Texas orders 15 alleged digital currency scams to cease operations

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The Texas financial regulator has ordered 15 alleged digital currency and foreign exchange scams to cease their operations immediately. The watchdog issued cease and desist orders to the firms, claiming they have been using the Internet to “advertise, hype and sell fraudulent digital currency investments.”

In three separate notices, the Texas State Securities Board ordered the 15 firms to cease and desist their operations in the state. In the first order, the regulator named 10 firms which it claimed have been offering illegal digital currency investment products. It also named James Blundell—the man it alleges has been operating all 10 scams. As per the TSSB, Blundell has been soliciting investment through social media platforms.

The 10 are Reliable Miners, MaxFX Internal Trade, Sure Trade Earnings, CryptoTradeFXWay, Proactive Expert Trading, Proactive ExpertTrade, AntPoolTop Mining, ReliableFX Internal Trade, ExpertTrades247 and BitcoinFX Options.

TSSB alleges that Blundell has been luring investors with promises of huge returns. One of his companies promises a 1,400% return in just five days of trading. Blundell has also been falsely claiming to be a licensed binary options trader in Texas. In addition, they claimed he has been using a forged driver’s license, failed to register any of his 10 firms with the TSSB, engaged in fraud and concealed the risks associated with digital currencies.

In its second order, the regulator named Binary Trade Forex, FX Trades and IQTrade, alleging they have been illegally offering forex, binary options and digital currency investment plans. The three allegedly promise between 30-120% return daily, with returns dependent on investment amount. The FX Trade website additionally touts “100% profit guarantee.”

As with the others, the three companies have fake licenses, fake addresses and operate without necessary registrations. They also fail to advise their clients on the risk associated with digital currency and forex investment products.

TSSB named GeniusPlanfxpro in its third cease and desist order. The company has allegedly been offering digital currency, forex and binary options investment plans illegally.

TSSB Commissioner Travis Iles warned investors against investing with online companies they know little about.

He stated, “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.” 

See also: CoinGeek Live panel on the Regulation of Digital Assets & Digital Asset Businesses