Texas Issues Orders to Stop 'Binance Assets' and 2 Other Fraudulent Crypto Investment Platforms

The Texas securities commissioner has entered emergency cease and desist orders to stop three cryptocurrency investment platforms from duping investors in the state. One scheme operates under the name “Binance Assets.” The regulator has found that all three platforms are fraudulent.

Texas Seeks to Stop 3 Crypto Platforms Operating in the State

Texas Securities Commissioner Travis J. Iles entered a pair of emergency cease and desist orders Monday targeting three unregistered online cryptocurrency investment platforms. They are Delta Crypt Ltd. (also known as Binance Assets), Fxsmart Robots, and Digitaly Invest. The latter is not the same company as Digital Invest or Digitally Invest.

The commissioner’s order emphasizes that none of the platforms is registered to sell securities in Texas and their investment plans are not registered or permitted for sale in the state.

The Philippine Securities and Exchange Commission previously issued a public advisory order against Delta Crypt, which claims to be a legit U.K.-registered business. The Southeast Asian regulator warned that the company “was illegally offering securities paying ‘ridiculous’ returns,” urging the public “not to invest or stop investing in any scheme offered” by Delta Crypt, the Texas order describes, elaborating:

Following the issuance of the prior warning, Delta Crypt allegedly removed its website and instead of shutting down operations began a new online investment scheme – this time acting under the names Binance Assets, Binanceassets Ltd. and Bit Kind Ltd.

The company now advertises a variety of cryptocurrency investment plans. For example, the Gold Plan pays a guaranteed 30% return and the Diamond Plan pays a guaranteed 40% return.

The Texas commissioner’s order found the crypto offering by Delta Crypt to be “fraudulent and deceptive.” It accuses the company of “concealing important information about its principals, the warning from the Philippines government, and the risks associated with cryptocurrencies.” In addition, “Delta Crypt has been illegally soliciting sales agents, promising to pay commissions regardless of registration or licensure,” the order states.

The second order names Digitaly Invest and Fxsmart Robots, two investment schemes whose websites are almost identical. The two platforms similarly offer investment plans with guaranteed returns, including the Gold Plan, which pays a guaranteed 30% return, and the Diamond Plan, which pays a guaranteed 40% return. Both websites claim to offer cryptocurrency trading.

Noting that the claims made by the two platforms are found to be fraudulent, the Texas securities commissioner explained:

The parties are allegedly concealing important information – including the identity and qualifications of principals, material financial information, and the significant risks associated with the underlying products.