The Texas State Securities Board has successfully shut down the operations of an illegal cryptocurrency investment scheme.
Listen to article The Texas State Securities Board has shut down the activities of a South African multi-level marketing scheme involving cryptocurrency investments in the state.
In a recent statement, Securities Commissioner Travis J. Iles said that the company has duped investors into sending them Bitcoin, which would supposedly be transferred to unidentified forex brokers for automated trading using artificial intelligence.
According to the statement, Mirror Trading International PTY LTD recruited unregistered salespersons to lure investors to invest money for a return of 10% per month.
The salespersons were supposed to promote the scheme and onboard new investors and multilevel marketers to earn their commissions.
Apart from promoting the get-rich-quick scheme through an MLM program, regulators also accused the company and its operator Cornelius Johannes "Johan" Steynberg of misrepresenting or concealing important information regarding the background of the owner, the forex broker, the handling of its cryptocurrencies, and the artificial intelligence used for trading.
Mirror Trading reportedly exaggerated their accomplishments and claimed that they had enrolled almost 76,000 members from across 170 countries, of which, 22,500 had signed up in the last four months.
Iles named ForexAndBitcoin.com, Michael Cullison, Steve Herceg, and Brian Knott as the four multilevel marketers involved with this scheme.
He said that their actions were illegal according to laws that require the registration of securities and their sellers.
"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."
Texas Regulators Take Aim at South African Cryptocurrency MLM Scheme
Published on Jul 9, 2020
by Cointele | Published on Coinage
Here's what on-chain data is saying about Band Protocol's 30% decline
Band Protocol has been garnering significant attention over the past few weeks due to its intense rally that sent it from the lower-$4.00 region in early-August to highs of nearly $18.00 that were set earlier this week.
How Not To Lose Everything During the Bull Run
With sentiment suggesting Bitcoin and the crypto markets are about to go on a bull run, seasoned old timers are warning about the lessons learned from previous rallies.
CoinShares: 'Bitcoin Is Like a Risky Tech Stock''
Behaving like a tech stock means Bitcoin carries the same high risk and high reward opportunities as a fledgling startup.
Flipstarter Campaign Launched to Create Viral BCH Videos for Normies
Bitcoin Cash advocate and CEO of BitcoinBCH.com, Hayden Otto, has launched a fundraising campaign to create viral videos promoting BCH to mainstream audiences - after failing to win over crypto converts to the cause.