Texas Securities Commissioner issues Cease & Desist Order against EXY Crypto

Maria Nikolova

EXY Crypto has not been registered with the Securities Commissioner as a dealer.

Texas Securities Commissioner Travis J. Iles has signed a Cease & Desist Order as to EXY Crypto, aka EXECRYPTO, Morgan Nolan, Rafael Logan and Melissa Spring.

The respondents, all of whom are from Quebec, Canada, are offering investments in a cryptocurrency mining program issued by EXY Crypto. The respondents use LinkedIn to promote the offer. The advertisements tout the security of the cryptocurrency investments and claim investors will earn at least a 10% return on a weekly basis. The advertisements also claim that EXY Crypto is a licensed and/or registered company.

Furthermore, the EXY Crypto website is publishing photographs of people purporting to be investors in EXY Crypto. However, these photographs are not of actual investors in the entity, and EXY Crypto is falsely attributing testimonials to these persons.

Also, EXY Crypto has not been registered with the Securities Commissioner as a dealer.

The respondents are said to have failed to disclose material facts about EXY Crypto, including the identity, the experience and qualifications of its principals, as well as its assets, liabilities and capitalization. The respondents have also failed to disclose a number of material facts about EXY Crypto’s mining operations, such as the type of hardware used to mine cryptocurrencies.

The authorities have concluded that the respondents are engaging in fraud in connection with the offer for sale of securities, making statements that deceive the public, and causing irreparable harm.

The Texan authorities have been active in their fight against cryptocurrency-related fraud. In July this year, for instance, Travis J. Iles took emergency action to stop a network of companies – including Mintage Mining LLC, Symatri LLC, and NUI Social, from fraudulently offering cryptocurrency investments to Texas residents.

Let’s note that, in 2018, the efforts to put an end to cryptocurrency fraud accelerated. One of the results of these efforts is “Operation Cryptosweep”. In an announcement published in late August, the North American Securities Administrators Association (NASAA) said that over 200 active investigations of Initial Coin Offerings (ICOs) and cryptocurrency-related investment products were underway by regulators in the United States and Canada as part of “Operation Cryptosweep.” Since its launch in May, this campaign has led to 47 enforcement actions involving ICOs or cryptocurrency-related investment products. In the end of May, the number of such actions was 35.

  • Read this next

    Market News

    Eurozone Fights Stagnation Whilst Stock Indices Rally

    European stock markets are defying economic gloom as they continue to soar to all-time highs, showcasing resilience amidst broader economic challenges.


    Lisk Partners with Indonesia’s Communications Ministry to Boost Web3 Startup Ecosystem

    Discover the strategic partnership between Lisk and the Indonesian Ministry of Communications and Informatics, aimed at propelling local Web3 startups to new heights through comprehensive support and education.

    Executive Moves

    Admirals appoints founder Alexander Tsikhilov as CEO

    “Striking the right balance between sourcing new talent and developing and harnessing the strength and capabilities of our current workforce, is key to achieving our vision.”

    Executive Moves

    GCEX appoints Ignacio Corral and Helen Man to UK operation

    GCEX has announced the appointment of Ignacio Corral and Helen Man to its UK FCA-regulated operation based in London as the firm further expands its global business on account of increasing demand for its digital prime brokerage services.

    Retail FX, Uncategorized

    Public.com to shut down UK operation after eight months

    Public.com’s UK withdrawal reflects broader market dynamics, where increased competition among retail investing platforms, including newcomers like Robinhood and Webull, pressures companies to consolidate their efforts in their most profitable or strategic markets.

    Industry News

    UK FCA commits to swifter enforcement actions

    “Reducing and preventing serious harm is a cornerstone of our strategy. By delivering faster, targeted and transparent enforcement, we will reduce harm and deter others. We will also make greater use of our intervention powers to stop harm in real time.”

    Digital Assets

    Ultimate Crypto Trading Software: Zent Launches Innovative Platform For All Institutional Needs

    Zent, a pioneering software provider for financial institutions, has unveiled its all-in-one platform for high-speed crypto trading across popular exchanges. The “ultimate tool tailored to institutional teams and trading volumes” offers distinct advantages, eliminating hurdles like delays and market impact.

    Digital Assets

    OKX officially launches Turkish crypto trading platform

    “With a crypto adoption rate close to 50%, Türkiye represents a very dynamic and promising market for the industry as it continues to develop. The population’s high level of engagement and understanding of digital assets makes it an ideal environment for OKX, and we’re strongly committed to helping continue to grow this already vibrant ecosystem.”

    Retail FX

    ZA Bank launches US stock trading service ZA Invest

    ZA Invest provides access to over 6,000 US stocks and 3,000 ETFs, and a promotional USD savings interest rate of up to 10% p.a. for eligible users.