Texas authorities issue a cease and desist order against two crypto scams.

The Texas State Securities Board issued the cease and desist order against two alleged cryptocurrency scams- Bitles Limited and its principal Janis Lacis.

The Texas State Securities Board issued the cease and desist order against London-based Bitles Limited and its principal Janis Lacis and Princeton, Texas-based C3 Data Services, and its principal Edward Carter. Bitles has been luring investment into eight different “saving plans,” the regulator said. It claims to use proprietary algorithmic trading software it refers to as Cryp-Spider AI Algo-Trading System. This system reportedly trades the cryptocurrencies across different exchanges, generating 0.3% – 6% in daily returns.

 

Bitles promises a 30% return on its native token. 

According to the Texas State Securities Board, Bitles claims that its native tokens are utility tokens that will shoot up in value by as much as 60% per month. They assure the BTL holders that they will generate at least 30% per month from these native tokens. The firm is reportedly recruiting sales agents to recruit Texas investors. This recruitment reportedly requires the sales agents to attend a seven-day training program. After completing this program, the agents are expected to receive lucrative benefits in commissions. 

 

Crypto firms are accused of concealing critical information from their investors.

The Texas regulator has claimed that the offering is a fraud. Both crypto companies are accused of concealing critical information from their investors. This includes information about key personnel, information relating to the trading software and business operations. Also, the two firms aren’t registered to operate or recruit sales agents in Texas. 

Joe Rotunda, the regulator’s director of enforcement, said, “the price and market capitalization of cryptocurrencies has sharply increased over the previous year. Unfortunately, promoters of illegal crypto-get-rich-quick schemes are taking advantage of these changes to the market – leveraging widespread interest to peddle fraudulent products.” Texans interested in purchasing securities tied to cryptocurrencies should be aware of considerable risks and deal only with issuers lawfully operating in Texas,” Rotunda warned. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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