August 15, 2020 | AtoZ Markets – Texas Securities Commissioner Travis J. Iles on Friday entered an emergency cease and desist order to stop South African firms from fraudulently recruiting Austin residents to participate in a cryptocurrency credit card scheme.
Is Liquidity Gold Trust scam or reliable?
The cease and desist order targets Lance Angus Jerrard and his companies, Liquidity Gold Trust, Liquidity Gold Solution LLC, as well as Liquidity Global Card Solution (PTY) LTD. Authorities accuse the company of running advertisements on 590 AM KLBJ Radio. This radio station broadcasts in Austin, Texas, and promotes the crypto scheme.
The cease and desist order also accuses the South African company of promoting the crypto scheme through internet websites and social media, such as Facebook, LinkedIn, and Twitter. Their pitch is built on cutting-edge blockchain technology and cryptocurrencies.
According to the order, the companies are promoting the Liquidity Card, claiming it is a Mastercard that functions like a traditional debit card. The Liquidity Card, however, works with stablecoins. These are cryptocurrencies pegged to fiat money or other assets to minimize price volatility. However, in this case, the Liquidity Card purportedly works with USD Coin, TrueUSD Coin, and PAX Coin.
Crypto scams surge amid covid-19 pandemic
Crypto scams continue to rise amid the global pandemic across countries. Earlier, the Attorney General of California issued a warning against the rise of crypto scams amid the covid-19 pandemic. California’s Attorney General Xavier Becerra tweeted:
“Fraudsters often rely on the excitement of innovative industries to persuade people to offer up their cash in hopes of earning far more in return.”
There are several types of crypto scams that have become frequent. They include fake giveaways, sextortion, fake exchanges, fake ICO’s, bitcoin recovery, video scams, as well as pyramid schemes. For example, accounts of several famous people on Twitter were hacked to solicit bitcoins from their followers.
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