Texas Takes Action Against Crypto Scams
The Texas State Securities Board (TSSB) is back in the headlines, and not for a barbecue cook-off. On September 3, Commissioner Travis J. Iles issued an Emergency Cease and Desist Order aimed at two alleged cryptocurrency scam operations: Forex Birds and PEK Universe. Yes, folks, this isn’t the plot of a Hollywood thriller, but it sure feels like one!
The Scammers Behind the Schemes
Named in the TSSB’s order are Kumar Babu Bondesi and Darwin Eric Balusek—who, intriguingly, goes by the moniker “Bitcoin Pope.” You might wonder if they exchanged their halos for Bitcoin wallets, but no, it’s their alleged fraudulent activities that have drawn the regulators’ ire, not their fashion choices! Operating overseas, these two are accused of offering securities fraudulently linked to forex and cryptocurrencies.
Promises of Wealth: Too Good to Be True?
Forex Birds, as enticing as it sounds, was reportedly luring investors with the promise of returns reaching up to 11%. Imagine cranking in deposits of up to a million bucks and fantasizing about those sweet returns, only to realize you’re on the financial equivalent of a roller coaster with no safety harness. Meanwhile, PEK Universe played the daily profit game, claiming up to nearly 2% earnings per day for a full month. Smooth talkers, sure, but their licenses? Non-existent. Neither were registered to deal with securities in Texas, talk about a red flag!
Legal Consequences Looming
The stakes couldn’t be higher: the alleged operators are facing fines up to $10,000 and potential prison sentences of two to ten years. An enticing career shift! The duo has until September 31 to request a hearing. In the meantime, their websites are still humming along, showing what is likely a lack of urgency or a whole lot of confidence in their dubious operations.
Texas’ Stalwart Role in Crypto Regulation
It’s worth noting that TSSB isn’t just any regulatory agency; it’s a heavyweight in the U.S. when it comes to battling cryptocurrency scams. They were the first state securities regulator to take an enforcement action against a crypto-related firm back in July 2020, shuttering Mirror Trading International—a multi-level crypto scam that was operating all the way from South Africa. Talk about a global reach for the Texas regulators!
Conclusion: Stay Informed, Stay Safe
The TSSB’s actions serve as an important reminder for investors to tread carefully in the volatile world of cryptocurrency. If something sounds too good to be true, it probably is—kind of like those late-night infomercials promising amazing fitness results while you lounge on your couch. Stay informed, ask questions, and, above all, don’t be the next victim!
