Texas State Securities Board Shut Down 16 Fraudulent Crypto Projects

Wilfred Michael 

Wilfred Michael

News reporter

08 February 2019,
Texas State Securities Board Shut Down 16 Fraudulent Crypto Projects

U.S State, Texas was among the regions hit by the increase in the number of crypto crime incidents across the world in 2018.

In its annual enforcement report for the past year, the Texas State Securities Board (SSB) revealed that it sanctioned 16 fraudulent crypto related schemes by 60 different entities, while most of the offenders sold unregistered securities.

As per the report, these crime perpetrators relied on the anonymity of the internet and the extensive reach of social media to market their fraudulent schemes to Texas State residents and other unsuspecting global investors.

The report notably mentioned the emergency order issued by the SSB to BitConnect, a fraudulent cryptocurrency investment scheme that was busted in January. It was after the SSB’s cease order that the project lost several of its followers including its roughly $2.6 billion market cap.

About the BitConnect incident, we reported last month that assets belonging to the project’s major promoter, John Biggaton was seized by Australian authorities while his wife went mysteriously missing.

The SSB said it relied on its collaboration with local and international enforcement agencies to haunt down crypto-related fraudulent schemes and vowed to continue working hard to protect Texas investors.

The effort of regulators in Texas to curb crypto crime has not stopped authorities in the region from figuring out how to regulate the emerging industry. In early January, the Texas Department of Banking released a supervisory framework detailing how it viewed the different forms of cryptocurrencies current in circulation.

It is hoped that the preliminary legislative piece will be just enough to guard the industry while the State waits for regulation of the industry at the federal level.

Meanwhile, global regulators have continued to protect unsuspecting investors from fraudulent crypto-related schemes. In December 2018, Italian and Belgian Securities regulatory bodies recorded success in this regard.


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