A regulator in Texas has its sights set on another cryptocurrency-related company as it accuses them of promoting unregistered securities by targeting the U.S. state’s residents.
According to a document that was reviewed by CoinDesk, the Texas State Securities Board (TSSB) has issued a new cease-and-desist order on the February 26th. The order was issued to a company who are based in Panama named LeadInvest.net.
The regulator for the state of Texas has said that it considers the firm’s cryptocurrency programs that it uses to mine and trade cryptocurrency to be unregistered security offerings and in addition to this, LeadInvest is also using fake stock images to portray its team members.
The TSSB details that the company’s website and promo materials have allegedly been making deceptive and misleading statements when soliciting Texas residents. By promising returns between 20 to 100 percent, within 1 to 3 months through the firm’s cryptocurrency services that it offers regarding various mining techniques and trading services.
The regulator also states that the web profile images of the staff within the company are stock photos of models that can be purchases at image vendors, or they are simply images of people with no link or connection to the company whatsoever.
TSSB has made the allegation that can be found in the document, that as of February 26th, the company has collected over $177 million from over 190,000 accounts.
This new cease-and-desist order joins a long list of orders that indicate the efforts of the TSSB who are scrutinizing cryptocurrency based investment programs that go after residents who reside within the state.
In this February alone, the board has already filed a number of cease-and-desist orders to 2 other companies, who are conducting an ICO and a cryptocurrency lending project.
Further details are yet to be received.