Texas Securities Watchdog Takes Action Against 3 Alleged Crypto Frauds

The Texas State Securities Board has taken emergency action against three crypto investment schemes it alleges are attempting to defraud local investors.

According to a news release published Tuesday, the board's commissioner, Travis J. Iles, entered a first emergency cease-and-desist order against Coins Miner Investment Ltd., a Russia-based cryptocurrency investment promoter that has been soliciting funds from Texas residents by pretending to represent U.S. crypto exchange Coinbase.

According to the cease-and-desist, the alleged hoax firm has been sending out email promotions that are designed to appear as if they were issued by the San Francisco-based exchange.

Coins Miner makes "Numerous fraudulent misrepresentations to try to make its investment offering appear legitimate" on its website, including claiming to be based in the U.K., but actually working from Volgograd, Russia, according the the release.

In the second emergency order, the Texas regulator is targeting DGBK Ltd., or DigitalBank, a firm that is soliciting funds to develop a claimed "Hack-proof" crypto wallet device.

The order alleges that DigitalBank is offering equity in the company, alongside the chance to buy its own crypto token called DGBK - claimed to bring returns of 1,900 percent after a supposed initial coin offering to be held next year.

Further, the investments being offered by the firm are unregistered securities under Texas law, according to the order.

"We just took emails of people that might be interested to invest in the future. The plan was to get back to those potential investors the moment we complete the full development and to cooperate with an investment firm that will legally arrange the ICO.".

The third action is focused on Ultimate Assets, which claims to be based in Arlington, Mass., and is soliciting Texas residents for crypto and forex trading services.

The securities board said it considers that the investments being offered by the supposed firm are securities in Texas, but the firm is not registered with the state's securities board.