In line with a recent ‘2018 enforcement report’ published, the Texas SSB [State Securities Board] has issued around 16 orders against suspected cryptocurrency scam investments schemes in 2018.
Targeting actors tempting Texas residents with several investment schemes, the SSB stated it had successfully cited a total of sixty individuals and entities over the twelve-months period that reportedly sold-out unregistered security entities.
Scams enclosed the now-infamous ‘BitConnect‘, which was an investment scam racket that lost almost its entire market capitalization after a string of revelations concerning its authenticity globally.
“The promoters of cryptocurrency-related scam offerings are taking advantage of the obscurity of the web to draw in victims, weaponizing social media to link with investors in Texas,” the report further adds, stating:
“Earlier in 2018, the SSB entered 16 official orders against promoters of suspect cryptocurrency investments who were employing on-line advertisements, social media, along with alternative solicitations to cooperative law enforcements.”
The report additionally highlights the increasing partnership activities between the SSB and native law enforcement in tracing down and bringing accusers to justice.
Nationwide, the U.S. continues to target strictly illegitimate offerings involving cryptocurrency and securities. A preoccupation of interstate regulator the SEC [Securities and Exchange Commission], some states have taken a tough line on ‘scams‘, despite the ‘patchwork‘ restrictive landscape around cryptocurrencies more widely.
Earlier in Apr. last year, the SSB was also trying around 30 cryptocurrency ‘schemes‘ active within the Texas borders.