The Missouri Secretary of State Securities Division has despatched a cease-and-desist letter to an unregistered crypto agency.
Announced Wednesday, Mavixbtc Limited was ordered to halt operations after allegedly deceptive traders. Mavixbtc faces civil penalties and investigation prices of over $30,000 for its fraudulent illustration as a brokerage and funding firm.
To garner clients, St. Louis-based Mavixbtc started providing funding companies promoting returns of 55 % “in as little as 6 days,” based on the secretary of state’s workplace.
The workplace additionally alleges:
“Mavixbtc falsely claims to be registered with the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation. The company also fraudulently uses the registration number of a registered investment adviser representative who has no knowledge of Mavixbtc.”
“The novelty and promise of quick profits by investing in cryptocurrencies can be enticing to investors,” Securities Commissioner David M. Minnick stated.
“But there are significant, real risks associated with these non-traditional investments, and scam artists are hard at work trying to defraud investors. Always check with our office before you invest.”
The division supplied Mavixbtc the chance to make a case for why restitution shouldn’t be imposed.
The North American Securities Administrators Association (NASAA) launched the second wave of “Operation Cryptosweep,” an initiative to crack down on crypto associated scams. As of August, 35 enforcement choices have been taken and practically 100 extra are pending.
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