In an official announcement, shared on December 27, Missouri-based crypto firm Mavixbtc received a cease and desist order on account of fraudulent business activity.
Fraudulent Crypto Firm Receives Cease and Desist Order
The announcement reads that Missouri Secretary of State Jay Ashcroft’s Securities Division ordered Mavixbtc to stop business operation and remove the fraudulent website. It claims that the firm wasn’t registered and misled the investors via its deceptive website. More so, regulators alleged that the firm falsely claimed to be registered with the financial industry Regulatory Authority and the Securities Investor Protection Corporation. It further added that;
The company also fraudulently used the registration number of a registered investment adviser representative who had no knowledge of Mavixbtc.
The crypto industry has several such cases that appeared to be well organized, well-funded and registered with the respective country’s authorities – however, the case is quite different on the other side of the coin. Per the report, Mavixbtc involved in offering investment advisory and brokerage services.
However, the crux of the matter is that the firms offering such services are expected to be registered.
In trying to sell investments in cryptocurrency, Mavixbtc touted potential investment returns of up to 55% in as little as six days. At the request of the division, the domain host for the company’s website complied with the cease and desist order and removed the fraudulent website, reads the document.
While advising on the matter, Securities Commissioner David M. Minnick notes that “don’t be fooled” by looking at the professional looking website as scam artists are fully aware of what entices investors. Noticeably, David M.Minnick mentioned they…“promise immense investment returns”. He has also suggested to reach out to the office before making such an investment. The authorities will assist you by providing information if the firm or agent is “registered to offer securities”.
Although the year 2019 is ending, yet it is not the end for crypto scams such as Mavixbtc. Despite the market is trading at a slower pace, bad market actors continued to catch the potential opportunity to attract investors. In a nutshell, Secretary of State Jay Ashcroft urged investors and the general public to follow due diligence and assess before investing in any scheme related to crypto.