Texas Issues Another Cease-And-Desist Over Alleged Crypto FraudFebruary 27, 2018 4:00 pm
A cease-and-desist order was issued by the Texas State Securities Board (TSSB) on Monday against a Panama-based cryptocurrency firm the board accuses of promoting unregistered securities targeting state residents, CoinDesk reported.
LeadInvest.net, the state regulator said, uses cryptocurrency mining and trading programs the state considers unregistered as well as using fake stock images to portray team members, the report said.
The Texas agency’s complaints detail the firm’s website and promotions allegedly making deceptive and misleading statements when soliciting Texas residents – promising 20 to 100 percent returns on investments within one to three months through the firm’s cryptocurrency mining and trading services, CoinDesk reported.
In addition, the TSSB claims the web profile images of the company’s staff are either stock photographs of models found at image vendors or images of other individuals with no connection with the company, the report said.
In its order Monday, the TSSB alleges as of Monday, the firm has collected more than $177 million from more than 190,000 accounts.
The new cease-and-desist order is the latest in a series of efforts in February alone, the report said. TSSB has already filed cease-and-desist orders against two other firms – an overseas initial coin offering and a cryptocurrency lending project.
– WN.com, Jack Durschlag