THELOGICALINDIAN - A US accompaniment has issued emergency cease and abandon orders to two companies and accompanying bodies purportedly affianced in cryptocurrency advance schemes The aboriginal aggregation acquaint videos of three mining farms composed of online banal images according to the adjustment Both companies fabricated abundant materially ambiguous claims and abandoned US balance laws
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Bitcoin Trading & Cloud Mining Limited
The Texas State Securities Board has issued “an emergency cease and abandon order” to London-based Bitcoin Trading & Cloud Mining Limited, additionally accepted as Btcrush. Additionally included in the adjustment are the company’s sole administrator and actor Jaylon Cross, architect and CEO Bruce Rodgerson, Chief Marketing Officer Robin Lozinski, and sales abettor Thomas A. Johnson.
Btcrush is self-described on its website as “a cloud-based cryptocurrency mining aggregation that mines bitcoin and altcoins and profits from affairs altcoins for bitcoins.” The aggregation promises an advance acknowledgment of 4.1% circadian absorption behindhand of the advantage of its mining operations, abacus that its capital assumption is a “100% achievement agreement for [its] customers.” The aggregation claims:
In addition, the aggregation has been recruiting investors as sales agents, able them a agency of 15% of the arch deposited by the new investors that they recruit.
Bogus Mining Farm Videos
According to the order, Btcrush had acquaint videos of its three mining farms on its website.
The aboriginal mining acreage the aggregation claims to accomplish is the Maverik Farm, which it describes as the “most able farm” amid “in the mountains.”
The additional is the Hephaestus Farm, which Btcrush claims to be the “most reliable and backstairs acreage amid in a alembic of the Additional World War times.”
The third is the Rebelpower Farm, amid “at the above ability station.”
However, the Securities Commissioner wrote:
Forex EA & Bitcoin Investment LLC
The second company to accept an emergency cease and abandon adjustment from the Texas State Securities Board on Tuesday is the New York-based Forex EA & Bitcoin Investment LLC, additionally accepted as My Forex EA. Additionally included in the adjustment are James Butcher and Richard Dunn who bazaar the company’s Forex and Bitcoin trading affairs targeting Texas residents, the Securities Commissioner detailed. They advertise:
Similarly, an advance of $20,000 will crop $20,000 and $5,000 will crop 50,000 in the aforementioned time period, the adjustment describes. They additionally affirmation that the investments absorb “no risk” and their allotment “are 100% assured and that there is no accessible way investors can lose money.”
Violating Securities Laws
The Texas State Balance Board’s adjustment explains that the investments both companies action are balance and their sales are in abuse of the Balance Act back neither the companies nor their agents accept been registered with the state’s Balance Commissioner.
Btcrush additionally asks investors to accede to a “private transaction rule” of the US Balance Act of 1933 and accompanying acts back signing up. “This account is materially misleading,” the adjustment shows, abacus that the accessible will acceptable be bamboozled into cerebration that the aggregation is alms adapted balance in the state.
Furthermore, Btcrush asks investors to accede at signup that they “are advance at their own risk” and that the aggregation “reserves the appropriate to amend…. anchored absorption rates… after acceding with investors.” The adjustment says that these statements are additionally materially ambiguous accustomed the advertised agreement of 4.1% acknowledgment behindhand of the company’s profitability.
In both cases, the Securities Commissioner assured that:
What do you anticipate of Texas arising cease and abandon orders to these two advance schemes? Let us apperceive in the comments area below.
Images address of Shutterstock and the State of Texas.
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