High-profile cryptocurrencies attract fraudsters as well as investors.

Last week, Texas issued an emergency cease and desist order against a fraudulent cryptocurrency trading program. Both Texas-based C3 Data Services and UK-based Bitles Ltd are accused of offering fraudulent products and are no longer authorized to sell securities in the state.

According to the order, the companies used the following claims to lure investors:

  • They have proprietary algorithmic trading software that lets them trade across various crypto exchanges
  • They can pay daily returns of 0.3% to 6.0% on cryptocurrency and U.S. dollar investments
  • Their BTL crypto tokens will appreciate by as much as 10% to 60% per month

The Texas State Securities Board (TSSB) says these claims are all false.

Joe Rotunda, TSSB Enforcement Director, warned the recent sharp increase in cryptocurrency prices is fertile ground for scams. “Unfortunately, promoters of illegal crypto-get-rich-quick schemes are…

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