AD
AD
AD

Cryptocurrency Investment Pyramid Scheme Hit with Cease-and-Desist Order by Texas Securities Regulator

article image
Cover image via stock.adobe.com

The Texas securities regulator brings an emergency action against a cryptocurrency pyramid scheme

Thu, 07/16/2020 - 19:42
Advertisement

Cryptocurrency pyramid scheme Mind Capital has been hit with a cease-and-desist order by the Texas State Securities Board (TSSB) on Thursday, according to its recent press release

Mind Capital offered a crypto-fiat arbitrage trading program that are forbidden for sale in the state of Texas.   

Music, gambling, and MCcoin

The TSSB alleges that Mind Capital concocted a ten-tier pyramid scheme that was only meant to lure more participants. 

All those who were willing to participate in its program have to put their money into the MCcoin, a utility token whose value is pegged to one dollar.

In the spirit of a textbook Ponzi scheme, investors were promised stable daily returns of up to 1.5 percent. 

Mind Capital is helmed by former musician and film producer Gonzalo Garcia-Pelayo who later ventured into playing Russian roulette (he was even covered in a VICE segment).

According to the emergy order, Georgetown resident Craig Kintzel and other agents were tasked with recruiting new investors in return for an eight percent share of all fresh money they would manage to attract. 

Unverifiable claims 

Commissioner Travis J. Iles, who was responsible for bringing an emergy action against the company, claims that such schemes are “dangerous,” adding that investors cannot verify their legitimacy.

“Although promoters may boast about the successes of these platforms, potential investors are rarely afforded the opportunity to verify their claims – or even determine whether the applications actually exist.”

Earlier this month, CryptoComes reported about a Singaporean businessman being slapped with a $72,000 fine for promoting the OneCoin Ponzi scheme. 

Advertisement
Hot stuff
1,249,577 XRP in 24 Hours Push Price to New Frontier
2 weeks 2 days ago
Shiba Inu (SHIB) Price to Add $0 This Test is Failed
2 weeks 3 days ago
Cardano Kicks Off New Round of Stake Pool Delegation
4 years ago
Blow to Ripple as SEC Gets Access to Company's Missing Slack Messages
4 years ago
Anti-Bitcoin Activist Arrested in El Salvador
4 years ago
Advertisement
Name card
Shiba Inu (SHIB): One Last Test at $0.0000138 Waiting
17 hours ago
Name card
Cardano (ADA) in Bubble? Indicator's Warning Signs
1 day ago
Name card
Solana (SOL) All-Time High on Line? It's Closer Than You Think
2 days ago