Administrative Orders Entered Stopping Online Investment Scams
Press Release
AUSTIN - Securities Commissioner Travis J. Iles entered a pair of emergency cease and desist orders targeting three unregistered online cryptocurrency and alternative asset investment platforms. The actions stop illegal so-called get-rich-quick schemes fraudulently touting the payment of significant returns with little or no risk.
“Bad actors continue to use online means – such as internet websites and social media platforms – to broadly market ‘risk-free’ scams to Texas investors,” said Commissioner Iles. “These folks flock to the Lone Star State and investors should be very wary of promoters touting guaranteed lucrative returns through online media and should thoroughly investigate any offering before investing their money.”
The first order names Delta Crypt Limited, a business registered with Companies House (the United Kingdom's registrar of companies) that claims to operate from the United Kingdom. The first order is not the only government action targeting the company - according to the order, Delta Crypt was previously promoting an online investment platform when the Enforcement and Investor Protection Department of the Philippines Securities and Exchange Commission issued a public Advisory Warning. The Advisory Warning found Delta Crypt Limited was illegally offering securities paying “ridiculous” returns and warned the public “not to invest or stop investing in any scheme offered” by Delta Crypt.
Following the issuance of the prior warning, Delta Crypt allegedly removed its website and instead of shutting down operations began a new online investment scheme – this time acting under the names Binance Assets, BinanceAssets LTD and Bit Kind LTD. According to today’s order, the respondent is now advertising cryptocurrency investments in various plans. The pitch is relatively simple – invest a little, gain a lot, and don’t worry about risk. In fact, the “Gold Plan” pays a guaranteed 30% return and the “Diamond Plan” pays a guaranteed 40% return.
The order found the offering to be fraudulent and deceptive. It accuses Delta Crypt of concealing important information about its principals, the warning from the Philippines government and the risks associated with cryptocurrencies. The order also found Delta Crypt has been illegally soliciting sales agents, promising to pay commissions regardless of registration or licensure.
The second order names Digitaly Invest [sic] and FxSmart-Robots, which are online platforms promoting various investment plans tied to forex, spot metals, CFDs, oil and gas products and precious metals. Like the first order, the investment plans for these platforms also include the “Gold Plan” and the “Diamond Plan.” According to the order, the “Gold Plan” again pays a guaranteed 30% return and the “Diamond Plan” again pays a guaranteed 40% return.
The second order also found the claims are fraudulent. The parties are allegedly concealing important information – including the identity and qualifications of principals, material financial information and the significant risks associated with the underlying products. According to the order, Digitaly Invest has also been misrepresenting the location of its offices and illegally soliciting sales agents to promote its securities.
Delta Crypt, Digitaly Invest and FxSmart-Robots are not registered to sell securities in Texas. Their investment plans – including investments in the Gold Plans and the Diamond Plans – are not registered or permitted for sale in Texas.