The Texas State Securities Board (TSSB) is taking emergency action against cryptocurrency scammers, peddling fake endorsements and posing as well-established blockchain services.
In a statement from yesterday, TSSB Commissioner Travis J. Iles revealed the board has issued a cease and desist letter for three cryptocurrency businesses. The suspected businesses are currently under investigation.
The TSSB claims that Coins Miner Investment, DGBK Ltd, and Ultimate Assets LLC have been duping potential customers with incorrect, false, and totally misleading information.
“According to the Emergency Cease and Desist Order, Coins Miner is manipulating its email solicitations to make them appear as if they came from Coinbase,” the statement reads.
This company is also promoting itself by brandishing around social media a 33-second video of Barack Obama supposedly endorsing its products.
Finally, the cease and desist outlines the alleged wrongdoing of Ultimate Assets LLC.
This includes making outlandish claims that investors can turn $1,000 into $10,000 in a matter of three weeks. While the company claims to offer guarantees on initial investments, it is not warning investors that their capital is at risk, and so, is committing fraud.
What’s more, Ultimate Assets appears to be a phantom company, it is not located at the address it states as its headquarters.
This is even more damning considering that a report from New York state’s attorney general has declared that even legitimate cryptocurrency businesses do not offer enough protections for their customers.
These are all good arguments for not trusting anyone in the cryptocurrency market. If you absolutely must place your trust in a person, business, or entity, do your own research and be strict with due diligence.