Any time you invest in cryptocurrencies, due diligence is essential. Unfortunately, scams run wild in this industry.
And if you’re not aware of them, or how to spot them, you could lose a lot of money.
Because let’s face it, greedy scam artists could care less about you.
Texas Shuts Down Three Scams
The Texas State Securities Board just halted the deceitful offerings of investments in three cryptocurrency related schemes.
For example, it just issued a cease and desist order against Coins Miner Investment Ltd, and Digital Bank Ltd.
Big Promises are a Red Flag
It also issued an order against Ultimate Assets, which is charged for offering misleading ROIs and promising to grow an initial investment of $1,000 into $10,000 in three weeks. Any time you hear a promise of turning $1,000 into $10,000, question it. There’s no possible way to turn $1,000 into $10,000 in just three weeks with most investments. If you fall for something like that, rethink your investment strategy.
Coins Miner Charged for Cyber Fraud
Coins Miner used emails and manipulating online media to solicit funds from Texas residents by pretending to represent Coinbase.com. It’s also accused of fabricating photographs to show its “state-of-the-art office.”
It’s amazing what people think they can get away with.
Digital Bank ICO Scam
And then there’s Digital Bank.
The company claimed to be building an external wallet called “Photon Encrypted Ledger Key.”
It also said it was raising capital for an ICO. Worse, it was found to be offering shares issued by the company and the issuance of a utility coin, called DBGK, set for an ICO next year. Then, it allegedly misled people with videos featuring President Barack Obama, used for describing the Photon Encrypted Ledger Key.
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