Texas Watchdog Takes Down Alleged Crypto Scam Arcbits

IconCryptoNewsTerminal Staff29 May, 2024

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Texas Watchdog Takes Down Alleged Crypto Scam Arcbits

The Texas State Securities Board recently issued a cease-and-desist order against local company Arcbits Capital for its involvement in a fraudulent cryptocurrency cloud mining scheme. The board stated that Arcbits Capital and its affiliates engaged in the scam by manipulating images and videos. Arcbits also misled investors by falsely claiming that it operates a data center in Arkansas for cryptocurrency cloud mining. The board's investigation found that Arcbits Capital used fake testimonials and doctored images to create the illusion of a legitimate business. The company also promised investors unrealistic returns on their investments, which were never actually paid out. As a result of the board's order, Arcbits Capital is now prohibited from selling or offering any securities in Texas. The company must also return all money that it raised from investors in the state. The Texas State Securities Board is responsible for protecting investors from fraud and other illegal activities. The board's cease-and-desist order against Arcbits Capital is a warning to other companies that may be considering engaging in similar scams.

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