On Friday, the state's Securities and Exchange Commission issued its fourth cease-and-desist order in a month regarding cryptocurrencies.
"DavorCoin is violating sections of the Texas Securities Act by selling unregistered securities and misleading the public." - said Travis Jay. Iles, an authorized officer of the Texas State Securities Board.
The Texas State Securities Board has previously issued several cease-and-desist orders against cryptocurrency-related activities:
January 24 against a Hong Kong company that sells r2b coins, “promising investors that the digital currency will soon become one of the most valuable in the world.”
January 4 against BitConnect, which “offers investors programs related to cryptocurrency, which, according to the company, will bring a return of 100% or more in a year."
December 20 against the company USI-Tech Limited, "a foreign company that promises minimal risks, triple income from investments associated with bitcoin mining."
After the publication of the ruling against the BitConnect company, the DavorCoin company tweeted on January 16 the following "this does not change anything for us, except that now Davor is a leading credit platform in the world!”
The company claims that it pays interest on customer deposits in digital coins that can only be purchased with bitcoin. The coin has lost more than three-quarters of its value since Thursday, according to CoinMarketCap, and was trading at about $1.60 on Monday.
The rulings followed an undercover investigation into cryptocurrency investment programs, said Joseph Rotunda, director of the Texas State Securities and Exchange Commission's enforcement division.
"Our fears that these programs were being marketed to retirees were confirmed," Rotunda said. “They did not disclose information that should be disclosed to the investor.”
Other states have not yet taken such drastic steps regarding cryptocurrency transactions.
Florida, North Carolina and Kansas issued an investor warning regarding cryptocurrency and ICOs in January, following a warning issued by Massachusetts in December.. Five days after Texas, the North Carolina State Securities and Exchange Commission also issued a temporary order to cease the cryptocurrency business of BitConnect.
At the federal level, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have stepped up their crackdown on speculative and fraudulent activity in the cryptocurrency space over the past several months.
SEC Commissioner Jay Clayton and Spokesperson CFTC J. Christopher Giancarlo is scheduled to participate in the Senate meeting on Tuesday morning.
The SEC also said it received a court order last week to halt the token sale to AriseBank, which was said to have totaled $600 million in sales. The court also decided to freeze the assets of AriseBank and its two co-founders. Texas issued a cease-and-desist order for AriseBank back in January.
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According to https://www.cnbc.com
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