cryptocurrency mining company Bitcoin
Trading & Cloud Mining Ltd. said it is no longer accepting
investments from the United States. The company’s statement came less than one
day after the Texas Securities Commissioner entered an Emergency Cease and Desist Order
against the company.
company, known as BTCRUSH, on May 9 amended the terms of service on its
publicly accessible website to say that “use of its current Platform by US
citizens and permanent residents is strictly prohibited.”
company said that “due to local laws and regulations,” it “reserves the right
to block the registrations originating from the USA or from US citizens located
abroad. . .”
language was not on the BTCRUSH website on May 8, the day of the emergency
to the order, BTCRUSH is violating the Texas Securities Act by failing to
disclose any material information about their principals, strategies, finances,
and the extensive technical and regulatory risks of
whose principals list an address in London, is soliciting Texas investors with
the promise of huge returns – a $10,000 investment would return $149,650 in one
year, for instance – from the mining of cryptocurrencies at three massive,
secure computing centers featured in videos on the company's website.
to the order, however, BTCRUSH created videos of its purported computing
centers by manipulating videos available for sale on the internet.
The Securities Commissioner has entered nine
orders against companies illegally or fraudulently selling
cryptocurrency-related investments, some of which have curtailed or closed
their investment programs.