The first firm posted videos of three mining farms posted of online stock images, according to the order. Both companies made made completely misleading claims and violated U.S. securities laws.
The Texas State Securities Board has published “an emergency cease and desist order” to London-based Bitcoin Trading & Cloud Mining Limited, also famed as Btcrush. Also involved in the order are the company’s sole director and shareholder Jaylon Cross, founder and CEO Bruce Rodgerson, Chief Marketing Officer Robin Lozinski, and sales agent Thomas A. Johnson. As it was claimed in the order, Btcrush had published videos of its three mining farms on its website. US State Issues Emergency Cease and Desist Orders to Two Crypto Investment FirmsThe first mining farm the company declares to operate is the Maverik Farm, which is characterized as the “most powerful farm” located “in the mountains.” The second is the Hephaestus Farm, which Btcrush estimates to be the “most reliable and secretive farm located in a bunker of the Second World War times.” The third is the Rebelpower Farm, situated “at the former power station.”
Btcrush suggests investors to agree to a “private transaction rule” of the US Securities Act of 1933 and related acts when signing up. “This statement is materially misleading,” the order claims adding that the public will likely be frauded into thinking that the company is offering regulated securities in the state. Btcrush asks clients to agree at signup that they “are investing at their own risk” and that the firm “reserves the right to amend…. fixed interest rates… without agreement with investors.” The order claims that these sayings are also materially misleading given the advertised guarantee of 4.1% return regardless of the company’s profitability.
Respondents [both companies] are engaging in fraud in connection with the offer for sale of securities…[and] are making offers containing statements that are meterially misleading or otherwise likely to deceive the public.
Securities Commissioner, US
The second company to receive an urgency cease and desist order from the Texas State Securities Board on Tuesday is Forex EA & Bitcoin Investment LLC, the New York-based and also known as My Forex EA. Involved in the order are as well James Butcher and Richard Dunn who market the company’s Forex and Bitcoin trading program focusing on Texas citizens, the Securities Commissioner said.