A cryptocurrency firm’s allegedly fake videos have helped land it in trouble with a regulator.
An order barring London-based BTCRUSH from doing business in Texas was issued today after Texas Securities Commissioner Travis Iles found, among other things, that BTCRUSH’s website contained fake videos purporting to show three cryptocurrency mining farms.
In reality, the farms do not exist and the films were stock footage that had been altered.
The BTCRUSH website claimed one of its cryptocurrency mining centers, Hepaestus Farm is operated in a secretive World War II bunker.
“What can be more reliable than a bombproof shelter?” the BTCRUSH promotion asked.
What was also unreliable, in addition to the fake footage of a fake cryptocurrency mining farm, alleged Iles, is BTCRUSH is not registered to sell securities in Texas and its claims are beyond the pale.
On its website, BTCRUSH boasted investors would earn 4.1% interest per day with the ability to turn $10,000 into $149,650 in a year.
The site also promotes a “100 satisfaction guarantee for (its) customers.”
Today, as well, the Securities Commissioner ordered unregistered cryptocurrency operator, Forex EA & Bitcoin Investment LLC to stop doing business in Texas.
The company is promising investors that a $5,000 investment will return a guaranteed $50,000 in 21 days, while intentionally failing to disclose its trading strategy and the widespread risk in trading bitcoin and foreign currencies, Iles said.
He added New York-based Forex EA & Bitcoin Investment is directing Texans to contact the company at a number with a 281 area code, which covers the region in and around Houston.
The stop-doing-business-in-Texas orders bring the number of sanctions against cryptocurrency firms brought by Texas’ securities regulator to nine since December 20.
