Texas halts Mind Capital over alleged fraudulent trading schemes for its token

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Texas authorities have stopped Mind Capital from operating in the state, over alleged involvement in a pyramid scheme and fraudulent trading schemes of its utility token dubbed MCcoin. Recently, the authorities cracked down on dubious companies in the state, halting the operations of crypto businesses that were allegedly operating with illegal marketing schemes.

Mind Capital alleged involvement in MCcoin fraudulent trading scheme

Recently, emergency action was brought against the cryptocurrency company by Securities Commissioner Travis J. Iles. At first, the Commissioner mentioned that the company enables its investors to engage in a crypto-fiat arbitrage trading program using MCcoin. Mind Capital also claimed that the trading program could generate an 0.5 to 1.5 percent profit daily.

However, the Commissioner faulted such programs saying most cases would involve fraudulent trading schemes. 

“These schemes can be dangerous,” said Commissioner Iles. “Although promoters may boast about the successes of these platforms, potential investors are rarely afforded the opportunity to verify their claims – or even determine whether the applications actually exist.”

Texas continues crackdown on illegal marketing schemes

Besides the alleged involvement in a fraudulent trading scheme for the MCcoin, the Commissioner also claimed that the crypto company conducted a ten-level pyramid marketing scheme to promote more investment. Craig Kintzel, a Georgetown resident, was accused in the regulator’s order for participating in the promotion of the scheme in the state. 

More so, none of MCcoin operators are licensed as agents or dealers in the states. Besides, the alleged fraudulent trading scheme (crypto-fiat arbitrage trading) is not permitted in Texas. The order went on to inform that the operators had concealed their main identity from their business investors.

Mind Capital adds to the list of investment companies to be halted by the Texas Securities regulator. Recently, Mirror Trading was halted from operating in the state, although the company refuted all the accusations from the regulator.

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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