Texas Securities Commissioner issues Cease & Desist Order against Coinvaultpro
The authorities are accusing the entity of illegally and fraudulently offering cryptocurrency mining investments to Texas residents.
Texas Securities Commissioner Travis J. Iles has announced the entry of an Emergency Cease and Desist Order against Coinvaultpro. The entity is accused of illegally and fraudulently offering cryptocurrency mining investments to Texas residents.
Coinvaultpro is promising to pay lucrative fixed profits to investors, with the rate of return dependent on the principal investment. The investments are purportedly insured and guaranteed.
Coinvaultpro is alleged to have concealed material information about its strategy for generating and guaranteeing the returns and insuring the cryptocurrency mining investments. It is also failing to disclose considerable risks to investors, according to the order.
Coinvaultpro is touting the expertise of its management team and highlighting their prior experience with “top tech and finance companies.” It claims its managers previously worked for Google, Amazon, Morgan Stanley and Barclays, according to the order.
Another key feature is the purported satisfaction of its clients, as Coinvaultpro is allegedly publishing testimonials on its website. These features are facades, according to the Texan authorities. Coinvaultpro is accused of misrepresenting the identities of its principals and clients and using stock photographs to depict their likenesses.
Coinvaultpro is also allegedly misleading investors by claiming to have a license to deal in the cryptocurrency mining investments. According to the order, Coinvaultpro is not registered to sell securities in Texas, and the cryptocurrency investments are not registered or permitted for sale in Texas.
The Texas Securities Board has now brought a total of 27 enforcement actions against 77 respondents accused of illegally, fraudulently or deceptively offering cryptocurrency investments to Texas investors.