The Texas State Securities Board (SSB) has issued an emergency cease and desist order to a network of cryptocurrency related firms, the SSB reported in an official statement July 12.
SSB commissioner Travis J. Iles in an emergency action on July 11, suspended a group of crypto-related companies that purportedly offered false crypto investments to state residents. As indicated by the order, the companies are instantly suspended from offering securities in Texas until when their faiths are decided.
Three Utah-based crypto companies namely Mintage Mining LLC, Symatri LLC, and NUI Social were listed in the SSB announcement. The announcement sayys Mintage Mining offers unlawful and false interests in cryptocurrency mining. Symatri is said to have issued a recently released coin named Kala and offering investors a chance to obtain Kala-mining equipment. NUI Social, the announcement said, was touted as a multi-level marketing organization with more than 300,000 individuals in 140 nations.
The request also names BC Holdings and Investments, which is supposedly engaged with offers of crypto mining ventures offered by Mintage Mining, and also Houston-based Wyatt McCullough and William Douglas Whetsell, who are partneres with NUI Social.
The order refers to violations of the Texas Securities Act, asserting that the organizations “[made] deceptive claims to the public,” for example, promising “extraordinary returns” of up to 250 percent every year and guaranteeing that the organizations offer the investment in consistence with securities laws. It expresses that Symatri neglected to publicize Kala token points of interest and give info on the dangers of crypto investments.
Recently, the SSB released a report regarding mid-year enforcement highlights, including insurance for “investors from fraudulent cryptocurrency-related investment products.” The SSB was “the first state securities regulator to issue an administrative order” against illicit crypto-related firms in 2017. SSB examinations of crypto-related investments have prompted “nearly 40 pending or completed enforcement actions.”
In February, the SSB issued an emergency cease and desist order to Leadinvest.com, referring to poor disclosure of information about the organization. In January, the SSB issued a similar request against Bitconnect for selling unlicensed securities.