The Texas State Securities Board has issued an emergency stop and desist order to an Australia-based cryptocurrency mining firm and its associates. According to the order, the corporate represents that investments in its mining contracts are “guaranteed to 200% profit.”
Cease and Desist Order
The Texas State Securities Board on Tuesday issued an emergency stop and desist order to Sydney-based Aws Mining Pty. Ltd. and 9 different respondents affiliated with the corporate. The entities named are Automated Web Services Mining (Aws Mining), Mycoindeal, Aws Elite, and West Texas Oilfield Cloud Miners Club.
Sydney-based Mycoindeal supplies pockets providers for investments issued by Aws Mining. Aws Elite is a multi-level advertising group for Aws Mining based mostly in Pennsylvania. West Texas Oilfield Cloud Miners Club, an affiliate of Aws Elite, is a Texas-based gross sales agent for Aws Mining.
The order states:
The investments within the cryptocurrency mining program are ‘securities’ … Respondents are partaking in fraud in reference to the supply on the market of securities … [and] are making provides containing statements which might be materially deceptive or in any other case more likely to deceive the general public.
The board elaborated that respondents are violating the Securities Act since neither they nor their securities are registered with the state’s Securities Commissioner.
They are, subsequently, ordered to stop and desist from providing on the market any safety in Texas till the securities and all events concerned are correctly registered or exempt from registration.
200 Percent Return Guaranteed
According to the order, Aws Mining’s web site claims that the corporate is mining cryptocurrency by means of farms situated in Guangzhou, China; Ingushetia, Russia; Ciudad del Este, Paraguay; Anhui, China; and Hebei, China.
The order describes that the businesses and their executives “are issuing investments in cryptocurrency mining referred to as crypto mining power contracts, and they are representing [that] the crypto mining power contracts are ‘guaranteed to 200% profit’ and that each crypto mining power contract ‘is guaranteed to 200% return on purchase price.’”
In addition, the businesses are utilizing a multi-level advertising community of gross sales brokers to promote these mining contracts and recruit new brokers on social media. The board emphasised:
They are additionally telling potential buyers the crypto mining energy contracts pay a ‘200% passive return on every investment.’
Furthermore, the order famous that “Although potential investors are led to believe they will receive a 200% return on principle invested in crypto mining power contracts,” Aws Mining “is now disclaiming the guarantee of profitability and instead representing that investors assume the risks associated with the investment.”
The board subsequently concluded that the businesses and people named within the order “are engaging in other illegal, fraudulent, deceptive, and/or misleading practices in connection with the offer of crypto mining power contracts to Texas residents.”
What do you consider Texas taking motion towards Aws Mining? Let us know within the feedback part under.
Images courtesy of Shutterstock and Texas State Securities Board.
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