ASC sanctions Devon Christopher Edwards and KB Crypto Inc. for securities misconduct

CALGARY, AB, Jan. 16, 2024 /CNW/ – The Alberta Securities Commission (ASC) has sanctioned Devon Christopher Edwards and KB Crypto Inc. (the Respondents) for breaching Alberta securities laws. The Respondents admitted that they distributed securities without a prospectus and acted as a dealer without being registered, contrary to the Securities Act (Alberta).

From February 2021 to November 2022, Edwards and KB Crypto raised nearly US$450,000 from 75 investors by entering into investment contracts in which the Respondents used investors’ funds to purchase and trade in contracts for difference (CFDs). The Respondents did not file a prospectus for the investment contracts and did not seek to rely on any prospectus exemptions. Edwards and KB Crypto were also engaged in the business of trading in securities but did not register as required under Alberta securities laws.

An ASC panel ordered Edwards to pay an administrative penalty of $40,000 and costs in the amount of $10,000, and to resign from all positions he may have as a director or officer of any issuer. The panel also ordered that, for a period of five years or until the administrative penalty is paid in full (whichever is later), Edwards is:

• Prohibited from acting as a director or officer of any issuer or advising in securities and derivatives.
• Prohibited from acting in a management or consultative capacity in the securities market.
• Ordered to cease trading in or purchasing any security or derivative (with limited exceptions).

The panel also ordered KB Crypto to permanently cease trading in, purchasing, or advising in securities or derivatives, and that all trading in or purchasing of securities or derivatives of KB Crypto must cease.

In its decision, the panel noted that the Respondents provided “prompt, fulsome and helpful cooperation” and that their admissions saved the time and expense associated with a contested hearing.

A copy of the decision is available on the ASC website at asc.ca.

The ASC is the regulatory agency responsible for administering the province’s securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada’s capital markets.

SOURCE Alberta Securities Commission