Texas executed regulatory action recently against two cryptocurrency mining companies. The Securities Commissioner for Texas sent EXY Crypto (also known as Execrypto) and AWS Mining PTY LTD. cease and desist letters based on fraudulent activities.
Texas order number ENF-18-CDO-1771 against EXY Crypto specifically names Morgan Nolan, Rafael Logan, and Melissa Spring as involved in the ordeal.
EXY Crypto, including the above-named persons, allegedly offered investments in their cryptocurrency mining program. According to the Texas order, “[t]he advertisements tout the security of the cryptocurrency investments and claim investors will earn at least a 10% return or more on a weekly basis”.
The investors were led to exycrypto.com, or urged to contact the above-mentioned individuals via email or WhatsApp, a popular messaging and calling app.
Nolan informed potential investors that EXY Crypto was “a properly licensed and regulated firm”, and also stated that he was from the U.K, as told by the order.
Logan claimed the success of more than 12,000 investors throughout the past five years, as well as the safety and security of the investments.
Legal conclusions from the Texas order include misleading/deceptive offers to the public, unregistered securities sales, and fraudulent practices associated with securities sales to name a few.
Texas order number ENF-18-CDO-1772 against AWS Mining listed many more involved parties than seen with EXY Crypto. Five individuals were listed, in addition to groups called “MyCoinDeal”, “AWS Elite”, and the “West Texas Oilfield Cloud Miners Club”.
In short, AWS Mining (and those associated) issued cryptocurrency mining investments “referred to as crypto mining power contracts, and they are representing the crypto mining power contracts are ‘guaranteed to 200% profit’ and that each crypto mining power contract ‘is guaranteed to 200% return on purchase price’”, according to the issued Texas order.
The order details that the involved parties offered various bonuses and commissions to multilevel marketers for selling the mining contracts. They advertised “200% passive return on every investment”.
However, according to the Texas order, AWS Mining now attempts to disclaim profit guarantees, warning investors of the inherent risks of investing.
EXY Crypto and AWS Mining join other cryptocurrency scandals this year. In July, CCN reported on Sky Mining CEO Lê Minh Tâm and his $35 million exit scam. An August CCN report showed almost $100 million stolen via ICO exit scams.
Just recently at the end of October, CCN detailed the Oyster Protocol Exit scam, which saw the founder stealing $300,000 in funds.