Texas Regulator Issues a Cease-and-Desist Order Against Scammers Impersonating Binance

The Texas securities regulator has issued an emergency cease and desist order against a fraudulent cryptocurrency investment platform. Interestingly, the project’s latest initiatives included impersonating the world’s leading crypto exchange – Binance.

Crypto Scam Impersonating Binance Halted in Texas

According to the statement, Securities Commissioner Travis J. Iles issued the cease-and-desist order against the alleged scam that he described as an “illegal so-called get-rich-quick scheme fraudulently touting the payment of significant returns with little or no risk.”

It started as a company called Delta Crypt Limited – a business registered with Companies House (the UK’s registrar of companies). It claimed that it operated an online investment platform.

However, the Enforcement and Investor Protection Department of the Philippines Securities and Exchange Commission issued a public Advisory Warning after discovering signs of illegally offered securities. The agency advised potential customers “not to invest or stop investing in any schemes offered” by Delta Crypt.

Upon being targeted by the authorities, the platform changed its name and began impersonating the popular crypto exchange Binance. It shut down its website, halted its known operations, but opened another online investment scheme under three new names – Binance Assets, BinanceAssets LTD, and Bit Kind LTD.

Commissioner Iles said that the new initiative has several membership subscriptions that offered false returns.

“According to today’s order, the respondent is now advertising cryptocurrency investments in various plans. The pitch is relatively simple – invest a little, gain a lot, and don’t worry about risk. In fact, the ‘Gold Plan’ pays a guaranteed 30% return, and the ‘Diamond Plan’ pays a guaranteed 40% return.”

No Place in the Lone Star State

The statement further highlighted another similar scam which was focused on investments tied to forex trading, spot metals, CFDs, precious metals, and oil and gas products. Nevertheless, the Commissioner announced that it would face the same faith while warning investors to be vigilant of products offering exceptionally high guaranteed returns.

“Bad actors continue to use online means – such as internet websites and social media platforms – to broadly market ‘risk-free’ scams to Texas investors.

These folks flock to the Lone Star State, and investors should be very wary of promoters touting guaranteed lucrative returns through online media and should thoroughly investigate any offering before investing their money.”