A new batch of suspected crypto scams has recently been recognized by the United States securities regulator, the Texas State Securities Board (TSSB).
On September 03, an Emergency Cease and Desist Order were filed against the two suspected scams, i.e., Forex Birds and PEK Universe, by the Texas Securities Commissioner Travis J. Iles.
Forex Birds Operator Popular As ‘Bitcoin Pope’
As per the report, these two scams were being operated by Kumar Babu Bondesi and Darwin Eric Balusek. While filing its order, TSSB mentioned that in the crypto space, Balusek is popular with the name of ‘Bitcoin Pope’.
The US authority further in its order has stated that the alleged operators of the scheme defrauded the investors by offering fraudulent securities tied to foreign exchange and cryptocurrencies.
Authority also specified that while offering fraudulent securities, Forex Birds told its investors that anyone depositing up to $1 million would be offered up to 11 percent of its gain.
TSSB mentioned that Forex Bird has also lied about being registered with a number of European and Australian authorities.
One Of the Most Active Crypto Regulators, TSSB
While talking about Pek Universe in its order, TSSB stated that the fraudulent scheme promised its investors 2 percent profit on their earnings for 30 days.
It is to be noted that neither Forex Birds nor the Pek Universe had registered themselves in Texas securities.
The official order filed by TSSB has notified that the accused would either have to pay a fine of $10,000 each or have to spend two to 10 years of their lives in the prison. Presently, the US authority has shut down the sites of both the companies.
In the US, TSSB is considered to be one of the most active crypto regulators. They are the first state securities regulator that take action against firms related to cryptocurrencies.
In July 2020, the authority took action against Mirror Trading International and shut all its operation. Mirror Trading International was a crypto scam that was being operated from South Africa.