The State Securities Board of Texas has halted an alleged crypto trading scam business, which promised pay back 100 percent of the amount invested. The business was operated by Nickolas Steele, who reportedly managed the business using about three names in order to mislead the suspecting investors, according to the report.
Alleged crypto trading scam by Steele
The Texas authority notes that the alleged crypto trading scam poses an immediate danger for the residents. Hence, it had issued a cease and desist order to shut down the business, which was highly promoted on a Facebook page owned and operated by Steele.
Steele solicited investments starting from $5,000 to $50,000 for the alleged crypto trading scam business. He touted his offer on the Facebook pages named TheCryptoFacts and craigslist, where he promised potential investors of gaining double their investment.
Per the order issue by State authority, Steele claimed to pay off the potential investors after 12 months. However, the State Securities Board considers Steele’s business as a potential danger to the residents, adding that he violated the Texas Securities Act.
Steele changed his description to a consultant
Upon warning Steele about the alleged crypto trading scam business, he reportedly changed his description to “consultant,” in order to prevent being scrutinized by the Texas Authorities. Steele also charged up to 20 percent as a fee from investors for the “trade consulting profits.”
He also continued to operate the alleged crypto trading scam, saying he would trade digital currencies on behalf of the potential investors. At that time, Steele claimed that the pandemic, which resulted in the economic meltdown, brought a massive increase for his digital currency trading service.
Per the authority, Steele had mixed his personal and investment funds, while claiming otherwise. He used the money on online dating platforms for expenses that are not related to crypto trading, restaurants, and others.