Despite how people portray it, the cryptocurrency market is far from perfect. There are still a vast variety of scams that exist along with projects that do not have the best intentions in mind for consumers. Forbes reported that on Tuesday, the Texas State Securities Board issued statements which called for two cryptocurrency firms to cease their operations on Texan soil.
Texas State Securities Board And BTCRUSH Square Off
On Tuesday, the Texas State Securities Board called for BTCRUSH, a self-described cryptocurrency mining firm, to cease their business operations within the state. The Securities Board found that the services which BTCRUSH were promoting were not allowed to be sold in Texas without proper licensing. Even if the company had obtained the required licensing, the agency determined that the company’s operations were fraudulent.
Texas Securities Commissioner Travis Iles found that the information and the videos shown on the BTCRUSH website claiming to depict their mining operations were fake. The website claims that one of their mining farms is located in a “bunker of second world war times” and displays video footage purporting to be of the actual farm. The videos and subsequent statements given were a red flag for the securities commissioner who decided to further investigate the legitimacy of the videos. Once further analysis of the videos was completed, it was found that the videos were online stock footage, altered to fit the BTCRUSH narrative and its goals.
The Texas State Securities Board also brought into question the unusually high 4.1% daily returns which BTCRUSH promises.
A 4.1% daily return would take an initial investment of $10,000 and generate a profit of nearly $150,000 over the course of just one year. This staggering 1500% return would dwarf any return a traditional investment which retail investors could make.
To give this number a bit of context, the S&P 500, one of the most prominent indexes on the stock market, has had an average yearly gain of 9.7% over the past 90 years. If BTCRUSH did deliver on what they claimed, they would have beat out the S&P by over 150 times.
If this investment opportunity sounds like it is too good to be true, that is because it is. Despite a lack of information and sentiment about the site online, it has become clear that the operation has no legitimacy and comes without the promise of a “100% satisfaction guarantee.” […]