The Missouri Secretary of State Securities Division has sent a notice to Mavixbtc Limited to shut down their operations because of misleading investors. Mavixbtc would be facing civil penalties and investigation costs of over $30,000 for representing themselves as a brokerage and investment company.
St. Louis-based Mavixbtc offered investment services in which they advertised returns of 55% “in less than 6 days”. The officials said that Mavixbtc claims that it is registered with the Securities Investor Protection Corporation and Financial Industry Regulatory Authority. They also use the registration number of a firm that does not know about Mavixbtc.
The Securities Commissioner David M. Minnick said that giving false information to customers by promising quick profits through investing in cryptocurrency is a fraud. He further adds that several people are trying to scam investors with such “enticing promises” and the person should always check with their office first before investing.
The North American Securities Administrators Association (NASAA) launched the second part of the “Operation Cryptosweep” which will help in cracking down crypto-related scams. Till now, 35 enforcement decisions have been taken, and nearly 100 more are pending.