The Texas State Securities Board has taken action against
Arkbit Capital, issuing a cease and desist order for its involvement in alleged
fraudulent crypto cloud mining activities. Led by Financial Examiner Alexis
Cantrell, the board’s investigation revealed purported deceptive practices by
Arkbit Capital and its associated entities.
Among the accusations, Arkbit Capital stands accused of
employing deceptive image and video manipulation tactics to promote its
investment offerings. The company, along with its affiliates Arkbit Capital
Holdings, ABC Holdings LLC, and ABC Mining, allegedly misrepresented its
operations, claiming to run Arkansas-based data centres for cryptocurrency
cloud mining.
Investors were enticed with promises of significant daily
returns ranging from 1.6% to 2.8% over a 120-day period on digital asset
deposits within a specific range. However, the board’s order asserts that these
promises were unfounded.
Furthermore, Arkbit Capital purportedly used
CoinPayments.Net, a payment processor, to handle transactions for its
investment plans, despite restrictions barring users from certain
jurisdictions, including the United States. It was discovered that the account
holder linked to Arkbit’s CoinPayments account was Paras Khivesara, located in
Hyderabad, India, rather than in Arkansas as claimed.
Additionally, the board highlighted instances of manipulated
media, including a video purportedly featuring the company’s CEO and founder
speaking at a cryptocurrency conference in Austin, Texas. However, no evidence
was found to support the presence of Delmar Estabrook or Arkbit Capital at the
said event.
Official Highlights Risks
In response to these findings, Joe Rotunda, Director of the
Enforcement Division at the Texas State Securities Board, emphasized the
importance of vigilance when encountering social media investment
opportunities.
“This is a common tactic we see in online crypto investment
scams. By appearing to be part of the cryptocurrency industry, bad actors
attempt to seem like legitimate contributors to the space. Don’t be fooled,”
said Rotunda.
This incident adds to a series of Ponzi scheme cases
involving cryptocurrency that have surfaced in the United States over the past
year, reflecting challenges within the digital asset investment landscape.
The Texas State Securities Board has taken action against
Arkbit Capital, issuing a cease and desist order for its involvement in alleged
fraudulent crypto cloud mining activities. Led by Financial Examiner Alexis
Cantrell, the board’s investigation revealed purported deceptive practices by
Arkbit Capital and its associated entities.
Among the accusations, Arkbit Capital stands accused of
employing deceptive image and video manipulation tactics to promote its
investment offerings. The company, along with its affiliates Arkbit Capital
Holdings, ABC Holdings LLC, and ABC Mining, allegedly misrepresented its
operations, claiming to run Arkansas-based data centres for cryptocurrency
cloud mining.
Investors were enticed with promises of significant daily
returns ranging from 1.6% to 2.8% over a 120-day period on digital asset
deposits within a specific range. However, the board’s order asserts that these
promises were unfounded.
Furthermore, Arkbit Capital purportedly used
CoinPayments.Net, a payment processor, to handle transactions for its
investment plans, despite restrictions barring users from certain
jurisdictions, including the United States. It was discovered that the account
holder linked to Arkbit’s CoinPayments account was Paras Khivesara, located in
Hyderabad, India, rather than in Arkansas as claimed.
Additionally, the board highlighted instances of manipulated
media, including a video purportedly featuring the company’s CEO and founder
speaking at a cryptocurrency conference in Austin, Texas. However, no evidence
was found to support the presence of Delmar Estabrook or Arkbit Capital at the
said event.
Official Highlights Risks
In response to these findings, Joe Rotunda, Director of the
Enforcement Division at the Texas State Securities Board, emphasized the
importance of vigilance when encountering social media investment
opportunities.
“This is a common tactic we see in online crypto investment
scams. By appearing to be part of the cryptocurrency industry, bad actors
attempt to seem like legitimate contributors to the space. Don’t be fooled,”
said Rotunda.
This incident adds to a series of Ponzi scheme cases
involving cryptocurrency that have surfaced in the United States over the past
year, reflecting challenges within the digital asset investment landscape.