The Texas State Securities Board (TSSB) has served emergency cease-and-desist orders to two cryptocurrency companies that it believes are likely to be operating scams, BTCRUSH and Forex EA & Bitcoin Investment LLC.
BTCRUSH is a website based in the United Kingdom purportedly run by Jaylon Cross, Bruce Rodgerson, Robin Lozinski, and Thomas Johnson, likely to be aliases. They offer cryptocurrency mining investments that pay 4.1% daily on whatever amount a user deposits, with profits paid out every minute.
Such fast profits are not possible from cryptocurrency mining, indicating that BTCRUSH is not a real cloud mining site. It has all the indications of being a classic Ponzi scheme where users are being paid profits from deposits of other users, which inevitably ends in a panic where lots of users try to withdraw their cryptocurrency but cannot since the money isn’t really there.
Forex EA & Bitcoin Investment LLC is a company based in New York City that claims to be run by likely aliases James Butcher and Richard Dunn. This cryptocurrency company offers 1,000% returns in 21 days, supposedly through profits made via the forex and cryptocurrency markets. While it is theoretically possible to make such profits trading cryptocurrency, it is impossible to do that consistently. The company goes as far as promising money will be refunded if there is any loss.
BTCRUSH and Forex EA & Bitcoin Investment LLC must immediately stop offering investment services to the citizens of Texas after receiving the cease-and-desist order. Violating this order can result in a USD 5,000 fine and two years in the Texas State prison. The companies can request a hearing within 31 days to set aside or modify the order.
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