Texas Securities Commissioner Travis J. Iles has issued emergency ordinances in opposition to 3 separate fraudulent cryptocurrency schemes related to Russian scammers.
The orders had been issued on September 18, 2018, in opposition to DGBK Ltd., an offshore virtual “bank” that says to have advanced a hack-proof custody answer for virtual property and digital currencies; Coins Miner Investment Ltd., a Russian cryptocurrency funding promoter; and Ultimate Assets LLC, a purported cryptocurrency and foreign currency echange dealer.
Coins Miner Investment Ltd.
Based in Russia, Coins Miner extracts cash from U.S. citizens underneath false pretexts, pretending to behave on behalf of Coinbase, the San Francisco–founded crypto alternate platform. According to the Emergency Cease and Desist Order, it does this through sending junk mail emails impersonating Coinbase, deceiving buyers into delivering their cash through leveraging the logo symbol of the virtual asset platform.
The order additional specifies sure Ana Julia Lara, performing on behalf of Coins Miner, falsely claims to paintings for Coinbase as a crypto dealer. To this finish, she additionally sends out to buyers purportedly appearing her with the president of Ripple, while the individual within the used to be in reality a vp of Cointelegraph Media Group.
Claiming to function out of the U.Okay., Coins Miner is in reality founded within the Russian town of Volgograd, and it makes a number of fraudulent claims on its web page to potential buyers. On its web page and in its advertising and marketing efforts, the corporate additionally intentionally misrepresents a video of a Fortune journalist to make it appear as despite the fact that its providing is being promoted. In addition, it makes use of inventory images to constitute its staff and its place of job deceitfully.
Under Texas legislation, the investments promoted through Coins Miner are categorised as securities, however they don’t seem to be registered to promote securities within the state.
Belize-based DGBK claims to have advanced a hack-proof custody answer for virtual property, and it solicits finances to increase this idea. Claiming to be at paintings on a so-called Photon Encrypted Ledger Key, a virtual pockets that may be opened the use of biometric information, the corporate claims that it might facilitate totally nameless and untraceable transfers of cryptocurrencies and fiat currencies just like the U.S. buck.
Using a misappropriated video of Barack Obama talking on the 2016 South through Southwest (SXSW) Interactive pageant in Austin, DGBK provides potential buyers the chance to put money into the DGBK token with guarantees of as much as 1,900 p.c returns following the ICO, set to be held subsequent yr.
The corporate claims to have on its payroll a litany of cybersecurity mavens and blockchain experts with out providing any evidence to make stronger those claims, and it additionally provides securities on the market with out following the important registration necessities.
Ultimate Assets LLC
Claiming to be founded in Arlington, Massachusetts, however with no provable deal with, Ultimate Assets guarantees buyers that an funding of $1,000 will turn out to be $10,000 inside of simply 3 weeks. It additionally falsely claims that each one preliminary investments within the buying and selling program are totally indemnified and that rebates will probably be issued within the tournament of failure to yield income.
Its principals indexed within the Cease and Desist Order also are accused of violating the Texas Securities Act through providing securities investments with out being registered with the Securities Commissioner.