Texas Securities Commissioner Travis J. Iles has taken emergency action against mining company promoters who aggressively recruit sales agents through LinkedIn, Facebook and other online marketing channels.
The regulator issued a decree to cease the activities of the Canadian company EXY Crypto and the Australian company AWS Mining PTY Ltd, which are engaged in cryptocurrency mining.
The two firms and their affiliates, including crypto mining promoters in Midland, San Antonio and Tyler, Texas, are accused of violating the Securities Act because they are not registered with the state SEC. Companies and individuals have 31 days to appeal the order to the Department of Criminal Investigation.
The Texas Securities Agency has prohibited these firms from offering for sale any securities until they are properly registered or exempt from registration. According to the decree, companies issue investment instruments called “crypto mining capacity contracts.”
AWS Mining claims to mine cryptocurrencies on computers in China, Russia and Paraguay. Additionally, the company and its unlicensed sales agents claim that the contracts "guarantee up to 200 percent profit on the purchase price," but the decree states that AWS Mining does not honor the guarantees, exposing investors to the risks associated with cryptocurrency mining.
Morgan Nolan, San Antonio office manager for EXY Crypto, says investors will receive a weekly return of at least 10 percent. The Texas SEC said the company misled customers by claiming to be licensed and registered.
“EXY Crypto intentionally fails to disclose material facts about its investment, including the identity of the company's directors, its place of business, and the costs and fees that investors would be required to cover by investing in the mining program,” Texas regulators said in the order.
According to rttnews.com
You May Also Like
New rules for crypto services in Norway
The Norwegian Financial Conduct Authority is introducing new anti-money laundering rules for cryptocurrency exchange and custody services operating in the country. The law will come into force on October 15 and will apply to companies registered in Norway, including branches of foreign companies.
The SEC is going to develop recommendations regarding ICOs
The US Securities and Exchange Commission (SEC) has decided to clarify in what cases cryptocurrencies should be considered securities.
