The Enforcement Division of the Texas State Securities Board is continuing its second sweep of suspect cryptocurrency investment products.
In an effort to protect consumers and purge bad actors from the crypto space, the State Securities Board has now entered a total of 25 enforcement actions against 79 parties allegedly involved in illegal and fraudulent cryptocurrency schemes.
On Monday, state officials entered emergency enforcement actions against PK Crypto Investment and Crypto Miner Limited (aka Cyp Miner). The cease and desist orders detail suspected cryptocurrency frauds that allegedly touted profits and ignored critical risks.
The State Securities Board reports that the ploys involved various tactics to lure consumers, such as fabricating corporate records, addresses, registrations and licensure to sell securities, appropriating the likenesses of other businesses, and making fraudulent claims related to financial statements.
According to Joseph Rotunda, Director of the Enforcement Division,
“The schemes are continuing to evolve and becoming more dangerous, simply because bad actors are becoming much more adept at creating fictional online personas that have little relation to reality.
I’ve gone on the record in asserting that enforcement regulators should work with legitimate fintech companies to ensure they comply with applicable securities laws. At the same time, regulators need to proactively stop promoters of fraudulent cryptocurrency schemes.
Operating unchecked, they’re able to wreak havoc on the investing public, leveraging social media and online marketplaces to quickly victimize our communities. In many cases, regulators serve as the first and last line of defense in preventing these white-collar actors from defrauding blue-collar investors.”