Texas Regulators Investigating Russian Crypto Firm

- Advertisement -

September 19, 2018 10:40 PM

Another day, another alleged crypto scam.

A Russian cryptocurrency mining firm is currently under investigation by the Texas State Securities Board for allegedly misrepresenting itself and its supporters to solicit funds from Texas residents, according to a September 18 press release.

Texas Securities Commissioner Travis J. Iles issued an emergency cease and desist order to the Russian-based crypto mining firm, Coins Miner Investment Ltd., based on a number of unscrupulous practices.

Coins Miner Investment Ltd. is accused of “spoofing” email addresses of US-based cryptocurrency exchange Coinbase to make it appear as if that exchange endorsed the company. No proof of endorsement by Coinbase could be verified.

The company is also under investigation for sending prospective investors a photograph in which a person connected to Coins Miner Investment Ltd. named Ana Julia Lara falsely represents herself as an employee of Coinbase. The company told potential investors that the picture is of her with the president of Ripple. However, the person identified as “Lara” in the photo is actually a vice president of CoinTelegraph Media Group.

- Advertisement -

Additionally, Coins Miner Investment Ltd., based out of Volgograd, Russia, is also under investigation for using a false UK address.

On top of these charges, the company is accused of using stock footage and pictures intended to falsely depict its “expert team,” the interior of its headquarters, and its computer hardware. The company allegedly superimposed its own logo onto a video of a Fortune journalist talking about cryptocurrency to give investors the idea that Fortune supported the company. Fortune does not.

On top of all that, according to the press release, “The Coins Miner investments are securities under Texas law, but the offerings are not registered for sale in Texas and neither Coins Miner nor Lara are registered to sell securities.”

- Advertisement -

The Texas State Securities Board issued cease and desist orders to two other crypto-related companies yesterday: one to Ultimate Assets LLC and another to DGBK Ltd. Both companies are under investigation for violating Texas securities laws and misrepresenting themselves and their sponsors. 

Texas has been active in shutting down cryptocurrency scams. In May, ETHNews reported on the North American Securities Administrators Association’s coordinated investigation into fraudulent cryptocurrency schemes, dubbed Operation Cryptosweep. The Texas State Securities Board is spearheading the operation, which involves over 40 state and provincial regulators across the US and Canada.

Nathan Graham is a full-time staff writer for ETHNews. He lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.

Like what you read? Follow us on X @Bitnewsbot to receive the latest Texas State Securities Board, Coins Miner Investment or other Ethereum law and legislation news.



Previous Articles:

- Advertisement -

Latest News

Bitcoin Whales Move 20,000 BTC Worth $2B, Stir Market Speculation

Two major Bitcoin wallets transferred 20,000 BTC, valued at over $2 billion, to new...

Nissan Recalls 480,000 Vehicles; Stock Surges Despite Engine Issue

Nissan is recalling over 480,000 vehicles in the U.S. and Canada due to engine...

Bitcoin Risks $2.67B in Longs if Price Falls Below $108K Level

Bitcoin's price approaches its all-time high, with traders watching for signs of a breakout...

CrowdStrike Stock Hits Record High After Analysts Hike Price Target

CrowdStrike Holdings (CRWD) stock reached an all-time high with a gain of more than...

Amber International Raises $25.5M to Grow $100M Crypto Reserve Fund

Amber International Holding raised $25.5 million in a private placement to expand its $100...

Must Read

What Is the Dencun Upgrade for Ethereum?

The Dencun Upgrade for Ethereum is poised to revolutionize the blockchain landscape, offering improved scalability, efficiency, and groundbreaking features. Set to launch at the...