Texas State Securities Board takes emergency action against three fraudulent firms 23488 Texas State Securities Board Website
Nitin Murali
Sep 19, 2018 at 11:10 PM

Texas State Securities Board has taken emergency action against three alleged crypto frauds. These frauds are based on the investment schemes used, attempting to defraud local investors.

According to its website's news release, Travis J Iles, Texas Securities Commissioner took emergency action on Tuesday to prohibit the fraudulent investment offerings in these three separate schemes.

The three crypto fraud companies are Coins Miner Investment Ltd, a Russian cryptocurrency investment promoter; DGBK Ltd, a bank that says that it has developed hack proof storage for virtual currencies; and Ultimate Assets LLC, a cryptocurrency and foreign exchange trader.

The Commissioner entered a separate emergency cease and desist orders against all the three fraudulent companies.

According to the first order against Coins Miner Investment Ltd, the company is faking itself to be Coinbase by sending emails to investors. Coinbase is a US based company that operates an online platform for buying, selling, and storing digital currency.

A woman who calls herself Ana Julia Lara falsely claims to work as a cryptocurrency trader at Coinbase along with that she also sends photographs with Ripple’s President but Lara in real life is the vice president of Cointelegraph Media Group.

In the mail, the company mentions itself as based in the UK, but it actually operates in the Russian city of Volgograd.

According to the second order against DGBK Ltd., or Digital bank, the company is canvassing a fund to build a “hack-proof” crypto wallet device.

The company is offering its investors an opportunity to buy its own cryptocurrency, a digital token called DGBK. The company falsely claims that if investors purchase the token immediately can expect a return of 1,900 percent once it gets sold in an ICO in 2019

To promote itself, the firm used a 33-second video of Barack Obama giving a general speech on technological advances which could one day enable hack proof.

According to the third order against Ultimate Assets LLC, the firm is publishing online advertisements asking the residents of the country for their cryptocurrency and foreign exchange trading. The company also tells its investors that an initial investment of $1000 will become $10,000 in just three weeks.

See Also:

U.S. federal judge postpones Patrick McDonnell’s crypto fraud case

Bitcoin mining giant Bitmain to invest in $500M cryptocurrency mining farm in Texas

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