The Texas State Securities Board (TSSB) has issued cease and desist orders against New York-based Forex and Bitcoin Trader for misleading advertisement on cryptocurrency. Texas Regulator Issues Cease and Desist Against Crypto and Forex Trading Entity.

The firm is advertising on Craigslist Dallas, promising a return of 900 percent in 14 days. The firm was dealing with cryptocurrency investments, commodity-based derivatives, and foreign currency trading.

The company also asserted to be a certified broker-dealer with an insurance policy and adequate capital to ensure yields.

However, the company is not registered with the Securities Commissioner as a dealer or agent, according to the order. Furthermore, the company had not provided data on its alleged insurance policy.

The firm is soliciting Texas investors with the promise of returning $20,000 after 14 days with an investment of $2,000, excluding commissions and charges equivalent to 10 percent of returns.

The Securities Board introduced the crypto industry’s regulatory sweep for the first time in late 2017 amid market exuberance.
To date, 24 administrative orders concerning 62 people and companies have been entered by the Securities Commissioner.

“The number of suspect cryptocurrency offerings being promoted to Texas investors increases along with the run-up in the price of cryptocurrencies and volatility in the cryptocurrency markets,” the report said.

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