32 Illegal Cryptocurrencies Discovered by Texas State Security Board
Apr 24, 2018 Posted / 3978 Views
What could not have been thought has actually happened! Just imagine 32 illegal cryptocurrencies being uncovered.
The Texas Securities finally reached the enforcement stage of the agency’s perusal commenced on December 18, 2017, and investigated 32 cryptocurrency-related businesses. It is said that 19 of these claim to be the sorts of bitcoins in some way or other. The findings of TSSB revealed the number or wrong and illegal activities going on and how they are connected to cryptocurrency schemes.
The list comprises some major points that should be noted:
Out of the 32 listed ventures, not even a single company was licensed/ allowed to sell securities in the state
11 of these crypto businesses were able to get for them an online presence but no physical address
Five of the listed companies promised unrealistic returns – a clear indication of fraud, Six of them were running Multi-level marketing (MLM) schemes.
Well, it has been reported that according to the TSSB report, a majority of these companies have smartly aced the digital arena. These schemes are known for their use coins to trade illegal and fraud in digital assets.
Also, as per the reports of TSSB’s “not a single promoter out of 32 promoters of cryptocurrencies which were investigated was registered to sell securities in Texas.”
What was the issue? Well, it was something as small as the Texan authority had problems with the utilization of the word ‘Bank,’ in AriseBank, which is often misleading the people into thinking it was a bank.
Also, there has been a certain allegation against it that it was registered to execute banking activities in the state. However, this was not it. In another case, the enforcement division of the TSSB also issued a Cease and Desist order against DavorCoin, which allegedly swindled Texas residents by offering a crypto lending program that would earn them a monthly interest 48 percent.
The Texas security board is now constantly reminding people that crypto in the USA is still growing up and is not something too established to be easily trusted, and users have to beware about certain things which go on in this market. ‘
There are so many risks associated with cryptos like it’s lack of regulatory framework nationally and internationally, hackers penetrating security systems, unpredictability concerning cryptocurrency prices.
But even after this, people find it one of the best investment in the current markets and still do not shy away from putting money in it.
The bubble of crypto space is growing at a tremendous rate, which simply cannot be curbed now. Here all these new investors in the form of individuals and companies, are entering the space creating a conducive environment for fraud according to the TSSB: “There is no question the evolution of cryptocurrencies provides legitimate businesses with new and exciting means of raising capital and promoting dynamic new technologies. At the same time, however, the Enforcement Division’s investigations revealed that the revolution in digital money is creating an environment ripe for illegal and fraudulent securities offerings.”
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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