The Texas Securities Commissioner has issued emergency orders to prevent three cryptocurrency investment platforms from deceiving investors in the state. One system is operated under the name “Binance Assets”. The regulator has found that all three platforms are fraudulent.
Texas is trying to stop 3 crypto platforms in the state
Texas securities commissioner Travis J. Iles filed two injunctions on Monday for three unregistered online cryptocurrency investment platforms. These are Delta Crypt Ltd. (also known as Binance Assets), Fxsmart Robots, and Digitaly Invest. The latter is not the same company as Digital Invest or Digital Invest.
The agent’s order emphasizes that none of the platforms are registered for the sale of securities in Texas and their investment plans are not registered or approved for sale in the state.
The Philippine Securities and Exchange Commission previously issued a public advisory ordinance against Delta Crypt, which claims to be a UK incorporated company. The Southeast Asian regulator warned that the company “illegally offers securities that” pay ridiculous “returns” and urged the public not to “invest or stop investing in any system offered by Delta Crypt”.
Following the publication of the previous warning, Delta Crypt allegedly removed its website and instead started a new online investment program – this time under the names Binance Assets, Binanceassets Ltd. and Bit Kind Ltd.
The company is now promoting a variety of cryptocurrency investment plans. For example, the gold plan pays a guaranteed return of 30% and the diamond plan pays a guaranteed return of 40%.
The Texas commissioner’s order stated that Delta Crypt’s crypto offering is “fraudulent and misleading”. She accused the company of “hiding important information about its clients, the warning from the Philippine government and the risks associated with cryptocurrencies.” In addition, “Delta Crypt has illegally requested sales representatives and promised to pay commissions regardless of registration or license,” the order says.
The second order names Digitaly Invest and Fxsmart Robots, two investment programs whose websites are almost identical. The two platforms similarly offer investment plans with guaranteed returns, including the Gold plan that pays a guaranteed return of 30% and the Diamond plan that pays a guaranteed return of 40%. Both websites claim to offer cryptocurrency trading.
The Texas Securities Commissioner found the two platforms’ claims to be fraudulent and stated:
The parties allegedly hide important information – including the identity and qualifications of the clients, material financial information and the significant risks associated with the underlying products.
What do you think of Texas issuing orders to stop these fraudulent crypto programs? Let us know in the comments below.
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