Texas Regulators Shut Down Three Cryptocurrency Scams

Texas cryptocurrency

The Texas State Securities Board has issued an emergency action to halt the deceitful offerings of investments in three cryptocurrency related schemes.

The agency entered a cease and desist order against Coins Miner Investment Ltd, DigitalBank Ltd, as well as Ultimate Assets, who is charged for offering Texans misleading ROIs and promising to grow an initial investment of $1,000 into $10,000 in three weeks.

Coins Miner Charged for CyberFraud

According to the emergency order, Coins Miner was found to have used emails and manipulating online media to solicit funds from Texas residents by pretending to represent Coinbase, a San Francisco-based company that operates an online platform for buying, selling, and storing digital currency.

Ana Julia Lara, an affiliate of Coins Minter who crafted the fake email, is also accused of claiming to be a vice president of CoinTelegraph Media Group.

Coinbase 2

The organization is also accused of fabricating photographs to show its “state-of-the-art office,” as well as using stock photos to portray its employees. A video featuring stock footage of its servers, facilities, and financial professionals was also cited.

ICO Scam

ICO Initial coin offering

The regulator’s  second cease and desist letter was targeted towards DigitalBank for claiming to be building an external wallet called “Photon Encrypted Ledger Key” and raising capital for an illegal initial coin offering (ICO). Also, DigitalBank was found to be offering shares issued by the company and the issuance of a utility coin, called DBGK, set for an ICO next year.

According to the order, the company told likely investors to purchase DGBK at a price of $0.50 and sell it for $10.00 during the ICO. With these terms, a $5,000 investment would rise to $100,000 in the ICO period.

The Texas Securities Board, however, concluded the offering  was deceptive, as it misled investors on the profitability of the company, while hiding key information needed to make unbiased decision.

Additionally, DigitalBank is also being charged for misleading people with multiple videos featuring President Barack Obama, used for describing the Photon Encrypted Ledger Key. The videos, according to the Securities Board, are misleading as they were created at the 2016 SXSW festival, several years before DigitalBank’s inception.

Misleading Numbers

The third cease and desist letter from the Texas State Securities Board was issued to Ultimate Assets, which deceitfully guaranteed investments with a 900 percent ROI in Bitcoin and Forex trading.

Daniel Dishmon and John Jason Woodard are named for publishing the advertisements for fraudulent investments that target Texas residents.

Also, Ultimate Assets told potential investors that they would be able to provide excessive returns. For example, an original investment of $500 would yield a $5,000 return, a $1,000 investment would yield a $10,000 return, and so on. The company further stated that its trading platform involved no risk and that returns were always guaranteed.

Images from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.

• Join CCN’s crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from Hacked.com? Click here.
• Open Positions at CCN: Full Time and Part Time Journalists Wanted.

Advertisement

Texas Regulators Shut Down Three Cryptocurrency Scams 1
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 42,563.00
ethereum
Ethereum (ETH) $ 2,986.60
tether
Tether (USDT) $ 1.00
cardano
Cardano (ADA) $ 2.08
binance-coin
Binance Coin (BNB) $ 361.65
xrp
XRP (XRP) $ 0.935739
solana
Solana (SOL) $ 135.78
usd-coin
USD Coin (USDC) $ 1.00
polkadot
Polkadot (DOT) $ 28.63
dogecoin
Dogecoin (DOGE) $ 0.207754
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 42,563.00
ethereumEthereum (ETH)
$ 2,986.60
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 533.99
litecoinLitecoin (LTC)
$ 157.59
bitcoinBitcoin (BTC)
36.298,28
ethereumEthereum (ETH)
2.547,01
tetherTether (USDT)
0,852813
bitcoin-cashBitcoin Cash (BCH)
455,39
litecoinLitecoin (LTC)
134,39
bitcoinBitcoin (BTC)
30,976.33
ethereumEthereum (ETH)
2,173.58
tetherTether (USDT)
0.727776
bitcoin-cashBitcoin Cash (BCH)
388.63
litecoinLitecoin (LTC)
114.69

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021

Blockchain/Cryptocurrency Questions and Answers

Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin42,380 0.41 % 7.48 % 6.11 %
Ethereum2,974.5 0.59 % 7.52 % 9.90 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Cardano2.060 1.36 % 5.93 % 14.70 %
Binance Coin359.43 0.95 % 8.66 % 10.34 %
XRP0.9304 1.13 % 6.08 % 12.94 %
Solana134.58 1.57 % 7.71 % 20.50 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
USD Coin0.9994 0.00 % 0.07 % 0.37 %
Dogecoin0.2064 0.62 % 7.92 % 12.96 %

bitcoin
Bitcoin (BTC) $ 42,563.00
ethereum
Ethereum (ETH) $ 2,986.60
tether
Tether (USDT) $ 1.00
cardano
Cardano (ADA) $ 2.08
binance-coin
Binance Coin (BNB) $ 361.65
xrp
XRP (XRP) $ 0.935739
solana
Solana (SOL) $ 135.78
usd-coin
USD Coin (USDC) $ 1.00
polkadot
Polkadot (DOT) $ 28.63
dogecoin
Dogecoin (DOGE) $ 0.207754