News
Texas Regulator Blocks Alleged Cryptocurrency Mining Scheme
The Texas State Securities Board has taken action against Arkbit Capital, issuing a cease-and-desist order for its involvement in alleged fraudulent cryptocurrency mining activities. Led by financial inspector Alexis Cantrell, the board’s investigation revealed alleged deceptive practices by Arkbit Capital and its associated entities.
Among the allegations, Arkbit Capital is accused of using deceptive image and video manipulation tactics to promote its investment offerings. The company, along with its affiliates Arkbit Capital Holdings, ABC Holdings LLC and ABC Mining, allegedly misrepresented its operations by claiming to operate Arkansas-based data centers for cryptocurrency
cloud extraction.
Investors were enticed with promises of significant daily returns of between 1.6% and 2.8% over a 120-day period on digital asset deposits within a specific range. However, the council’s order states that these promises were unfounded.
Additionally, Arkbit Capital allegedly used CoinPayments.Net, a payments processor, to handle transactions on its behalf
investment plans, despite restrictions prohibiting users from certain jurisdictions, including the United States. The account holder linked to Arkbit’s CoinPayments account was found to be Paras Khivesara, based in Hyderabad, India, rather than Arkansas as claimed.
Additionally, the board highlighted instances of manipulated media, including a video in which the company’s CEO and founder supposedly speaks at a cryptocurrency conference in Austin, Texas. However, no evidence was found to support the presence of Delmar Estabrook or Arkbit Capital at the said event.
Official highlights Risks
In response to these findings, Joe Rotunda, director of the Texas State Securities Board’s Enforcement Division, emphasized the importance of vigilance when encountering investment opportunities on social media.
“This is a common tactic we see in online cryptocurrency investment scams. By appearing as part of the cryptocurrency industry, bad actors attempt to appear as legitimate contributors to the space. Don’t be fooled,” Rotonda said.
This incident adds to a series of Ponzi scheme cases involving cryptocurrencies have emerged in the United States over the past year, reflecting challenges in the digital asset investment landscape.
The Texas State Securities Board has taken action against Arkbit Capital, issuing a cease-and-desist order for its involvement in alleged fraudulent cryptocurrency mining activities. Led by financial inspector Alexis Cantrell, the board’s investigation revealed alleged deceptive practices by Arkbit Capital and its associated entities.
Among the allegations, Arkbit Capital is accused of using deceptive image and video manipulation tactics to promote its investment offerings. The company, along with its affiliates Arkbit Capital Holdings, ABC Holdings LLC and ABC Mining, allegedly misrepresented its operations by claiming to operate Arkansas-based data centers for cryptocurrency
cloud extraction.
Investors were enticed with promises of significant daily returns of between 1.6% and 2.8% over a 120-day period on digital asset deposits within a specific range. However, the council’s order states that these promises were unfounded.
Additionally, Arkbit Capital allegedly used CoinPayments.Net, a payments processor, to handle transactions on its behalf
investment plans, despite restrictions prohibiting users from certain jurisdictions, including the United States. The account holder linked to Arkbit’s CoinPayments account was found to be Paras Khivesara, based in Hyderabad, India, rather than Arkansas as claimed.
Additionally, the board highlighted instances of manipulated media, including a video in which the company’s CEO and founder supposedly speaks at a cryptocurrency conference in Austin, Texas. However, no evidence was found to support the presence of Delmar Estabrook or Arkbit Capital at the said event.
Official highlights Risks
In response to these findings, Joe Rotunda, director of the Texas State Securities Board’s Enforcement Division, emphasized the importance of vigilance when encountering investment opportunities on social media.
“This is a common tactic we see in online cryptocurrency investment scams. By appearing as part of the cryptocurrency industry, bad actors attempt to appear as legitimate contributors to the space. Don’t be fooled,” Rotonda said.
This incident adds to a series of Ponzi scheme cases involving cryptocurrencies have emerged in the United States over the past year, reflecting challenges in the digital asset investment landscape.