Texas Securities Board Crackdowns On Bitcoin Fraud, Eliminating BitQyck And My Crypto Mine Scams
Crackdown On Cryptocurrency Fraud
Texas is taking a hardline stance against cryptocurrency fraud. Recently, the state’s securities regulators cracked down on two cryptocurrency platforms: BitQyck, Bitqy Token, and My Crypto Mine. The entities were investigated for operating fraudulent projects and were then prosecuted by the Texas Securities Board Enforcement Division.
These are not the only recent activities undertaken by the Texas Securities Board. There are hundreds of other investigations in an attempt to eliminate malicious cryptocurrency projects in the state. In the case of My Crypto Mine and BitQych, the Texas Securities Board issued a cease and desist order when it had noticed operations may be functioning in a fraudulent manner. The Board stated that there is “immediate and irreparable harm to the public.” After further investigation,
My Crypto Mine’s Mark Royer faced charges, including that the investments should have been treated as securities, failure to classify as such is a violation of the state’s securities law, the sale of the investment is fraud, and offers by the company contain statements that are materially misleading.
According to Joseph Rotunda of the Texas Securities Board,
“Promoters can make all sorts of extravagant, exaggerated claims. At the end of the day, though, only the facts that matter. Investors need to know whether they’re rolling the dice by trusting their funds to an inexperienced manager or, even worse, a trader who has left a train of empty wallets and broken dreams.”
Based on such statements, it is likely that Royer will face some serious litigation. Those who are found guilty of violating the state security’s act face a third-degree felony charge that is punishable by up to ten years in prison. The acts taken by the Texas Securities Board shows that the state is no longer going to idle by as cryptocurrency entities act within the state, but without complying with regulations.