Texas Cracks Down on Another Cryptocurrency Seller

The Texas Securities Commissioner is continuing its crackdown on unregistered investment pitches tied to cryptocurrency by issuing its fourth emergency cease and desist order.Late last week commissioner Travis J. Iles entered the emergency order against DavorCoin, an entity offering investments in a cryptocurrency lending program in Texas.The emergency order found that DavorCoin told investors they can earn whopping profits by investing in a lending program based on a new cryptocurrency known as davorcoin. Investors allegedly purchase davorcoin (the currency) and then lend it to DavorCoin (the entity).DavorCoin said an investor lending $30,000 in davorcoin can earn $15,390 in the first month of the program and receive $107,217 after 120 days, according to the order.DavorCoin, however, is not providing any details about how it will generate such profits, according to a release from the commissioner's office. DavorCoin also is not disclosing the identity of its principals or its place of business, claiming instead that "due to tax and regulation risks," it "cannot officialize its domiciliation."DavorCoin appeared to step up marketing of its lending program after the closure of another cryptocurrency lending platform, BitConnect.Commissioner Iles on Jan. 4 entered an emergency cease and desist order to stop BitConnect's "illegal and fraudulent offers of a different lending scheme."Iles warned would-be investors about investing in cryptocurrency-backed programs "without determining exactly what they are investing in.""Promoters of fraudulent securitized cryptocurrencies are using technology in a way that conceals their identity and their actions," he said. "Ultimately, investors are investing in nothing more than a promise made through a website maintained by an anonymous group."  Continue reading...

Copyright The Dallas Morning News
Contact Us