Three crypto platforms have been found by the Texas authorities to be operating fraudulent schemes by duping crypto investors in the state. Following this, the Texas securities commission has called for these fraudulent investment platforms to cease operations.
A cease and desist order was entered by Travis J. Iles, Texas Securities Commissioner in emergency, which targeted the three sham platforms. The sham platforms were running unregistered crypto investment platforms online. Namely, these fraudulent platforms are Binance Assets which is better known as Delta Crypt Ltd., Digitally Invest, and lastly Fxsmart Robots.
Digitally Invest is not to be mistaken with the legit Digital Invest. The former is a sham company that has skillfully and intentionally kept a name similar to the former.
According to the order of the commissioner, none of the sham crypto investment companies were registered to sell securities. Moreover, even the platforms’ investment plans are neither certified for sale in Texas nor recognized as registered.
It is pertinent to mention that the Securities and Exchange Commission of the Philippines has formally cautioned against the sham Delta Crypt. Delta Crypt professes to be a genuine business registered in the UK. The Southeast Asian commission cautioned that the sham organization was unlawfully presenting securities that would bring ludicrous returns. The commission advised the public to be conscious of such schemes and not invest in any scheme offered by Delta Crypt. It further urged those who had already invested to stop doing so.
The Texas authorities order revealed that after a prior warning was issued to Delta Crypt, it deactivated its website. And as opposed to closing down its operations it started another online venture under the pseudonym Binance Assets, Binanceassets Ltd., and Bit Kind Ltd.
The sham company is currently promoting a collection of crypto token investment plans. For instance, guaranteeing a 30% return on Gold Plan, while on Diamond Plan it promised a return of 40%.
It was found in the order of the Texas commissioner that Delta Crypt’s crypto offering was fraudulent and deceptive. The company was accused of hiding significant information regarding its principals coupled with the admonition from the government of the Philippines. It also concealed risks related to digital forms of money i.e. cryptocurrency. Furthermore, the order states that Delta Crypt had illegally been imploring sales agents. They promised that agents with payment of commissions while paying little heed to registration or obtaining license.
The other two fraudulent platforms, namely Digital Invest and Fxsmart Robots are running almost identical websites to that of Delta Crypt. Both the platforms offer investment plans similar to Delta Crypt. Even the return on investment offered is identical – 30% return on Gold Plan, and 40% return on the Diamond Plan.
With regards to Digitally Invest and Fxsmart Robots, the commissioner explained that these companies too concealed substantial information.