Financial authorities in Texas have filed a cease and desist letter against a cryptocurrency scam that was advertising itself on Craigslist and promising investors 900% returns with their help.
Authorities report that the advertisement was telling investors that if they provided the firm $2,000 they would help them turn it into $20,000 within a matter of weeks. Naturally, though, such statements are banned all over the United States and are not supported by financial regulators whatsoever, especially when they’re false.
The investigation further found out that the advertisement was claiming that the company was a registered and licensed trading firm with the local CFTC, which also turned out to be a lie. Authorities report that no record of the firm even applying for the license has been found in their database.
Furthermore, the company hadn’t even supplied information on their insurance policy, while claiming that they had the capital and the manpower required to support their investors.
Unfortunately, this is the fourth case of a deliberate scam that authorities have dealt with ever since the sweep investigations resumed in June 2019. The investigations were initiated by the State Securities Board and will most likely continue until the end of the year.
Authorities claim that this is definitely not the last scam they will find within the country and promise vigilance in the future.