The Texas State Securities Board (TSSB) has issued My Crypto Mine with a cease and desist order for breaching securities laws in the state. According to the notice, My Crypto Mine was promising investors guaranteed returns of up to 20% each month. The TSSB has gone on to say that the firm has been issuing statements that are misleading and deceiving to the public.
All of these are rookie mistakes for an investment firm to make, and often highlight scams. Accredited investors would know that these are illegal ways to advertise financial products, meaning if you see something that promises guaranteed returns you should run for the hills – not drop your cash.
Denying the Allegations
Mark Royer – the man behind My Crypto Mine – has come out all guns blazing, claiming that the TSSB has even got the firm’s website wrong in the order. After reading the cease and desist order, there are no links to the website, but a quick Google search reveals the correct website. Royer went on to explain that My Crypto Mine is a small investment club and that the document was filled with inaccuracies. Despite his claims of innocence, My Crypto Mine’s actual website has mysteriously vanished.
Texas Clamping Down on Scammers
Whether or not Royer is a genuine scammer is yet to be seen, but Texas is taking a guilty until proven innocent approach. Earlier in the year, the TSSB issued a cease and desist order to a cloud mining firm for selling crypto mining contracts – something that is still illegal in the lone star state. On top of this, AWS Mining Pty Ltd also promised investors a 200% guaranteed return on their investments – another questionable move when it comes to investment advice.
Colorado Following Suit
In a bid to become a blockchain state, Colorado has too been kicking the scammers out of town. Colorado has already issued 18 cease and desist orders this year, and it’s not showing any signs of slowing down. The state is currently targeting ICO scammers who fail to register with the Colorado Division of Securities.
Royer has 31 days to request a hearing, otherwise he will automatically be found guilty of all charges. Royer could be staring down the barrel of a $10,000 fine and up to 10 years in jail for the raft of charges brought against him and My Crypto Mine. If he proves to be innocent as he adamantly claims, it will certainly be a turn up for the books. If you ask us, expect to see a guilty plea in exchange for a reduced sentence sooner rather than later.
