Texas shuts down fraudulent South Africa BTC trading pool

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The Texas securities regulator has entered an emergency action to stop a BTC and forex scam illegally targeting Texans. The regulator claims that the scam operates from South Africa, promising great returns from BTC investment. It is, however, a multi-level marketing scam.

The Texas State Securities Board ordered Mirror Trading International PTY LTD to cease operations in the state immediately. In its notice, the regulator claimed that the company has been selling fraudulent investments in a BTC and forex pool.

Joe Rotunda, the regulator’s director of enforcement believes that swift action was necessary. He stated, “Fraudulent multilevel marketing get-rich-quick schemes gain momentum and spread like wildfire through the internet.  We brought this action to quickly stop the illegal scheme before it irreparably harms Texans.”

Based in Western Cape, South Africa, Mirror Trading is a multi-level marketing (MLM) scam that lures investors with promises of quick returns from their investments. According to the regulator, the company requires investors to invest in BTC. It then claims to pool the BTC together and invest it in forex platforms. It purportedly uses artificial intelligence in its trading with an assured level of profits every month.

According to the regulator’s order, the company makes such claims as ‘our investments have more than 200+ days straight with positive gains’ and ‘we make up to 800 trades a day and haven’t lost a trade in over a year.’

Travis J. Iles, a Texas Securities Commissioner, further revealed that Mirror Trading has been concealing material information from its investors. This includes the fact that three of the high-ranking proprietors have previously filed for bankruptcy in the U.S.

Iles stated, “These quick-to-profits schemes rely on a little bit of smoke and the shine of mirrors. Investors are often promised safe, lucrative returns; but promoters often fail to provide basic, required information to fully inform their prospective investors and satisfy their legal obligations.”

As with other MLM scams, Mirror Trading recruits salespeople whom it pays depending on their ability to recruit new members. The company claims to have recruited 76,000 people from more than 170 countries globally. Of these, 22,500 have been recruited from March 1 this year, it alleges.

The Texas State Securities Board has continued to crack down on digital currency scams as it seeks to protect its citizens. In May this year, it halted a ‘double your money’ scam that was targeting Texans through Facebook.