The Missouri Secretary of State Securities Division has issued a cease-and-desist order against St. Louis-based cryptocurrency company Mavixbtc Limited for allegedly misleading investors.
According to the state regulator, Mavixbtc website contains a dozen allegations, including that the company is registered with the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation. Maxixbtc also fraudulently used the registration number of a registered investment adviser who had no knowledge or connections with this company.
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Mavixbtc is also facing civil penalties and investigation costs of $31,000 for representing themselves as a brokerage and investment company. In addition, the officials said that Mavixbtc fraudulently promoted its services by touting investment returns of up to 55 percent in as little as six days. At the request of the division, the domain host for the company’s website also complied with the cease and desist order.
“Scam artists commonly use professional looking websites to promise immense investment returns, but don’t be fooled. If something sounds too good to be true, it probably is. If you have any doubts, contact our office before you invest. We can tell you if an agent or firm is registered to offer securities,” Securities Commissioner David M. Minnick said.
Crypto scams surpassed those involving traditional assets
An annual report by another state regulator, the Texas State Securities Board, shows how cryptocurrency activities, which did not merit a mention a few years ago, were among the watchdog’s top priorities last year. Crypto-related scams have even surpassed those involving traditional asset classes such as stocks, futures, etc.
The annual report also called attention to several recent enforcement actions, including those involving hybrid fraudulent schemes.
Texas’ watchdog is one of the most active state regulators in the crypto arena, joining federal authorities in going after businesses trying to avoid proper registrations.
More recently, the agency also warned Texans about persons that approach victims of the now-defunct pyramid scheme BitConnect claiming that, for a $250 fee, they can help them recover their investments.