Crime & Public Safety
State orders Grand Forks-registered AI firm to stop selling securities
North Dakota regulators have ordered an AI company registered in Grand Forks to immediately stop offering and selling securities in the state. The North Dakota Insurance Commissioner issued a stop order dated Sept. 24 that targets founder Shayan Mashatian and his companies Silverberry Group, LLC and WoundScribe AI Corp., citing unregistered securities solicitations tied to equity interests.
According to the department’s findings, Silverberry Group executed a Simple Agreement for Future Equity (SAFE) with an investor on or about Sept. 16, 2025. Investigators report the SAFE and related securities were not registered under the Securities Act of 1933 or under state securities laws, and they found no Form D filing in the SEC’s EDGAR system or a required notice filed with the North Dakota Insurance and Securities Department.
Citing state law, the stop order directs Mashatian and the companies to cease offering, selling, or effecting the contested securities. The order explicitly does not apply to people who have already invested. The department also notes that the respondents have the right to request a hearing before the commissioner within 15 days of receiving the order and may be represented by counsel.
The documented actions and findings are administrative determinations by the Insurance and Securities Department; the order alleges lack of required registration and requests procedural rights for the respondents. No criminal charges, trial outcomes, or injuries are reported in the department’s stop order as provided.
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