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Texas regulators arrest three cryptocurrency scams


  Texas cryptocurrency

The Texas State Securities Board has issued an emergency action to stop deceptive offers of investments in three schemes related to cryptocurrency.

The agency has issued an order to suspend and revoke Coins Miner Investment Ltd, DigitalBank Ltd, as well as Ultimate Assets, which is responsible for offering misleading ROI and promises to raise an initial investment of $ 1,000 in $ 10,000 in three weeks [19659004] Coins Miner Charged for CyberFraud

According to the emergency order, it was discovered that Coins Miner used e-mails and manipulated online media to solicit funds from Texas residents by pretending to represent Coinbase , a company based in San Francisco that operates online platform for the purchase, sale and preservation of the digital currency.

Ana Julia Lara, a subsidiary of Mint Coins who created the fake email, is also accused of being vice president of CoinTelegraph Media Group.

also accused of fabricating photographs to show his "avant-garde office", as well as using repertoire photographs to portray his employees.

ICO Scam

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The second letter of termination and desistence of the Regulator was targeted at DigitalBank for claiming the construction of an external w alled called "Photon Encrypted Ledger Key" and raising capital for an offering of illegal initial currencies (ICO). In addition, it was discovered that DigitalBank offered shares issued by the company and the issuance of a utility currency, called DBGK, set for an ICO next year.

According to the order, the company informed prospective investors to purchase DGBK for $ 0.50 and sell it for $ 10.00 during ICO. With these terms, an investment of $ 5,000 will increase to $ 100,000 in the ICO period.

The Texas Securities Board, however, concluded that the offer was misleading, as it deceived investors on the profitability of the company, hiding the key information needed to make an objective decision.

In addition, DigitalBank is also accused of deceiving people with multiple videos with President Barack Obama, used to describe the key to Photon's encrypted book. The videos, according to the Securities Board, are misleading as they were created during the SXSW 2016 festival, several years before the start of DigitalBank.

Misleading numbers

The third letter of termination and desistence of the Texas State Securities Board was issued for Ultimate Assets, which deceptively guaranteed investments with a ROI of 900% in Bitcoin and in Forex trading.

Daniel Dishmon and John Jason Woodard are named for publishing fraudulent investment announcements affecting Texas residents.

In addition, Ultimate Assets told potential investors that they would be able to provide excessive returns. For example, an initial investment of $ 500 would yield a return of $ 5,000, an investment of $ 1,000 would yield a return of $ 10,000 and so on. The company also stated that its trading platform did not involve any risk and that returns were always guaranteed.

Images from Shutterstock

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