3 Emergency Cease and Desist Orders against Fraudulent Cryptocurrency InvestmentsJuly 3, 2019
A regulatory sweep targeting the cryptocurrency industry has been initiated in Texas. This has been initiated in an attempt to clean up scams while the price of cryptocurrency is climbing high.
Joe Rotunda, Texas State Securities Board stated “It’s unfortunate and inevitable.” He further stated “Bad actors tend to follow the news and the things that get widespread public attention.”
A similar initiative was taken in December 2017, at a point when the price of Bitcoin went as high as $20,000 per token.
The recent climb of the Bitcoin after the coming of Facebook in to the cryptocurrency space launching a new payment system, was phenomenal. Investors in Bitcoin were excited as Libra had the potential to establish the concept of digital currencies in to the rest of the world.
Rotunda when commenting about the improved enthusiasm in the cryptocurrency world and related cryptocurrency scams stated, “Absolutely, there will be more,” he said. “It’s tough, because there are a lot of legitimate firms out there dealing with this new technology.”
The current attempt has already led to 3 emergency cease and desist orders against fraudulent cryptocurrency-based investments.
Companies have been warned against using “materially misleading or otherwise likely to deceive the public.”
There is a widespread global resurgence of crypto interest. Unless sensible regulations are not in place, there might not be positive outlook for exchanges.
Awareness about cryptocurrencies is very low and users are reluctant to trade in cryptocurrencies. There are investors who are not very confident to put their money in to cryptocurrency startups. However, fundraising for cryptocurrency companies will become easier, the sooner they begin addressing the global market.
Nitin Sharma an angel investor stated, “The remaining players are doing a commendable job in a very tough environment.” He further added, “Some are still seeing growth points to the massive latent demand for digital assets exposure, especially from millennials.”
A New Jersey man recently ran a Binary Options Scam related to cryptocurrency. He was making use of fake data in order to establish a payment scheme to scam his victims.
Meanwhile the UK regulators have approved the first ever crypto hedge fund.
Adam Grimsley, COO of Prime Factor, “Most vehicles for investing in cryptocurrencies are outside the scope of regulators and that’s a big problem in a market that has such a bad reputation.”
Of note, Prime Factor manages funds from institutional and professional investors, which consists of funds from net worth individuals, private wealth managers and family offices. The investment strategy of the firm is not available publically.