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After releasing a letter-of-intent to ‘acquire’ 24,800 bitcoins, penny stock Nilam Resources saw the price of its shares rocket and its market cap tap nearly half a billion dollars before collapsing to almost zero once the former CEO and president (who also worked as an SEC compliance consultant) called the company a “classic pump and dump.”
However, the story doesn’t end there, and as of April 15, Nilam Resources has rebranded, started a private token sale, and deleted any trace of its old website.
Unfortunately, this probably won’t be enough to stave off actions from regulators or law enforcement.
Read more: Nilam Resources stole logo from skateboard brand Powell Peralta
Goodbye Nilam Resources, hello Mindwave DAO
Nilam Resources, still available to trade on OTC Markets and still with the ‘caveat emptor’ designation from the trading platform, has dramatically altered its website.
Specifically, the new company includes ‘DAO’ (decentralized autonomous organization) in its domain name but makes no mention of the concept anywhere else on its website or in its so-called ‘litepaper.’ It also tells users to ‘invest’ upon entering the site, offers options to buy tokens, and expands on the numerous ways in which it will utilize investor funds. These include covered calls, negative gamma, and volatility trading.
The token, roadmap, and description of the newly formed company appear to meet the definition of an unregistered security, with dividends for investors and promises of future profits.
While Nilam Resources may be comfortable with what it’s presenting as a ‘utility token,’ a lawyer familiar with the offering said that the company is “speed-running every regulatory issue on their landing page.”
“Every line I see is more implicating. I don’t even understand how they did this,” the lawyer said, adding “This is obviously illegal.”
Protos reached out to both Nilam Resources and OTC Markets but neither have responded. The story will be updated if and when they reply.