Securities regulators in the two states of the US have ordered three South African crypto firms to desist from offering services to local residents over alleged crypto scams. The crypto firms claim to offer a debit card that is pegged on stablecoins, with shares in the companies being touted to return up to 500% interest in just 24 months. The three South African crypto firms have been targeting residents of Austin by running ads on a local radio station.
Regulators issue cease and desist order against three crypto firms.
The Texas State Securities Board revealed it had entered an emergency cease and desist order against the three firms—Liquidity Gold Solution LLC, Liquidity Gold Trust, and Liquidity Global Card Solution (PTY) LTD. According to the state regulator, the three firms have been targeting residents of Austin by running ads on a local radio station. They have also been using online platforms, including Facebook, Twitter, and LinkedIn. Lance Angus Jerrard founds all three South African firms, and they have been promoting the Liquidity Card, a debit card they claim is issued by Mastercard.
Crypto scams continue to rise amid the pandemic.
Cryptocurrency-related scams have increased around the world amid the ongoing COVID-19 pandemic. This year, the Federal Bureau of Investigation issued a warning saying scammers might be looking to unleash a surge in crypto-related scams. Several countries also reported a rise in cryptocurrency scams that included a spike in ransomware attacks, Ponzi schemes, and other different types of scams involving cryptocurrencies.
There are several types of crypto scams that have become frequent that include fake giveaways, sextortion, fake exchanges, fake ICO’s, bitcoin recovery, video scams, pyramid schemes, and the list on. Earlier, accounts of several famous people on Twitter were hacked to solicit bitcoins from their followers.
