The State Securities Board presents these resources to help investors navigate the minefield of investment offerings tied to cryptocurrencies. 

Although the world of virtual currencies – with thousands of different currencies, and terms such as blockchain, initial coin offerings, tokens, and mining – may appear to be exciting and revolutionary, investors should exercise the same caution and due diligence as they do with any other investment opportunity.

Enforcement Report: Widespread Fraud Found in Cryptocurrency Offerings

This Investor Alert from the Texas State Securities Board highlights the results of a four-week "sweep" by its Enforcement Division into investment offerings that were tied to virtual currencies.  Enforcement Division attorneys and investigators conducted the sweep in response to a sharp increase in the number of securities offerings marketed to Texans. The investigation targeted promoters who appeared to be illegally and fraudulently using online advertisements, social media, and other public solicitations to attract Texas Investors.

Federal Trade Commission WorkshopDecrypting Cryptocurrency Scams

Joseph Rotunda, director of the Enforcement Division of the Texas State Securities Board, participated in a FTC workshop June 25 as part of a panel of regulators, academics, and consumer advocates addressing the problem of fraudulent promoters taking advantage of increasing consumer interest in cryptocurrency-related investments. 

Enforcement Orders

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 14 orders, the most of any state. Click on the company name to read the news release on the action and the order itself.

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