Three Crypto Scams Curbed by Texas

ICO Scams

The State Security Board of Texas has stopped offerings from three crypto related schemes. The government agency has put forward a cease and desist order against DigitalBank Ltd, Ultimate Assets and Coins Miner Investment Ltd. This order has been enforced due to misleading ROI and advertising. The companies had promised that the user’s investment would grow from $1,000 to $10,000 within three weeks.

Coin Miner

According to the report, Coin Miner was found guilty of using social media and emails to solicit funds. The company was impersonating Coinbase, the San-Francisco based crypto platform.

Ana Julia Lara, affiliate, Coins Miner was the person behind the fake emails. Furthermore, she claimed to be the vice president of the CoinTelegraph Media Group. The company was also guilty of presenting false photographs of their state-of-the-art office and they used stock photos as employees. The company went even further to publish videos of its servers, financial capabilities, and facilities.



The second order was issued to DigitalBank. The company claimed that it was building an external wallet named “Photon Encrypted Ledger Key” while raising funds of its ICO. DigitalBank also claimed to offer shares and a utility coin called DBGK, which is planned for an ICO in 2019.

The company told the investors to purchase DGBK at $0.50 and sell it for $10 during the ICO, with this strategy, a $5,000 investment would reach $100,000. The Texas Securities Board said that that the ICO was misleading the investors on the actual profitability of the company by concealing important information. The company also posted videos of former US President Barack Obama talking about the Photon Encrypted Ledger Key. Notably, the video was created in 2016, long before DigitalBank was formed.


Ultimate Assets

The third order was issued against Ultimate Assets, the company that promised guaranteed ROI of 900 percent in Forex and Bitcoin trading. John Jason Woodard and Daniel Dishmon were the people behind the crafting of these advertisements. The company promised excessive returns to the investors. For instance, an initial investment of $500 would give a return of $5,000 and so on. The company claimed that their platform is risk-free and the results are guaranteed.

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