Cryptocurrency Enforcement

Enforcement Actions

The Texas State Securities Board was the first state securities regulator to enter an enforcement order against a cryptocurrency firm and to date the Securities Commissioner has entered 26 administrative orders involving 79 individuals and entities.

 

2017

Dec. 20: USI-Tech Limited

2018

Jan. 4: BitConnect

Jan. 24: R2B Coin

Feb. 3: DavorCoin

Feb.15: Investors in Crypto LLC

March 5: LeadInvest

April 5: Financial Freedom Club Inc., 911MoneyStore Inc., Capital Cash, Estrada Trucking Inc., Caleb Estrada Vasquez, Mark J. Moncher,  Frank Dalotto

May 8: Bitcoin Trading & Cloud Mining Ltd.

May 8: Forex EA & Bitcoin Investment LLC

May 15: Wind Wide Coin Inc.

June 11: Mintage Mining, Symatri LLC, NUI Social, Wyatt McCullough, William Douglas Whesell

Sept. 18: Coins Miner Investment Ltd. AKA Coins Miner and Ana Julia Lara

Sept. 18: DGBK Ltd. AKA DigitalBank, Tim Weiss, Ranka Romic, and Kim Joseph Manning

Sept. 18: Ultimate Assets LLC, Daniel Dishmon, John Jason Woodard

Nov. 6: AWS Mining PTY Ltd, MyCoinDeal, West Texas Oilfield Cloud Miners Club, et al.

Nov. 6: EXY Crypto, Morgan Nolan, Rafael Logan, Melissa Spring

Nov. 27: My Crypto Mine and Mark Steven Royer

2019

Feb. 21: Mintage Mining LLC, BC Holdings and Investments LLC DBA Mintage Mining, Social Membership Network Holding LLC, NUI Social, and Darren Olayan

April 9: FxBitGlobe AKA FX Bit Globe Ltd AKA FxBitGlobe Trading Co. FKA Fidelity Trading Co.

June 28: Mikhail Rania Safiya

June 28: Madeline O'Farrell

June 28: Tint X Mining Pool and Maxi Samantha Fortune

Aug. 2: AWS Mining PTY LTD, Automated Web Services Mining AKA AWS Mining, Daniel Beduschi, Alexandre Campos, and MyCoinDeal: Rescission Offer

Aug. 6: Forex and Bitcoin Trader AKA Forex & Bitcoin Traders

Oct. 15: PK Crypto Investment AKA PK-Crypto Investment; Peggy Kay Brendan; and Janet A. Osborn

Oct. 15: Crypto Miner Limited AKA Cyp Miner Limited AKA Cyp Miner and Elizabeth Frazier

Emerging Investor Threat: Cryptocurrency Offerings

The TSSB has found widespread fraud in securities tied to cryptocurrencies.

Read the results of a four-week investigation in 2017-2018 into crypto offerings and ongoing enforcement efforts.

Video Resources

Understanding ICOs and other cryptocurrency offerings (North American Securities Administrators Association)

Enforcement Director Joe Rotunda discusses fraud in crypto-related securities offerings:

Combatting Cryptocurrency Fraud: CFTC FinTech Conference,  Oct. 3-4, 2018

Decrypting Cryptocurrency Scams: FTC Workshop, June 25, 2018

Blockchain Is Not What You Think It IsCesare Fracassi of the University of Texas Blockchain Initiative explains the theory and science underpinning blockchain and how it's being used.