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Texan authorities issue cease and desist order against a South African crypto credit card scheme.

The United States Federal Bureau of Investigation (FBI) has issued a warning against the rise in romance scams in the San Fra
The United States Federal Bureau of Investigation (FBI) has issued a warning against the rise in romance scams in the San Francisco Bay Area.

Texas Securities Commissioner Travis J. Iles on Friday entered an emergency cease and desist order to stop South African firms from fraudulently recruiting Austin residents to participate in a cryptocurrency credit card scheme. The cease and desist order targets Lance Angus Jerrard and his companies, Liquidity Gold Trust, Liquidity Gold Solution LLC, and Liquidity Global Card Solution (PTY) LTD. Authorities accuse the company of running advertisements on 590 AM KLBJ Radio, a radio station that broadcasts in Austin, Texas, and promoting the crypto scheme.

The company also promoted the crypto scheme on social media.

The cease and desist order also accuses the South African company of promoting the crypto scheme through internet websites and social media, such as Facebook, LinkedIn, and Twitter. Their pitch is built on cutting-edge blockchain technology and cryptocurrencies. According to the order, the companies are promoting the Liquidity Card, claiming it is a Mastercard that functions like a traditional debit card. The Liquidity Card, however, works with stablecoins, which are cryptocurrencies pegged to fiat money or other assets to minimize price volatility. In this case, the Liquidity Card purportedly works with USD Coin, TrueUSD Coin, and PAX Coin.

Crypto scams continue to rise amid the pandemic.

Crypto scams continue to rise amid the global pandemic across countries. Earlier, the Attorney General of California issued a warning against the rise of crypto scams amid the economic crises and time of uncertainties. “Fraudsters often rely on the excitement of innovative industries to persuade people to offer up their cash in hopes of earning far more in return,” California’s Attorney General Xavier Becerra tweeted.

There are several types of crypto scams that have become frequent including, 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.

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