The Texas State Securities Board (TSSB) published a report on April 10 based on a four-week investigation into cryptocurrency fraud in which 32 illegal schemes were discovered.
The investigation was carried out due to the improvement in investment opportunities in flagellated cryptocurrencies to Texans. According to the report published by TSSB, frauds with cryptocurrencies have been identified as "generalized".
Cryptocompanies not registered
The Texas Securities Foreclosure Examination began on December 18, 2017 and investigated 32 businesses related to cryptocurrencies, 19 of which claimed to use Bitcoin in one way or another. The findings of TSSB revealed a series of illegal activities connected with cryptocurrency schemes. The list includes some important points that must be taken into account:
Of these 32 companies, no company had a license to sell securities in the state.
11 encryption companies only had an online presence, but they did not have a physical address.
Five of the companies listed promised unrealistic returns, a clear indication of fraud.
Six of them were executing multilevel marketing schemes (MLM).
According to the TSSB report, many of these fraud companies intelligently say digital assets. These fraud schemes use currencies and tokens to refer to digital assets, however, in accordance with the laws of the United States, tokens are considered securities.
Surprisingly, according to the TSSB report, "no promoter of 32 cryptocurrency promoters that were investigated to sell securities in Texas was registered."
In January 2018, the Texas Securities Commissioner issued a cease and desist order against the Ponzi Bitconnect scheme.
Bitconnect was noted as a high-yield investment program that would rip off investors' money by offering unrealistic 600 percent annual profits.
Investors are attracted to Crypto Space, amid risks
The case of Bitconnect and other similar examples were published in the TSSB report. Almost at the same time, when they cut Bitconnect; it also served the cease and desist order of AriseBank, which called itself the world's leading decentralized cryptocurrency bank.
The Texas authority had problems with the use of the word 'Bank', in AriseBank, which sends the wrong message to people. In addition, the allegation that was registered to execute banking activities in the state.
In another case, the application division of the TSSB also issued a cease and desist order against DavorCoin, which allegedly defrauded Texas residents by offering them a crypto program that would generate a monthly interest of 48 percent.
Similarly, the TSSB investigation also found USI-Tech Limited, a Dubai-based company that was selling "unregistered BTC Packages." According to the fraud program, the company used "unique algorithms" to minimize risk, where investors can buy up to 150 percentage profit.
According to TSSB, USI-Tech Limited was not authorized to sell Bitcoin packages to Texas residents. Companies that wish to offer securities in the state of Texas are required to register with the State Securities Board.
The Texas State Securities Board also reminded that the cryptographic space is still in its dormant stages and that there is a lot of risk involved when investing in the chips of new companies. None of the companies investigated by TSSB clearly declared or promoted the risks when investing in cryptocurrencies.
However, there are many risks inherent to cryptocurrencies, such as the lack of a national and international regulatory framework, the penetration of hackers in security systems, the unpredictability of cryptocurrency prices.
Despite considering all the risks, cryptocurrencies are one of the most profitable investments currently. The cryptographic space is also growing at an unprecedented rate where new investors in the form of individuals and companies are entering the space creating an enrichment conducive to fraud according to TSSB:
"There is no doubt that the evolution of cryptocurrencies offers legitimate companies new and exciting means to obtain capital and promote new dynamic technologies."
At the same time, however, the investigations of the Public Enforcement Division revealed that the revolution in digital money is creating a mature environment with illegal and fraudulent offers of securities. "
¡@joseriv898! Muy bueno el contenido, sigue asi!
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