Texas State Securities Board Issues Cease and Desist Order Against Arkbit

The Texas State Securities Board has issued a cease and desist order against Arkbit Capital for engaging in fraudulent cryptocurrency cloud mining activities.

According to the order, the Texas State Securities Board, led by financial examiner Alexis Cantrell, found that Arkbit Capital and its affiliated entities engaged in fraudulent activities, including using deceptive photo and video manipulation techniques. to promote its investment projects.

Arkbit Capital, Arkbit Capital Holdings, ABC Holdings LLC, and ABC Mining (collectively “Arkbit”) falsely claimed to operate Arkansas-based data centers for cloud mining of various cryptocurrencies.

It offered investments with promised daily returns of between 1.6 and 2.8% for 120 days on digital asset deposits of between $50 and $49,999.

The order also alleges that Arkbit Capital used its payment processor, CoinPayments.Net, to facilitate payments for its investment plans despite CoinPayments.Net’s policy restricting users from certain jurisdictions, including the United States.

The Arkbit CoinPayments account holder turned out to be Paras Khvisara, who resides in Hyderabad, India, not Arkansas.

One of the manipulated videos used by Arkbit Capital included a video purportedly showing its CEO and founder speaking at a cryptocurrency conference in Austin, Texas.

However, the Texas State Securities Board found no evidence that Delmar Estabrook or Arkbit Capital was present at the conference.

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The Texas State Securities Board, through Joe Rotunda, Director of the Enforcement Division, urges the public to remain vigilant when approaching investment opportunities on social media and to thoroughly research any investment before making ‘Send money.

This is one of several cryptocurrency-related Ponzi scheme cases that have emerged in the United States over the past year.

On March 15, the U.S. Securities and Exchange Commission (SEC) busted a $300 million Ponzi scheme under the guise of a cryptocurrency trading platform called CryptoFX, which targeted crypto investors in the Latino community -American of the United States.

A few days later, on March 18, a New York jury convicted two people who had been promoters of the now-defunct cryptocurrency mining and trading software IcomTech.

Most recently, on April 4, Irina Delkinska, former head of legal and compliance for the multi-billion dollar fraud scheme OneCoin, was sentenced to four years in prison after admitting her role in laundering millions of dollars.

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