The New Jersey Bureau of Securities has issued a cease and desist order against Voyager Digital for selling unregistered securities through its Voyager Earn program.

Voyager Digital (VGX) is a centralized, crypto-based staking, trading, and lending platform.

The order claims that each of the crypto staking and lending accounts issued through the program since 2019 are unregistered securities because of their promise of interest rates as high as 12%.

The Bureau cites as evidence for the claim messages on Voyager’s homepage encouraging users to “grow your portfolio” and “journey to the new frontier of investing.”

New Jersey claims that about 52,800 accounts and $187 million in assets are from users based in the state, out of roughly 1.5 million active accounts and $5 billion in assets on Voyager in total.

The New Jersey Bureau of Securities issued a cease and desist order to Voyager Digital.

Voyager’s marketing tactics were also criticized, with the regulators stating promotions for the program failed to disclose that Voyager’s parent company Voyager Digital LLC is a publicly traded company in Canada, not the U.S. The order claims that this “creates a misleading impression with respect to Voyager Digital, LLC’s regulatory status.”

The Bureau also alleges that while Voyager claimed to be licensed, it was only licensed in some states to act as a “money services business,” which the Bureau states does not allow for the sale of unregistered securities. It added the claim “may convey the misleading impression to unsophisticated investors that Voyager is…

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