In a move to curb the city of illegal crypto activities, Texas Financial Regulators have said that it has shut down about 15 crypto scams in the city.
In its official statement, the Texas Financial regulator claims that it has been going after a massive pool of fake crypto investment platforms in the last few weeks. According to its findings, the regulators noted that they discovered that 10 out of the 15 investment platforms that were shut down belongs to just one person. In a bid to eradicate the illegal operations of Bitcoin, forex, and binary options platforms across the city, the regulators announced that it had served the 15 firms with a cease and desist order.
Texas Regulators serve platforms with cease and desist orders
In the first list, ten firms out of the 15 firms served with the cease and desist order are Proactive Expert Trading, MaxFX Internal Trade, AntpoolTop Mining, BitcoinFX Options, and a few others. According to regulators, the first ten firms that were served with the cease and desist order were said to belong to James Blundell, which promotes the platforms across all social media.
Moving on to the second list, we have IQTrade, Binary Trade Forex, and FX Trades. As per the official statement from regulators, the second list firms did not undergo the compulsory registration and licensing to sell securities in the state. Regulators also claimed that the firms in question offer clients very promising returns for their low-risk investments, which are usually fake.
Regulators also said that a particular platform known as GeniusPlanDFxPro was named in the third list. The firm claims to have completed verification and holds licenses from various international bodies; a claim that regulators said is untrue. In its final review, the Texas Financial Regulators claimed that one thing that is synonymous with all these firms is the use of social media to lure their unsuspecting clients into investing in the firm.
Scammers use social media adverts to draw in their victims
According to a statement by the Enforcement Director, Joe Rotunda, he noted that those with illegal business have a knack for creating the best adverts that will draw in investors. They will make the advert look like a legitimate investment because they know that their adverts will reach a larger audience and increase their potential victims.
This is not the first time a regulatory body is shutting down various scam platforms; statistics have shown that more than 100 scam platforms are shut down across the world every year. This year has seen the number of scam platforms skyrocket compared to previous years, with most analysts blaming the coronavirus pandemic’s rise.
Regulators worldwide have further warned investors that they should be careful and carry out their research on platforms that offer too good to be true services. A typical move that the scammers employ is that after they have made enough money, they shut down their website, and delete their social media accounts and go into hiding, which means that the cash that has been invested by investors is gone.