Texas Officials Issue Cease and Desist to Another Cryptocurrency Related Scam


According to the order, LeadInvest was targeting investors in Texas and was failing to both disclose the qualifications and background of its group members, and the liabilities associated with its mining and financing operations. The team can be non-existent, with stock photos being used in conjunction with names.

The red flag for the Texas State Securities Board was the fact that the platform for that reason violating the majority of the Texas Securities Act and was offering securities for sale.

Respondent LEADINVEST is engaging in fraud in connection with the offer for sale of securities

The LeadInvest site is loaded with "get-rich-quick" language promising interested parties incredible yields, and that "zero" cryptocurrency experience must get involved. The team is presented to action.

There are thousands of cryptocurrencies for investors to choose from. Choice paralyzes. Choice adds cost, complexity and the need for advice. We remove this complexity for the crypto investor.

The site also features a "professions" tab in which a vague job description is supplied, and is geared towards promoters for the program. Government officials that are now on high-alert because of sharp increase in fraud in the area will most likely throttle their longevity as more of these kinds of scams seem.

This Isn't Their First Rodeo

This would not be the first time that fraud linked to the space has been directly targeted by the Securities Commissioner of the state of Texas. Only last month, the Texas board accused scam BitConnect of selling securities that were unlicensed and fraud. The order led to the downfall of the platform, with its asset losing in a short time period over 90 percent of its value.

The Texas Commissioner, also recently issued another lending platform dealing with the sale of unlicensed securities, DavorCoin an emergency order. Similar to BitConnect, users bought DavorCoin's underlying asset to be able to lend it for doing so, and receive a commission.

The commissioner in Texas has truly taken the bull by the horns when it comes to targeting fraud at the space and will almost certainly continue to do so as more "lending" platforms materialize.