The Texas State Securities Board has crackdown on 14 investment platforms, including crypto firms, forex, and binary options investment. The investment firms operated within Texas under pretense.
A desist order issued against one James Blundell revealed that he operated ten fake crypto platforms in Seabrook, Texas.
Texas State Securities Board accused Blundell of scamming unsuspecting victims using several social media platforms. Blundell allegedly lure victims with a pseudo-Facebook, Instagram, and LinkedIn account.
According to Texas State Securities Board, Blundell offered his victims purchase investments in a plan for $10,000 to $1,000,000 and receive a profit of 80 percent per hour for 24 hours. Other reduced investment plans price between $500 and $9,999, and investors get between 42 percent and 60 percent returns every hour.
Texas State Securities Board further accused Blundell of using images of his binary options trading license issued by Texas City and a local driver’s license, all of which are forged. These allegations are different from his fraudulent crypto and forex charges.
Texas State Securities Board charges against other fraudsters
The board’s second emergency action was against Binary Trade Forex, FX Trades, and IQTrade. They all operated at Valentine, Texas.
All three accused firms say that they are e-gaming firms. They deceive victims claiming to be regulated by the Isle of Man Gambling Supervision Company.
Unlike Blundell, they offer investment plans ranging from $500 to $10,000, and investors get around 30 percent to 120 percent return daily.
However, Binary Trade Forex, FX Trades, and IQTrade are regulated by Texas State Securities Board, the regulators confirmed. However, they are not licensed to sell securities in Texas and have not registered for it.
Online investment scourge
Texan securities commissioner Travis J. Iles warned that with these series of scams, online investments remain risky.
He urged investors to investigate investment opportunities before staking on such opportunities thoroughly.