U.S. security regulators, the Texas State Securities Board [TSSB], has detected another group of an illegal cryptocurrency scam.
Earlier on 3rd Sept., Texas Securities Commissioner Travis J. Iles entered an Emergency Cease & Desist Order against two alleged cryptocurrency scam schemes referred to as Forex Birds & PEK Universe.
The published order names Kumar Babu Bondesi & Darwin Eric Balusek as the alleged operators of the schemes. Consistent with the TSSB, Balusek is also known by the nickname “Bitcoin Pope.”
Operating abroad, the respondents are accused of illicit securities offerings linked to forex and cryptocurrencies, the authority said. Consistent with the TSSB, Forex Birds was allegedly promising investors earnings up to 11%, with deposits up to $1 Mln. Forex Birds is additionally accused of misleading investors by claiming to be registered with several authorities in Europe & Australia.
Pek Universe, the alleged promoter of crypto programs, was promising to earn daily profits for investors – up to around 2% per day for 30 days. Both Forex Birds & Pek Universe weren’t registered to deal in securities in Texas, the regulator added.
In line with the official order, the respondents face a $10k fine or 2 to 10 years of imprisonment or both. The respondents must request a hearing with the regulator before 31st Sept. At the reporting time, both Forex Birds and Pek Universe websites are still intact.
The Texas State Securities Board is one of the foremost active regulators within the United States in terms of the cryptocurrency industry. The authority is understood as the primary state securities regulator within the United States to enter an enforcement action against a cryptocurrency-related firm. Earlier in July this year, the TSSB terminated Mirror Trading International, an MLM cryptocurrency scam scheme operating from South Africa.