Texas regulator TSSB issued an emergency cease and desist order against a fraudulent cryptocurrency scheme using the Binance brand to lure investors.
March 16, 2021 | AtoZ Markets – The Texas Securities Board (TSSB) has issued emergency orders to terminate three unregistered cryptocurrency projects. One of them operated under the brand name of the bitcoin exchange Binance, according to a press release.
TSSB warning against Binance Assets
In particular, the TSSB issued a warning against Delta Crypt Limited platform, registered in the UK. According to the regulator, in April 2020, this platform caught the attention of the Philippine regulator for “illegal placement of securities.”
After the warning, the company removed the site but continued to operate under different names: Binance Assets, BinanceAssets LTD, and Bit Kind LTD. The platform currently offers investments in digital assets and promises a return of 30-40%.
The Texas regulator found Delta Crypt’s proposal fraudulent and misleading. The TSSB also accused the company of concealing a warning from the Philippine authorities and the risks associated with cryptocurrencies.
The state has taken similar steps for the Digitaly Invest and FxSmart projects. The regulator noted that the companies concealed important information, including the identity of the leaders.
“Digitaly Invest misrepresented the location of its offices and illegally hired sales agents to promote its securities,” the statement said.
This is not the first time a Texas regulator has taken action against dubious cryptocurrency companies. In 2017, the council through the court obtained the suspension of the activities of USI-Tech Limited, accusing it of illegally promoting investment bitcoin products.
In 2018, the TSSB issued a regulation regarding the Bitconnect cryptocurrency project. Later, the regulator eliminated a fraudulent mining scheme worth $18 million.
Recall that in November 2020, the TSSB issued three emergency orders to terminate the activities of 14 cryptocurrency companies.