Arizona Corporation Commission issues cease-and-desist order against stablecoin seller

The Arizona Corporation Commission (ACC) filed a temporary cease-and-desist order against a stablecoin seller for allegedly offering and selling registered securities in the state, violating the Arizona Securities Act.

The order was issued against Christopher Michael Maxon and IVT Media Group LLC, which is a limited liability company that is registered in Wyoming and has offices in Glendale and Peoria. Maxon is the founder and CEO of IVT.

As part of a three-phase stablecoin, Maxon and IVT allegedly solicited investors to purchase an initial coin offering of digital assets called Iron Vault Tokens “IV-SOL”, royalty positions and real estate acquisition returns, according to ACC’s security divisions.

Maxon and the company said IV-SOL was scheduled to launch on Thursday and advertised the opportunities as a no-risk investment that had forever-generative returns.

ACC noted that Maxon failed to disclose to customers that he is lien debtor for around $15,000 since 2005 and has had five people complain about being scammed by two of Maxon’s consumer cash businesses. Additionally, during 2022 and 2023, he was evicted, declared a judgement debtor and ordered to pay around $300,000 in New York and $553,500 in Arizona.

On top of administrative penalties, ACC is seeking a permanent cease-and-desist against Maxon and IVT and wants them to pay restitution to investors.

The temporary order will remain in effect until a decision is made.

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