Mobile Phone Service
StormX, Inc.Information and Alerts
Alert Details
This business has 2 alerts.
Government Actions
S-18-2422-22-CO01 – StormX - Consent Order
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On August 23, 2023, the Securities Division entered into a Consent Order with StormX, Inc. (“StormX, Inc.”), which had been the Seattle-based issuer of the cryptocurrency Storm Tokens, and its subsidiary StormX Global SEZC f/k/a CakeCodes (collectively, “StormX”) to settle a Statement of Charges that the Division had entered against StormX.
The Statement of Charges alleged that StormX sold more than $32 million worth of its Storm Tokens in a crowdsale in late 2017. The Statement of Charges further alleged that the Storm Tokens were unregistered securities under the Washington State Securities Act (the “Act”), and, therefore, that StormX had violated the Act’s securities registration provision.
In entering into the Consent Order, StormX neither admitted nor denied the allegations made in the Statement of Charges and agreed to cease and desist from violating the Act.
StormX also agreed to pay fines totaling $100,000 and to reimburse the Division $10,000 for its investigative costs.
StormX waived its right to an administrative hearing on and judicial review of this matter by entering into the Consent Order.
For more information, please contact the State of Washington Department of Financial Institutions, Securities Division at https://dfi.wa.gov/ or 1-877-746-4334.
Pattern of Complaints
On July 12, 2021, Better Business Bureau was alerted to an online crypto currency business operating as Storm X, https://www.stormx.io/. The website advertises being “The Easiest Way to Earn Crypto “and “No complicated crypto-jargon. Just sign up, shop, and start your Crypto Cashback journey!” Some consumers report that unbeknownst to them, Storm X performed a “Token Swap” which impacted the value of their current coins. Consumers allege Storm X was unresponsive to their requests for assistance in allowing them to participate in the Coin Swap.
On July 12, 2021, and July 23, 2021, BBB reached out to Storm X regarding the consumer complaints however, the business has not responded.
Research by BBB found that on July 07, 2021, the following announcement was posted on the business website under StormX Governance, https://governance.stormx.io/.
"Manual Token Swap - Proposal #01
Up to a few hundred $STORM token holders missed the token swap window last year. We're voting on a mechanism to allow them to swap this year. Just to be clear, the swap will re-open, we are just voting on the details of how to run the swap.
The following are the requirements for a wallet address to be eligible for the swap:
• The wallet currently holds STORM tokens
• The STORM tokens were in the wallet before the end of the last swap on Feb-05-2021 05:46:45 PM +UTC. You can verify the disable Migration function was run here.
If the wallet address meets these requirements then the wallet owner can submit their wallet address to an online form which will be verified for eligibility. We understand using a smart contract to do this would be nifty, but using a form is the fastest way to help these community members and kick off governance"
Complaints can be filed with Better Business Bureau at www.bbb.org as well as with the Federal Trade Commission Consumer Protection at https://reportfraud.ftc.gov/#/.
Important Information
Additional Info
Mail sent to the business on 09/05/2023 was returned by the U.S. Postal Service as Forwarding Order Expired.
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