Galco.jpg                 

  



 

Commissioner Acts to Stop Two Offerings As Crypto Sweep Concludes
Austin
   
 
More Today's News:
ߦ   South Texas trucker on his way to prison for trafficking cocaine
ߦ   Criminal Mischief Investigation
ߦ   Domestic Violence Awareness Month Sees Strong Prosecution of Abusers
ߦ   How a 100-Year-Old Car Theft Law Led to the Modern FBI
ߦ   4 charged for illegally purchasing firearms
ߦ   Another young man charged with making online threats
ߦ   Coast Guard rescues 2 mariners near Cameron, Louisiana
ߦ   Final Defendant Convicted in $189 Health Care Fraud Scam
ߦ   Final men sentenced for robbing local business with a firearm
ߦ   Former Mexican governor extradited on money laundering charges
ߦ   K-9 Rudy & K-9 Kaja Retirement Ceremony
ߦ   Mexican national sent to prison for cocaine conspiracy
ߦ   More charged in RGV auto loan scam
ߦ   Oil Executives Guilty for Roles in Bribery Scheme Involving Foreign Officials
ߦ   Paris Police Dept - Daily Call Summary
ߦ   Police Extract Man Barricaded Inside House
ߦ   Teen Dies In Accidental Shooting
ߦ   Texas City Shooting Investigation
ߦ   UPDATE: GoFundMe Page Set Up For Injured Jamaica Beach Police Officer
ߦ   19-year-old man accused of decapitating cat, smearing its blood inside an Arby’s bathroom

 
Search Archives:

The Texas State Securities Board this week finished its second regulatory crackdown on cryptocurrency offerings with two emergency actions against businesses claiming they have the expertise and financial strength to deliver high-yielding, no-risk returns.

Securities Commissioner Travis J. Iles said the orders conclude the agency’s second regulatory sweep of suspect cryptocurrency-related offerings. The sweep started in mid-June 2019 in response to the price of Bitcoin nearly tripling in the prior three months.

Emergency Cease and Desist Orders entered Oct. 15 against:

PK Crypto Investment AKA PK-Crypto Investment; Peggy Kay Brendan; and Janet A. Osborn

Crypto Miner Limited AKA Cyp Miner Limited AKA Cyp Miner and Elizabeth Frazier

“We quickly learned that bad actors were continuing to capitalize on widespread interest in cryptocurrencies despite fluctuations in their prices and market value,” said Joe Rotunda, director of the Enforcement Division.

The Enforcement Division’s first sweep of cryptocurrency investment offerings started in December 2017, also in response to a sharp increase in the price of cryptocurrencies.

Since December 2017, Commissioner Iles has entered 26 administrative orders against 79 individuals and entities involved in cryptocurrency offerings. Several actions resulted in the offer of rescission to Texas investors.

Cryptocurrency-related cases have become a staple of the agency’s enforcement work.

In fiscal year 2019, which ended Aug. 31, 30% of the investigations opened by the Enforcement Division involved cryptocurrency offerings.

The two emergency cease and desist orders entered Oct. 15 cite offerings that are littered with traits common to suspect cryptocurrency-related investments. Among them: 

CLAIMS OF LEGITIMACY: PK Crypto claims it is?a “private legal US registered asset-management investment company.”? According to the order, the company is not registered either with Securities and Exchange Commission or the?Texas State Securities Board and it is not registered with the Texas Secretary of State to do business in the state.

The company also claims the securities it issues trade on an over the counter market under the symbol GBTC. That ticker, however,?belongs to an unrelated company.

According to the order, PK Crypto is also attempting to boost its credibility by telling investors it works with legal counsel and an accounting firm that audits its annual financial statements.

However, the State Bar of Texas has no record of the named attorneys being licensed to practice law in Texas. PK Crypto’s purported accounting firm does not have any affiliation with the company.? 

Cyp?Miner claims it is a fully licensed company in the United Kingdom, but according to the order,  the?registrar of companies in the UK has no record?of the company.? A company promoter, Elizabeth Frazier,? is described as an “expert Bitcoin miner,” but Cyp Miner provides no information on her qualifications or experience. 

ONLINE MARKETING: Cyp?Miner is advertising investments tied to cryptocurrency mining on?DealStream, an?online marketplace with more than 500,000 members in 100 countries. DealStream facilitates the buying and selling of businesses, real estate, oil and gas assets, and private investments. 

PK Crypto has a robust social media campaign. It is advertising cryptocurrency investment plans through Twitter, LinkedIn, Facebook, and YouTube videos. 

NO PHYSICAL LOCATION: Many promoters of suspect cryptocurrency offerings exist only on the internet.

PK Crypto lists offices in London, Vienna, Jakarta, and the Shanghai province of China. The company says its worldwide headquarters is in Waco, Texas.

According to the order, the street address in Waco does not exist.

PRIVATE OFFERINGS EXEMPT FROM REGISTRATION: Cyp?Miner is attempting to deceive potential investors by claiming the investments are exempt from regulation, according to the order.?Cyp?Miner claims its investments are “private transactions” and exempt from federal securities laws and regulations.

The order, however, found that Cyp Miner was violating state registration laws, meaning the business was not exempt from state law.

INVEST MORE, EARN MORE: PK Crypto advertises that an initial investment of $2,500 to $4,999 can produce daily interest of 3.33% with a term of 30 days. Invest between $50,000 and $100,000 in the VIP Plan and earn daily interest of 14.28% with a term of seven days.

PK Crypto is not providing any financial information to potential investors so they can investigate the claims of profitability.

Investors must pay for the?investments?with Bitcoin, one of the most widely used cryptocurrencies.

RECRUITING UNLICENSED SALES AGENTS: According to the order, Cyp Miner is recruiting existing investors to act as sales agents in bringing in new investors. The company is paying commissions of between 1% and 10% of the principal deposited by new investors. 

Cyp Miner is not verifying that the affiliates are registered to offer or sell securities, according to the order. Selling securities without being registered generally violates the Texas Securities Act.

NO DISCLOSURE OF RISKS: Investments tied to cryptocurrencies face a long line of risks, but according to both orders risk disclosures are absent from the solicitations of investors. 

Risks include: Government regulation, volatility in cryptocurrency prices, hacking, competition with all other cryptocurrencies, and disruptions in the exchanges where cryptocurrencies are exchanged for fiat currencies like the U.S. dollar.

Post a comment
Name/Nickname:
(required)
Email Address: (must be a valid address)
(will not be published or shared)
Comments: (plain text only)
Printer Friendly Format  Printer Friendly Format    Send to a Friend  Send to a Friend    RSS Feed  RSS Feed
© 1999-2019 The Police News. All rights reserved.