodies. The company, Dominion Bitcoin Mining was accused of attempts to sell securities without proper registration. The accusation was made by Canadian Financial and Consumer Affairs Authority’s (FCAA) investigator, Harvey White.
Based on the allegations, the Government of Saskatchewan and FCAA called for an investigation in the Month of May last year. The investigation was based upon the evidence gathered by Harvey White in the previous month. The evidence was in the form of screen grabs from Dominion Bitcoin Mining’s website which allegedly showed that the company had provided information about its securities offering which mentioned that those who purchase securities will stand to gain equal part in all bitcoin Dominion mines and all the bitcoins mined will not be used by Dominion without shareholders’ consent.
Dominion Bitcoin Mining argued the screen grabs in possession of Harvey White were contents from a website which was still under development and they were encrypted. They also challenged the way Harvey White might have accessed the contents. Dominion Bitcoin Mining had raised concerns about Harvey illegally accessing the website by hacking into the encryption. The company also defended itself by stating that the website was still under construction and it did not at any point of time reflect the project status as the company by itself did not exist at the said time.
The FCAA inquiry panel concluded that Dominion Bitcoin Mining was not liable as the website was not active at the time screen grabs were captured and also that it never sold any shares to investors Thus, exonerating the company from any wrongdoings under Canadian law.
Now, the promoters of Dominion Bitcoin have announced that the company will sue Saskatchewan regulator for libel and he is also pursuing legal action against the violation of Charter of Rights and Freedom that allegedly took place during the course of investigation.