The Texas State Security Board (TSSB) has published its list of “Top Investor Threats in 2020 – and How to Avoid Them.” Included on the list are crypto offerings.

The TSSB is the securities regulator for the state of Texas. The regulator has been active in the pursuit of nefarious offerings in the crypto sphere.

According to the TSSB, the cryptocurrency threat is described as follows:

RISKS TO INVESTORS: Cryptocurrency offerings are extraordinarily volatile—meaning risky—and almost impossible for a layperson to understand.

Investments tied to cryptocurrency hit everyone’s radar in 2017 when the price of one bitcoin reached a record high of $19,891, an increase of 1,800% for the year. But less than two months later, the price had dropped to $6,846. Cryptocurrency prices continue to be in a constant cycle of boom and bust.

Promoters of these investments look to take advantage of people who are swayed by the idea of virtual currencies as a quick path to wealth.

Even seniors and retirees, who traditionally prioritize security over speculation, are being persuaded to invest in initial coin offerings and cryptocurrency mining pools.

The TSSB recommends that you determine some basic facts before you invest in any crypto offerings (if at all). The regulator advises making certain that real people are involved with a real location. Good advice. Additionally, under state law, securities offerings must be registered with the state regulator. You should also request audited records and other financial info to back up any claims.

If your money is stolen, you are pretty much out of luck – something we have seen played out time and time again.

If you are curious as to how many, and which issuers, have been the target of TSSB enforcement actions, the regulator has compiled a nice list for you to review. You can view them all here or below. Don’t mess with Texas.


Enforcement Actions

The Texas State Securities Board was the first state securities regulator to enter an enforcement order against a cryptocurrency firm and to date the Securities Commissioner has entered 26 administrative orders involving 79 individuals and entities.

2017

Dec. 20: USI-Tech Limited

2018

Jan. 4: BitConnect

Jan. 24: R2B Coin

Feb. 3: DavorCoin

Feb.15: Investors in Crypto LLC

March 5: LeadInvest

April 5: Financial Freedom Club Inc., 911MoneyStore Inc., Capital Cash, Estrada Trucking Inc., Caleb Estrada Vasquez, Mark J. Moncher,  Frank Dalotto

May 8: Bitcoin Trading & Cloud Mining Ltd.

May 8: Forex EA & Bitcoin Investment LLC

May 15: Wind Wide Coin Inc.

June 11: Mintage Mining, Symatri LLC, NUI Social, Wyatt McCullough, William Douglas Whesell

Sept. 18: Coins Miner Investment Ltd. AKA Coins Miner and Ana Julia Lara

Sept. 18: DGBK Ltd. AKA DigitalBank, Tim Weiss, Ranka Romic, and Kim Joseph Manning

Sept. 18: Ultimate Assets LLC, Daniel Dishmon, John Jason Woodard

Nov. 6: AWS Mining PTY Ltd, MyCoinDeal, West Texas Oilfield Cloud Miners Club, et al.

Nov. 6: EXY Crypto, Morgan Nolan, Rafael Logan, Melissa Spring

Nov. 27: My Crypto Mine and Mark Steven Royer

2019

Feb. 21: Mintage Mining LLC, BC Holdings and Investments LLC DBA Mintage Mining, Social Membership Network Holding LLC, NUI Social, and Darren Olayan

April 9: FxBitGlobe AKA FX Bit Globe Ltd AKA FxBitGlobe Trading Co. FKA Fidelity Trading Co.

June 28: Mikhail Rania Safiya

June 28: Madeline O’Farrell

June 28: Tint X Mining Pool and Maxi Samantha Fortune

Aug. 2: AWS Mining PTY LTD, Automated Web Services Mining AKA AWS Mining, Daniel Beduschi, Alexandre Campos, and MyCoinDeal: Rescission Offer

Aug. 6: Forex and Bitcoin Trader AKA Forex & Bitcoin Traders

Oct. 15: PK Crypto Investment AKA PK-Crypto Investment; Peggy Kay Brendan; and Janet A. Osborn

Oct. 15: Crypto Miner Limited AKA Cyp Miner Limited AKA Cyp Miner and Elizabeth Frazier





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