Bitcoin Investing Scam Gets in the Crosshairs of US Regulator

Fri, 08/09/2019 - 14:01
Alex Dovbnya
If something sounds too good to be true, it’s a good sign that you might lose all your money
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The Texas State Securities Board (TSSB) has filed a cease and desist order against cryptocurrency firm Forex and Bitcoin Trader that operated like a typical pyramid scheme. The regulator reports about an increasing number of such frauds after Bitcoin surged to nearly $14,000 back in June.

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900 percent ROI in no time

The news release states that the company, which specializes in cryptocurrency investment and Forex trading, would offer its gullible clients 10x ROI with little incurring risks. Thus, by investing $2,000, they would be able to rake in a whopping $20,000 in just two weeks. This ‘business model’ most definitely sounds like a textbook definition of a Ponzi scheme.

Forex and Bitcoin Trader wasn’t even officially registered as a dealer or agent with the State Commissioner.

The company failed to reveal the details about its capital and insurance policy (if there was any). However, it cajoled investors into believing that their funds were insured.

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Coming out of the woodwork

The increasing scrutiny from the Austin-based regulator comes after the spike in
cryptocurrency prices that prompted the appearance of more scams in the likes in Forex and Bitcoin Trader.

The Texas regulator started clamping down on illegal cryptocurrency businesses back in December 2017, its sweeping streak slowed down during the crypto winter that lasted throughout 2019.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at

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