A lot of companies have ventured into the cryptocurrency space but not all of them have honest intentions. In this regard, the Texas State Securities Board is forcing various companies indulging in illegal crypto activities to cease and desist immediately.
Texas Cracks Down on Fake Crypto Offerings
Various companies active in the state of Texas recently received a cease and desist letter due to the fact that their current business model was in violation of the Texas Securities Act. There are also concerns over potential fraud, which is a very real problem when it comes to the Bitcoin industry.
Three particular firms have been targeted in this recent probe. One company claims to sell cryptocurrency mining hardware, whereas the others are involved in facilitating ‘reward schemes’ as well as other crypto marketing ventures. All three companies are controlled by a group of individuals who are on the radar for allegedly defrauding investors.
Since all of the aforementioned companies offered investment contracts which were clearly securities, not registering with the proper authorities further confirms nefarious intent.
Any cryptocurrency offering needs to be scrutinized first and foremost. A lot of companies claim they offer legitimate services and products, but some of them are clear scams. In the case of these three companies, it is evident a lot of legal aspects have been neglected. That doesn’t necessarily make the offerings fraudulent, although the people behind these ventures should have taken the necessary precautions.
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