Texas regulator cracks down on crypto quick-to-profit schemes targeting local investors

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A regulator in Texas has stepped up actions to halt fraudulent business using multilevel marketing cryptocurrency and forex quick-to-profit schemes to solicit funds from residents. Particularly, the regulator blacklisted the South African-based Mirror Trading, and four other stateside businesses.

Texas stops quick-to-profit schemes targeting residents

The recent notice from the Texas State Securities Board informed that Commissioner Travis J. Iles initiated an emergency action against the South African business. The order is aimed to prohibit the South African crypto and forex quick-to-profit scheme from operating in Texas. It was accused of engaging in illegal operations.

Mirror Trading reportedly solicited funds from Texan investors by hiring multilevel promoters to market their cryptocurrency and forex quick-to-profit scheme. When convinced, investors are led to transfer cryptocurrencies to Mirror Trading, particularly Bitcoin (BTC), according to the report.

These cryptocurrencies are later transferred to several unknown forex brokers, who would trade the cryptocurrencies with the help of artificial intelligence on the forex market. Through this method, the operators of Mirror Trading are able to garner ‘conservatively’ projected 10 percent in profit, on a monthly basis.

However, Commissioner Travis J. Iles explained that:

These quick-to-profits schemes rely on a little bit of smoke and the shine of mirrors. Investors are often promised safe, lucrative returns; but promoters often fail to provide basic, required information to fully inform their prospective investors and satisfy their legal obligations. 

Illegal forex and crypto trading

Following the report, the South African company also concealed critical information about its operations from its customers. The SA business was alleged to have promoted its crypto and forex quick-to-profit scheme via an illegal marketing program. More so, it made use of unregistered securities salespersons to recruit more potential investors and markers.

The other blacklisted multilevel marketers are namely Michael Cullison, Brian Knott, ForexAndBitcoin.com, and Steve Herceg. They were flagged for not registering securities with appropriate authorities. For this reason, the commissioner said the illegally solicited funds from local investors.

Joe Rotunda, a law enforcement officer, added that the recent action from the regulator was issued to “quickly stop the illegal scheme before it irreparably harms Texans.”

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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