Emergency Cease and Desist Order Issued

The Texas State Securities Board didn’t waste any time when it came to tackling unregistered securities. They’ve slapped an emergency cease and desist order on Australian cloud mining company AWS Mining PTY LTD. This announcement came in hot on November 6, leaving many scratching their heads—how did we get here?

What’s the Deal with AWS Mining?

AWS Mining seems to have taken the phrase “nothing ventured, nothing gained” to a whole new level. This company, alongside its charming Chief Marketing Officer Josiah Kostek, has been accused of selling cloud mining power contracts that promise investors a jaw-dropping 200% passive return. Sounds too good to be true? Well, they definitely didn’t register any of these offerings with the state, which is where the trouble began.

Multi-Level Marketing Matrix Madness

If the 200% didn’t raise eyebrows, the $20 to join their multi-level marketing (MLM) program surely did. Once you fork over those Andrew Jacksons, you’re not just a buyer; you’re a sales agent, racking up commissions in a scheme that has more layers than an onion.

Where Did the Investors’ Money Go?

But what about the profits that wowed everyone? According to reports, AWS Mining has backpedaled on its commitment to deliver those coveted returns, claiming investors “assume the risks associated with the investment.” That’s corporate speak for “you’re on your own.” This raises a red flag: what exactly were investors signing up for?

Wallet Issues and Transparency Trouble

Moreover, to even engage in AWS’ crypto mining program, investors needed a digital currency wallet that was eerily provided by MyCoinDeal. This wallet comes with fees—oh joy! What’s worse? AWS Mining allegedly failed to disclose that they are, in fact, the business name holder of MyCoinDeal. Transparency? What’s that?

The Clock is Ticking for AWS

The stakes are high, and AWS has 31 days to request a hearing with the Securities Commissioner. If they don’t? Well, let’s just say the order will become final, and non-appealable—like a bad Netflix show that keeps getting renewed. And this isn’t the first time the Texas State Securities Board has dropped the hammer on crypto firms engaging in shady practices. Their vigilance is a wake-up call for everyone in the crypto space to keep their operations above board.