Texas regulators exposed a crypto mining MLM fraud called Arkbit

Arkbit made a false assertion about running data centers in Arkansas for the purpose of cloud mining different cryptocurrencies.

Arkbit Capital has been served with a cease and desist order by the Texas State Securities Board for its involvement in deceptive crypto cloud mining activities. The board, led by Financial Examiner Alexis Cantrell, discovered that Arkbit Capital and its associated entities utilized misleading tactics such as deceptive image and video editing to promote their investment schemes.

Operating under names like Arkbit Capital Holdings, ABC Holdings LLC, and ABC Mining, the group falsely claimed to manage Arkansas-based data centers for cryptocurrency cloud mining. Their investment offerings promised daily returns of 1.6-2.8% for 120 days on digital asset deposits ranging from $50 to $49,999.

Furthermore, the order alleges that Arkbit Capital utilized CoinPayments.Net, a payment processor that restricts users from certain jurisdictions, including the United States, to process payments for their investment plans.

The CoinPayments account associated with Arkbit was traced back to Paras Khivesara, situated in Hyderabad, India, rather than Arkansas. Among the manipulated videos utilized by Arkbit Capital was one purportedly depicting their CEO and founder delivering a speech at a cryptocurrency conference in Austin, Texas. Nonetheless, the Texas State Securities Board discovered no substantiation of Delmar Estabrook or Arkbit Capital’s presence at the conference.

The Texas State Securities Board, led by Joe Rotunda, Director of the Enforcement Division, advises the public to exercise caution when encountering investment opportunities on social media and recommends thorough research before committing funds.

This statement comes in the wake of several Ponzi scheme cases involving cryptocurrency that have surfaced in the United States within the past year.

On March 15, the U.S. Securities and Exchange Commission (SEC) exposed a $300 million Ponzi scheme operating as a cryptocurrency trading platform named CryptoFX, which specifically targeted investors in the Latino community.

Just days later, on March 18, two individuals were convicted by a New York jury for their involvement in promoting the fraudulent crypto mining and trading scheme known as IcomTech, which has since collapsed.

Most recently, on April 4, Irina Dilkinska, former head of legal and compliance for the multibillion-dollar OneCoin fraud scheme, was sentenced to four years in prison after confessing to her role in laundering millions of dollars.

Disclaimer:
This content is AI-generated using IFTTT AI Content Creator. While we strive for accuracy, it’s a tool for rapid updates. We’re committed to filtering information, not reproducing or endorsing misinformation. – Jomotoday for more information visit privacy policy