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Texas Government Brings Down Over 15 Fraudulent Investment Platforms

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The crypto industry has been catching the attention of the entire globe. With the value of Bitcoin reaching new heights, people have been making attempts to garner some easy money, not in the most honest way. Several governments have been trying to bring down illicit operations and Texas seems to be the latest to conduct a “series of sweeping actions.”

Texas State Securities Board Slaps Several Crypto Platforms With Cease And Desist Order

In an elaborate article titled, “Commissioner Announces Series of Sweeping Actions Against Fifteen Online Crypto, Forex and Binary Options Investment Scammers” published by the Texas State Securities Board, the agency revealed that several investment platforms were brought down for carrying out fraudulent investment schemes. The post penned down by Commissioner Travis J. Iles pointed out that over fifteen platforms including forex, binary options as well as crypto were formulating deceiving projects in the state. Three cease and desist orders were issued against the platforms. The first cease and desist order was issued against James Blundell, an individual who defrauded people through ten platforms that offered crypto investment opportunities.

Blundell, a resident of Seabrook Texas created social media profiles and lured people to invest in his platforms. His scammy platforms included, Proactive Expert Trading, Reliable Miners, BitcoinFX Options, Sure Trade Earnings, CryptoTradeFXWay, Proactive ExpertTrade, ReliableFX Internal Trade, MaxFX Internal Trade, AntPoolTop Mining and ExpertTrades247. The investment plans on these websites ranged from $10K all the way to $1,000,000 with a profit of 80% per hour for 24-hours.

Another order was issued against Binary Trade Forex, FX Trades, and IQTrade. These websites promised its users a daily return of 30% to 120%. The plans on this website ranged from $500 to $10,000.

Speaking about the same and alerting the investors, the Commissioner further wrote,

“Investors can’t afford to take everything at face value when transacting over the internet. They need to thoroughly investigate before they invest– because on the internet, anyone can fake a trading license, publish phony testimonials or falsely claim to be regulated by an offshore agency.”

Investors were urged by the Commissioner to steer clear of scammy operations. The Texas State Securities Board Commissioner also gave its citizens a means of contact in case they came across such schemes or platforms. The post read,

“Investors can begin the due diligence process by contacting the Texas State Securities Board by telephone at 512-305-8392 or by email at [email protected]”

Alabama and Texas Bans South African Firms After Crypto Credit Card Scam

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Securities watchdogs in both Alabama and Texas issued a cease and desist order following a crypto credit card scam promoted by South African firms. Accordance to a joint order issued by both the Texas State Securities Board (TSSB) and the Alabama Securities Commission (ASC), companies such as the South African Liquidity Gold Trust, Liquidity Gold Solution and Liquidity Global Card Solution and an individual named Lance Angus Jerrard have issued prohibition orders.

As per reports, the sanctioned firms and Jerrard advertised a fraudulent debit card, dubbed Liquidity Card on social networks and a radio station in Austin, Texas. The perpetrators wrongfully stated that there is a secure way for people to make money while staying at home amid the COVID-19 disaster.

Crypto credit card scam breakdown

The firms allegedly utilized their advertisements to claim that Liquid Card could help investors evade taxes by transacting in stablecoins such as TUSD, USDC and PAX coin. The fraudsters were to recruit and convince new users to commit a minimum of $1,150 in one portion or more of 8,400 parts in the crypto credit card scam. Furthermore, the investors claim that the debit card functions as a traditional debit card.

The project, which was scheduled to start in October, aimed to register over 8 million new users in 36 months. According to the joint order release, the firms mentioned above offer investors a written 100 percent cash back guarantee, which the order terms as fraudulent. Notably, the watchdogs also noted that they had disguised vital information; the risks posed by the project to potential cardholders, and how they make money from the capital employed.

Involved parties have 30 days to issue a response

According to the prohibition order, all the liquidity companies listed are under no obligation to sell securities in Texas or Alabama. Moreover, the firms allegedly used fake pictures to lure investors into the crypto credit card scam. The authorities have given all the involved firms a 30-days grace period to respond to the cease and desist order.