The Texas State Securities Board (TSSB) issued a pair of emergency cease and desist orders on Monday against three unregistered cryptocurrency and FX investment platforms. The watchdog ordered Delta Crypt Limited, Digitaly Invest and FxSmart-Robots to cease operations immediately, alleging that the investment fraudsters are basically operating double-your money scams.
Texas Securities Commissioner flagged the unauthorized investment-solicitation of Delta Crypt, which was allegedly involved in a phony cryptocurrency scheme. The TSSB said the firm illegally sold investments with the promise of high returns over a short period of time using artificial intelligence and other technologies.
In its charge sheet, the commission alleges that Delta Crypt is operating under various names, having recently rebranded its fraudulent operation as Binance Assets, BinanceAssets LTD and Bit Kind LTD. It added that the company’s promise of ridiculous rates of return with little or no risks should be flagged as a scam.
According to today’s order, Delta Crypt is now advertising cryptocurrency investments in various plans. “The pitch is relatively simple – invest a little, gain a lot, and don’t worry about risk. In fact, the ‘Gold Plan’ pays a guaranteed 30% return and the ‘Diamond Plan’ pays a guaranteed 40% return,” the notice further explains.
Additionally, a second emergency action names FxSmart-Robots for promoting too-good-to-be-true cashflow for their investments, touting the profitability of a trading program tied to forex, commodities and stocks.
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FxSmart-Robots, which also goes by the name Digitaly Invest, promotes Gold and Diamond plans which falsely claim that potential clients could reap guaranteed returns of 30% and 40%, respectively.
According to a non-appealable cease and desist order, the Texan regulator investigated compliance with the registration requirements of the federal securities laws. The order states that the operatives of Delta Crypt, Digitaly Invest and FxSmart-Robots are not registered with the federal or state regulators as dealers. Therefore, they are engaged in fraud in connection with the sale of the securities to Texans.
Finally, Commissioner Iles notes that get-rich-quick schemes gain momentum, elaborating that several recent cases have involved fraudulent trading built around alleged new artificial intelligence or secret software.
“Bad actors continue to use online means – such as internet websites and social media platforms – to broadly market ‘risk-free’ scams to Texas investors. These folks flock to the Lone Star state and investors should be very wary of promoters touting guaranteed lucrative returns through online media and thoroughly investigate any offering before investing their money,” Iles added.