Cryptocurrency Firm Lands in Trouble for Using Fake Videos to Attract Investors
Rogue means to attract investors
A cryptocurrency firm is in trouble for allegedly fake videos found on its website. The London based firm BTCRUSH has been barred from doing business in Texas after Texas Securities Commissioner Travis Iles found that BTCRUSH’s website contained videos showing three cryptocurrency mining farms. It was revealed that the farms did not exist and the videos were stock footage that had been altered.
BTCRUSH website had claimed that one of its digital currency mining centers called Hepaestus Farm was operated in a secretive World War 2 bunker. The promotion message in BTCRUSH’s website stated: “Is there anything more reliable than a bombproof shelter?”
What actually made everything unreliable is the fact that BTCRUSH is not registered to sell securities in Texas which it claims are beyond the pale. The firm has been boasting its investors would earn 4.1 percent interest per day with the ability to turn 10,000 dollars into 149,650 dollars in a year. They have also been promoting a 100 percent satisfaction guarantee for all the investors and future customers.
Texas seems to be working to ensure that only registered firms operate in their territory. In other news, the Securities Commissioner ordered Forex EA and Bitcoin Investment LLC to stop doing their business in Texas because they are not registered. The company had been promising investors that if they invested 5,000 dollars, they would get a return of 50,000 dollars within 21 days. The problem is that they have not disclosed their trading strategy and the widespread risk of trading Bitcoin and foreign currencies according to Iles.
Iles added that EA & Bitcoin Investment based in New York was directing people from Texas to contact a number which has 281 area code which covers regions in and around Houston. The stop-operations order brings the number of sanctions against digital currency firms banned from doing business in Texas by the securities regulator to nine.