Texas Regulators Take Down Fraudulent Cryptocurrency Cloud Mining Operation

Arkbit Capital Deceptive Practices Exposed

The Texas State Securities Board dealt a significant blow to a fraudulent cryptocurrency cloud mining operation by issuing a cease and desist order against Arkbit Capital on May 28. The order revealed that Arkbit Capital had engaged in deceptive practices to perpetrate an alleged investment fraud.

False Promises and Fake Claims

Arkbit Capital falsely promised investors daily returns of 1.6% to 2.8% for 120 days on crypto deposits ranging from $50 to $49,999. The company claimed to operate data centers in Arkansas for cloud mining various cryptocurrencies, but state regulators found no evidence to support these claims.

Furthermore, Arkbit used fake media assets, including a video of its CEO speaking at a cryptocurrency conference in Austin, Texas. However, investigations revealed that neither the CEO nor the company had attended the event.

Regulators Crack Down on Crypto Ponzi Schemes

The fraudulent activities of Arkbit Capital are part of a wider trend of alleged crypto Ponzi schemes that regulators are actively working to shut down. Recent actions by the U.S. Securities and Exchange Commission and other regulatory bodies have targeted similar fraudulent schemes in the crypto space.

Protecting Investors and Combating Fraud

The Texas State Securities Board’s action against Arkbit Capital is part of ongoing efforts to protect investors from fraudulent crypto schemes and hold bad actors accountable. Regulators emphasize the importance of educating investors about the risks associated with cryptocurrency investments and staying vigilant against potential scams.