At the end of last year, a loud crypto fraud case shocked Texas. Here, the Securities Board had to do a great job – during 2018, the regulator had to issue sixteen orders to terminate companies that attract investors to buy cryptocurrencies that do not have permissions and licenses.
BitConnect has become the most notorious of all these 16 companies. Texas’s Extraordinary Action helped drive this fake project – in the end, the cumulative market capitalization was $ 2.6 billion. But the trouble is for investors – BitConnect soon lost 99% of its market share. As early as January 4, 2018, the report on the enforcement of the termination of BitConnect activities stated:
“The fraudulent organization has encouraged investors to use real Bitcoin to invest in various BitConnect programs. As part of one of the services, which was called the loan program, customers had to buy their own company coins, which were supposed to bring them a profit of up to 40% per month. The Securities Commissioner found that these investments were securities, but they were not registered in accordance with the requirements of the Securities Act and the rules and regulations of the State Board of Securities of Texas. Another violation is that BitConnect has no registration for the sale of any securities, including its own production. ”
Interestingly, it is in Texas that crypto fraud thrives most – nowhere else have so many cases been recorded in 2018. In relation to 16 companies and 60 people, measures were taken. The Securities Board warned the public by issuing such a statement regarding these crypto fraudulent schemes:
“The organizers of such criminal companies enjoy one indisputable advantage – the presence of anonymity on the Internet. To attract their victims and communicate with them, they use social networks, online advertising and other well-known Internet marketing methods. The commissioners had to stop the activities of 16 companies operating in Texas. Be careful in choosing how to invest your money online. “
Editor of IMD News