A state securities regulator in Texas issued another cease-and-desist order against a Hong Kong-based “R2B Coin”
The Texas Securities Commissioner issued an Emergency Cease and Desist Order. The order was released on January 24, 2018 by Securities Commissioner Travis J. It explains that Hong Kong-based firm R2B Coin issued unregistered securities providing false information to Texas residents.
The securities regulator stated that the company’s offering, which is being promoted by misleading information, falls under the definition of securities.
As it is indicated on the R2B website the start price of the coin is ranging from $0.008 to $188. The website claims that R2B coins will reach $200 within three months after the start of trading.
According to information on the website, the company claims to be globally licensed. However, the Texas regulator informed that R2B is not registered in its jurisdiction and has violated securities regulations by soliciting investors from Texas through a series of conference calls.
According to the document, the company claimed to have 14,500 investors from 34 countries including U.S., Sweden, Italy, and India. The company also made misleading promises, for example, that investors can change their tokens for stocks at New York or Hong Kong exchanges.
This is the third state’s cease-and-desist against a crypto company. Previously, The Texas Securities Commissioner issued similar orders to Dubai-based USI-Tech and BitConnect.