Texan authorities issue cease & desist order against cryptocurrency credit card scheme

Maria Nikolova

The order targets Lance Angus Jerrard and his companies, Liquidity Gold Trust, Liquidity Gold Solution LLC and Liquidity Global Card Solution (PTY) LTD.

Texas Securities Commissioner Travis J. Iles on Friday entered an emergency cease and desist order to stop South African firms from fraudulently recruiting Austin residents to participate in a cryptocurrency credit card scheme.

The order targets Lance Angus Jerrard and his companies, Liquidity Gold Trust, Liquidity Gold Solution LLC and Liquidity Global Card Solution (PTY) LTD. The order accuses them of running advertisements on 590 AM KLBJ Radio, a radio station that broadcasts in Austin, Texas. They are also allegedly promoting their scheme through internet websites and social media, such as Facebook, LinkedIn and Twitter.

Their pitch is built on cutting-edge blockchain technology and cryptocurrencies. According to the order, the companies are promoting the Liquidity Card, claiming it is a Mastercard that functions like a traditional debit card. The Liquidity Card, however, works with stablecoins, which are cryptocurrencies pegged to fiat money or other assets to minimize volatility in price. In this case, the Liquidity Card purportedly works with USD Coin (USDC), TrueUSD Coin (TUSD) and PAX Coin (PAX).

According to the order, the companies are touting the benefits of using stablecoins and the Liquidity Card, specifically representing cardholders can use the Liquidity Card to receive and spend profits as stablecoins, avoiding taxes that would otherwise be recognized when converting cryptocurrencies to dollars or other fiat currency.

The system only works, however, if the Liquidity companies can recruit new cardholders. They need money to recruit these cardholders, according to the order, so they are raising capital from the public – and specifically targeting Austin residents – to fund their global marketing campaign. It supposedly launches in October 2020, with the goal of recruiting 8 million cardholders in 36 months.

As part of the alleged scheme to fund the marketing campaign, the Liquidity companies are selling 8,400 “portions” in their global project partnership. Each portion costs $1,150 and entitles purchasers to residual income derived from fees paid by cardholders. The Liquidity companies are projecting lucrative cashflow, claiming investors may receive $1,516.72 per portion per month after 18 months and $5,008.62 per month after 24 months.

The profits are purportedly guaranteed. According to the order, the Liquidity companies are even offering investors a 100% written money back guarantee.

The Liquidity companies are accused of concealing important information about their relationships, their contracts and their compensation. They not disclosing material information about their strategies for recruiting and maintaining cardholders. They are not providing material information about their use of money and they are not disclosing the significant risks associated with the business plan, according to the order.

Finally, Jerrard, Liquidity Gold Trust, Liquidity Gold Solution LLC and Liquidity Global Card Solution (PTY) LTD are not registered to sell securities in Texas. Their investments are not registered or permitted for sale in Texas.

The parties have 30 days to challenge the entry of the order.

Read this next

Institutional FX

Finalto expands NDFs line-up with Taiwanese dollar

Finalto announced today that it has expanded its non-deliverable forwards (NDFs) offering with the addition of Taiwan’s dollar to its trading platform.


It’s time for FX to Harness Crypto’s Potential

Jonathan Cumberlidge, FX Sales Director for BVNK, makes the case for cryptocurrencies in improving the efficiency and flexibility of foreign exchange trading.

Digital Assets

Owner of OptionMint, OptionKing, and OptionQueen gets 30 months in prison

A US federal judge has sentenced Ohio resident Jared Davis, who was found guilty for his participation in a multi-million fraud scheme carried out by Israeli-run binary options websites.

Executive Moves

iS Prime co-founders Raj Sitlani and Jonathan Brewer leave, but “business as usual”

“For our clients and teams at iS Prime, iS Risk and iS Prime Hong Kong, it is business as usual. We will be increasing our investment in our technology and staff, putting our clients first as we drive the business forwards to maintain our market leadership position.”

Digital Assets

Germany-focused DekaBank taps METACO for digital asset custody offering

“Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate.”


Eventus launches AML solution for TradFi and digital asset space

“Firms operating in traditional financial markets and digital assets alike are facing greater challenges than ever to protect themselves from those presenting a risk to their businesses and reputations, along with their standing with government regulators.”

Industry News

Qomply launches direct-to-FCA trade report solution that bypasses ARM

“Certainly, for back-reporting large volumes of data, QomplyDirect removes extra ARM fees by offering the flexibility of sending reports directly to the FCA via a firm’s own infrastructure.”

Executive Moves

BNP Paribas AM appoints Geoff Dailey as Deputy Head of US Equities

“Geoff has more than 20 years’ experience in the industry and as a key, senior member of the team with a strong investment pedigree and leadership profile, he is the natural successor for Pam.”

Retail FX

BUX joins forces with BlackRock for iShares ETFs offering in 7 European countries

“By joining forces with Blackrock, a renowned expert in financial markets and products, we have created a good solution for clients that are overwhelmed by the choice of products and don’t know how and when to start investing. Together, BUX and BlackRock can make a real impact on how Europeans invest and approach their financial future.”