BTC+2.32%
Crypto
Texas Securities Commissioner Issues Three Orders Against Cryptocurrency-related Fraud
Editorial disclosureRead more
All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.com. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.
Travis J. Iles, Texas Security Commissioner, has just issued three cease-and-desist letters against cryptocurrency fraud. The fraud was spread through ‘work at home’ forums online.
The Enforcement Division of the State Securities Board has just issued three cease-and-desist orders in an emergency move targeting fraud in the cryptocurrency industry. The orders were issued by Texas Security Commissioner Travis J. Illes. Last week, the division began an investigation into shady dealings among token offerings in the wake of Bitcoin’s price rise.
Three individuals and one company are being named as the culprits of a widespread scam targeting potential investors through Facebook group and advertisements. The Facebook groups were ‘work at home’ forums and, when in contact with potential victims, would redirect them to a WhatsApp number. “Work From Home | Earn Money Online | San Antonio Texas,” the ads said.
None of the individuals were authorized to sell securities. They also failed to disclose any risks associated with trading or selling them. Oftentimes, victims were directed to a platform where the culprits had full access to funds and took 20% profits as payment.
The company mentioned in the cease-and-desist orders is called Tint X Mining, based in India. The company is accused of offering bitcoin mining services promising returns. It also forged a fake license for its firm, and also does not have a longstanding history with mining.
The State Securities Board has so far brought charges against 61 parties for a total of 22 administrative cases since December 2017.
The SEC and CFTC have been ramping up its efforts to crack down on fraud in the cryptocurrency sphere. In March, both government bodies brought charges against 1Broker for not having a proper license. This month, the CFRTC brought charges against a cryptocurrency company for $147M.
Can cryptocurrency-related scams ever be properly squashed with government oversight? Let us know your thoughts in the comments below.
Image courtesy of AdvisorHub.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
