Texas Halts Alleged Crypto Mining MLM Scheme Promoted on Social Media

As a researcher with experience in financial fraud investigations, I find the emergency cease-and-desist order issued against Arkbit Capital and related entities by the Texas Securities Commissioner deeply concerning. Based on the available information, it appears that Arkbit was operating a fraudulent multi-level marketing (MLM) scheme involving cloud mining cryptocurrency, which is an increasingly common form of investment scam.

The Texas Security Board has taken immediate action against Arkbit Capital and associated parties, alleging they have been running a deceitful cloud mining cryptocurrency multi-level marketing (MLM) program.

According to the allegations, Arkbit promised unreasonably high returns of 1.6-2.8% per day for a period of 120 days in their cloud mining business. Reportedly, they employed misleading marketing techniques on social media outlets such as Facebook, Instagram, and Twitter. These tactics included sharing false videos supposedly depicting their data centers and executives at industry events.

The decree also indicated that CoinPayments.Net was being used to handle transactions for the Arkbit platform. According to the mandate, Paras Khivesara, who is situated in Hyderabad, India, manages the associated Arkbit account on CoinPayments.

According to the statement, Arkbit registered as a business with the Arkansas Secretary of State to boost its online legitimacy.

“According to Texas Securities Commissioner Travis J. Iles, investors should approach with caution when encountering unfamiliar individuals promising profitable investment opportunities. He warns that fraudsters are continually adapting, making it increasingly challenging to distinguish between deceitful schemes and genuine businesses.”

The Texas State Securities Board advises investors to exercise caution when considering investments promoted through social media, and to conduct a thorough investigation prior to making any commitments.

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2024-05-29 16:11