Yet another cryptocurrency investment scheme has been stopped in the United States. This week, the Texas State Security Board (TSSB) has issued a cease and desist order to Forex EA and Bitcoin Investment LLC, which authorities said has been offering unregistered securities whilst also making deceiving statements that mislead gullible investors.
This scam recalls the infamous Bitconnect and USI-Tech frauds that came to an ignoble end earlier this year, but not after thousands of investors had come to grief losing substantial amounts of money in failed investments. These schemes typically start advertising profits of 100% or more with the end result being all too familiar for those who are silly enough to fall for these Ponzi style schemes.
Forex EA and Bitcoin Investment LLC were represented by James Butcher and Richard Dunn, who Texas securities authorities said were involved in fraud in connection with forex investment offers as well as using materially misleading and deceptive practices.
In its order, the TSSB said the Forex EA claimed “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 attrtibutable to Respondent Forex EA & Bitcoin.”
The order also alleged that the company promoted various cryptocurrency investment programmes, which guaranteed no less than 100% profits over a three-week period without a shred of risk. After all that happened recently with scams and fraudulent ICOs, it is a wonder that there were any potential investors fell for such a wildly fantastic scheme. Additionally, the order claimed that Forex EA purposely hid information from clients that was crucial including the risk that was associated with such an investment.
According to the TSSB, Forex EA promoters allegedly “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…”
And it’s not just Texas that is going after cryptocurrency scams in a big way. Recently, the Colorado Department of Regulatory Agencies (DORA) announced the opening of an investigation into two companies that were promoting ICOs on their websites. DORA authorities said Linda Healthcare, which promotes the “LindaHealthCoin” token, and Broad Investments LLC failed to provide information on the risks of investing in crypto or ICOs on their websites.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
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