Texas Regulators Target Another Crypto Ponzi Scheme

in #scam7 years ago

On February 2nd of 2018 the Texas State Securities Board put out an emergency cease and desist order against the lending scheme DavorCoin. The filing accuses DavorCoin of issuing unregistered securities with fraudulent and misleading information, similar to Bitconnect, which in turn drew the regulatory board's ire. The TSSB also stated that the project is certainly an investment fraud since they had intentionally hidden much information including their business location and how it is they detailed explanations on how they expected to realize investment gains for their investors.
 
This is the fourth emergency cease-and-desist order of a crypto related firm from the TSSB in just over a month. The acceleration of the crackdown appears to signal that financial regulators are well aware of the scams currently plaguing the crypto space. From pyramids to Ponzi, HYIP and so forth, it really is a wild west mentality in the cutting edge tech world that is cryptocurrency. Since December a total of four scam sites have been ended up in the crosshairs of the Texas agency. On Dec. 21, USI-Tech, a foreign firm offering triple-digit returns from investments tied to Bitcoin mining, was slammed. This was followed by the now infamous Bitconnect memorandum on the 4th of January and Hong Kong-based company R2B on Jan. 24th.
 
After Bitconnect was shuttered, DavorCoin took to Twitter to gloat about the formers misfortunes tweeting "this does not change anything for us except that now Davor is the number one lending platform in the world !!" Looks like their celebration will be short lived. And good riddance.

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