Texas Securities Commissioner orders cryptocurrency mining firm to repay investors

Maria Nikolova

AWS Mining, aka MyCoinDeal, has agreed to settle the case brought by the Texan authorities through the entry of an order which stipulates the respondents have to provide refunds to investors.

An Australian company that promised returns of up to 200% on investments in cryptocurrency mining has agreed to refund money to Texas investors and has admitted it illegally sold unregistered securities.

Under the Order entered August 2, 2019, by Texas Securities Commissioner Travis J. Iles, AWS Mining PTY, based in Sydney, Australia, is paying 19 Texas residents the full amount of their investment minus any profits they received.

AWS Mining operates as AWS Mining and MyCoinDeal. The latter provides digital wallet services for cryptocurrency investments issued by AWS Mining.

The Texas Securities Commissioner took emergency action against the AWS companies in November 2018. Back then, the authorities determined that the AWS companies were illegally recruiting sales agents through LinkedIn, Facebook, and other online marketing channels.

AWS Mining claimed it was mining cryptocurrency in computing facilities in China, Russia, and Paraguay. According to the initial order, AWS claimed the contracts are “guaranteed to 200% return on purchase price.”

Although investors were told they would receive a 200% return on the purchase of the contacts, AWS Mining also disclaimed the guarantee. The company said investors would bear the risks of mining cryptocurrency, which include volatility in the price of cryptocurrencies, system or technical failures, and changes in the cost of electricity used to power and cool hardware.

According to the emergency action, AWS Mining used a multilevel marketing network of sales agents to sell the mining power contracts and paid as many as six different types of bonuses and commissions to these sales agents.

The Texan authorities have been very active in combatting fraud related to cryptocurrencies. In June this year, Texas Securities Commissioner Travis J. Iles entered three emergency cease and desist orders against promoters of fraudulent cryptocurrency-related investments who are soliciting Texas residents through Facebook “work from home” forums.

Read this next

blockdag

These Altcoins Have The Potential To Make You a Millionaire in 2024

The crypto market is witnessing a surge, and certain alternate coins are catching attention for their rapid growth.

Digital Assets

Point72 invests $77.5 million in Bitcoin, Morgan Stanley holds $269.9 million

Point72, the $34 billion hedge fund owned by billionaire and New York Mets owner Steven Cohen, held $77.5 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) at the end of the first quarter, according to a recent filing.

Digital Assets

Binance claims Nigerian officials sought $150 million bribe

A Nigerian court has ruled that Tigran Gambaryan, a Binance executive detained on charges of tax evasion and money laundering, can stand trial on behalf of the world’s largest cryptocurrency exchange.

Digital Assets

Kraken reviews Tether listing in Europe ahead of MiCA adoption

Cryptocurrency exchange Kraken is “actively reviewing” whether to delist the stablecoin Tether (USDT) from its European platform, according to a report by Bloomberg.

blockdag

Discover How MoonBag Coin Presale Stacks Up Against Dogecoin & Litecoin

Discover how the MoonBag Coin presale compares to Dogecoin and Litecoin, with unique features, a robust presale structure, and new opportunities in 2024.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: Federal Reserve Policy, USD, May 17 ,2024

Overall, both the Federal Reserve’s policy and the US dollar’s outlook are shrouded in some degree of uncertainty.

Market News, Tech and Fundamental, Technical Analysis

Ethereum Technical Analysis Report 17 May, 2024

Ethereum cryptocurrency can be expected to rise further toward the next resistance level 3200.00, which is the top of the previous impulse wave i.

Digital Assets

Hong Kong adopts digital yuan payments through Chinese banks

Hong Kong has launched a pilot program enabling digital yuan payments through major Chinese banks, marking the first instance of China’s digital currency project being deployed outside the mainland.

Retail FX

Saxo Bank increases client assets five-fold to $116 billion

Copenhagen-based broker Saxo Bank has achieved a major milestone, surpassing $116 billion (DKK 800 billion) in client assets.

<