Bitcoin Investment Scheme Issued A Cease-and-Desist In Texas
A cease-and-desist order has been issued by the Texas State Security Board (TSSB) this past Tuesday, May 8 directed at a Bitcoin investment company that provides unregistered securities and misleads investors with deceiving statements regarding their investments, as reports suggest.
The official notice has been issued against Forex EA & Bitcoin Investment LLC, firm that is represented by James Butcher and Richard Dunn. In accordance with the order, the TSSB alleges that the company has engaged in “fraudulent activity in connection with the offer of investments in the forex and Bitcoin trading program” and “materially misleading and deceptive practices.” The order further mentions:
- “Respondent Forex EA & Bitcoin is claiming to be a limited liability company with a place of business in New York, which is materially misleading or otherwise likely to deceive the public because the New York Department of State, Division of Corporations, does not reflect any filings attributable to Respondent Forex EA & Bitcoin.”
The C&D order alleges that the investment firm has promoted several Bitcoin investment schemes that guarantee “100% profits in 21 days” with little to no risk taken. To further worsen the company’s doom, regulators claim that the firm has not properly disclosed vital information related to its background and the potential risks associated with Bitcoin investments:
- “Respondents are representing investments in the Forex and Bitcoin trading program will provide lucrative profits while failing to disclose risks associated therewith, which is materially misleading or otherwise likely to deceive the public because there are risks associated with the Forex and Bitcoin trading program, and these risks relate to trading in cryptocurrencies…”
On a related note, Colorado’s Department of Regulatory Agencies (DORA) has recently investigated two companies for promoting illegitimate Initial Coin Offerings (ICOs) to residents of the state.