May 30, 2024 12:25
The Texas State Securities Board has taken action againstArkbit Capital, issuing a cease and desist order for its involvement in allegedfraudulent crypto cloud mining activities. Led by Financial Examiner AlexisCantrell, the board's investigation revealed purported deceptive practices byArkbit Capital and its associated entities.
Allegations of Deceptive Practices
Among the accusations, Arkbit Capital stands accused ofemploying deceptive image and video manipulation tactics to promote itsinvestment offerings. The company, along with its affiliates Arkbit CapitalHoldings, ABC Holdings LLC, and ABC Mining, allegedly misrepresented itsoperations, claiming to run Arkansas-based data centres for cryptocurrencycloud mining.
Investors were enticed with promises of significant dailyreturns ranging from 1.6% to 2.8% over a 120-day period on digital assetdeposits within a specific range. However, the board's order asserts that thesepromises were unfounded.
Furthermore, Arkbit Capital purportedly usedCoinPayments.Net, a payment processor, to handle transactions for itsinvestment plans, despite restrictions barring users from certainjurisdictions, including the United States. It was discovered that the accountholder linked to Arkbit's CoinPayments account was Paras Khivesara, located inHyderabad, India, rather than in Arkansas as claimed.
Additionally, the board highlighted instances of manipulatedmedia, including a video purportedly featuring the company's CEO and founderspeaking at a cryptocurrency conference in Austin, Texas. However, no evidencewas found to support the presence of Delmar Estabrook or Arkbit Capital at thesaid event.
Texas regulator orders Arkbit Capital to cease operations for alleged crypto scamThe Texas State Securities Board has issued a cease and desist order against crypto miner Arkbit Capital for engaging in fraudulent crypto cloud mining activities, Cointelegraph reported. The
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In response to these findings, Joe Rotunda, Director of theEnforcement Division at the Texas State Securities Board, emphasized theimportance of vigilance when encountering social media investmentopportunities.
This is a common tactic we see in online crypto investmentscams. By appearing to be part of the cryptocurrency industry, bad actorsattempt to seem like legitimate contributors to the space. Dont be fooled,said Rotunda.
This incident adds to a series of Ponzi scheme casesinvolving cryptocurrency that have surfaced in the United States over the pastyear, reflecting challenges within the digital asset investment landscape.
This article was written by Tareq Sikder at www.financemagnates.com.
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