Texas regulators ban again, to stop encryption currency lending platform activities

nBankruptcy Commentary: Earlier this month, regulators issued another injunction to stop the encrypted currency loan program after the Texas Securities Commission (TSSB) issued an emergency ban last month to stop cryptocurrency-related activities of a Hong Kong company, R2B Coin DavorCoin’s activity. The document alleges that the company’s business activities are unregistered securities and are suspected of attracting investors with fraudulent and misleading information. This shows that the securities firms in Texas are increasingly concerned about cryptocurrency-related investments.n
nTranslation: Clovern
Texas securities regulators have recently issued another emergency ban centered on cryptocurrencies, the ban against a loan called DavorCoin.n
The latest version of the document signed by the Texas State Securities Commission (TSSB) on February 2 states that DavorCoin has been issuing unregistered securities to attract investors with fraudulent and misleading information.n
Just days earlier, TSSB issued a similar injunction against BitConnect, a cryptocurrency exchange and loan program, for the first overseas digital tokens distribution project called R2B Coin. BitConnect is facing bankruptcy and class actions after being accused by TSSB.n
TSSB alleges in the file that DavorCoin operates in a manner similar to BitConnect, with DavorCoin appearing and attracting regulatory attention after BitConnect stops its business.n
According to the agency, DavorCoin also introduced a loan program that promises investors a high return on investment, which is the agency’s definition of unregistered securities.n
According to the documents, potential investors need to purchase a project tokens called DavorCoin, borrowing in other cryptocurrencies.n
Document states:n
n”On January 26, 2018, at about 5:30 pm CST, DavorCoin said investors will receive $ 513 a day using DavorCoin loans and a 120-day ‘lock-in’ period, and $ 3591 every 7 days Proceeds, the principal release date will receive a gain of $ 107,217 by August 23, 2018. “n
nThe TSSB also alleges the project is an investment fraud because DavorCoin intends to hide information about its key businesses – including its principles and place of business, as well as its plans to make its investment commitments to investors.n
The DavorCoin ban shows once again that Texas securities agencies are increasingly paying attention to cryptocurrency-related investments.n
The agency said it will continue to monitor cryptocurrencies designed to generate returns for investors, though its mission is not to regulate cryptocurrencies.n
In a statement to CoinDesk, TSSB executive Joseph Rotunda commented:n
n”These illicit and fraudulent securitization cryptocurrencies poses a serious threat to traditional investors as cryptocurrencies continue to attract widespread media and public scrutiny.” In the absence of any reference to the terms of the product, the identity and eligibility of the responsible person, and the issue-related The fair indication of material risks, traditional investors may suffer irreparable damage. “n
nAs of press time, reporters can not contact DavorCoin to comment.n

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