The Texas Securities Board (TSSB) has announced a series of enforcement actions against 15 online investment entities that illegally sell cryptocurrencies, binary options and foreign exchange investments in Texas.

Fake social media account

Regulators claim that the operators of these companies are using their social media skills and the Internet to cover up the fraudulent nature of their operations. Therefore, the emergency execution order will prevent the marked companies from continuing to operate from Texas until they obtain permission from the regulatory agency.

At the same time, TSSB Commissioner Travis J. Iles (Travis J. Iles) emphasized the main observations of his organization when dealing with online trading and investment companies in his comments on stop orders and stop orders. He said:

This series of actions clearly shows the risks of dealing with popular online investment platforms. When trading via the Internet, investors cannot afford everything at face value. They need to conduct a thorough investigation before investing-because on the Internet, anyone can forge a trading license, issue phone testimony or falsely claim that they are under the supervision of an overseas agency.

According to a statement issued by Iles, the top 10 entities hit by trading suspensions and restraining orders are all related to unregistered binary dealer James Blundell. Blundell was accused of using false social media accounts, forging documents and using fraudulent means to lure victims.

Unregistered investment platform

TSSB found that Blundell, who claimed to be a resident of Texas, “has at least 3 Instagram accounts, 7 Facebook sites and a Linkedin profile (that he uses) to recruit victims.” In the suspension and termination order, Blundell was accused of using “his extensive social media presence to tout his expertise in the cryptocurrency market, as well as his trading in binary options and foreign exchange trading.”

READ  300 banks in Germany charge negative interest rates, including Deutsche Bank, Commerzbank, and ING

In addition, the order also accused Brundle of “enhancing his expertise by publishing a picture of a trading certificate, which appears to be a binary options trading license issued by Texas City, Texas.” According to TSSB’s order, “the license is actually forged.”

False testimony

At the same time, the second ceasefire and suppression order accuses the three organizations of “falsely claiming the Valentine’s operation from Texas.” The order also accused these companies of “fraudulently claiming that these investments are guaranteed and using forged certificates to add credibility to their plans.”

Despite this, the order still observes the three parties trying to avoid rules and regulations after claiming to be under the jurisdiction of overseas regulators. The order says:

According to the second-order order, they are still taking further steps, falsely claiming that they are regulated as video games by the Isle of Man Gambling Supervision Company in the British Isles.

However, the TSSB statement asserted that the three companies were “actually under the supervision of the Securities Commission when buying and selling securities within or from Texas.” Regulators revealed that these platforms “have not obtained permission to sell securities in Texas, nor have they registered with the agency.”

At the same time, TSSB Commissioner Iles urged residents who intend to invest “to contact the regulatory agency and begin their due diligence process.”

Can the order issued by the TSSB deter Internet fraudsters? Tell us what you think in the comments section below.

Picture Credits: Shutterstock, Pixabay, Wiki Commons