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Texas orders crypto mining firm promising 200% profit to stop the operation

08 Nov, 2018
by Fifi Arisandi
News
Texas orders crypto mining firm promising 200% profit to stop the operation

Texas financial authorities issued a cease and desist order against a crypto mining firm that promises 200% profit to their prospect investors.

The Texas State Securities Board just issued a cease and desist order against a cryptocurrency mining firm owned by an Australian company, AWS Mining, Pty. Ltd.

The order also applies to several other entities related to the company, they are Automated Web Services Mining (AWS Mining), Mycoindeal, AWS Elite, and West Texas Oilfield Cloud Miners Club.

AWS Mining claimed to mine cryptocurrency through several crypto farms located in Guangzhou, Anhui, Hebei – China, Ingushetia – Russia, and Ciudad del Este – Paraguay.

To lure investors, the company claimed that each crypto mining contract “is guaranteed” of 200% return from purchase price.

However, the order stated that the company disclaims the profitability guarantee and describes that the investors are aware of the risks associated with the investment, despite the aforementioned “promotion strategy”.

The company uses a multi-level marketing system, which is run by Pennsylvania-based AWS Affiliate to recruit sales agents. According to News Bitcoin, the company uses social media platforms to post their sales agent job openings.

The board is convinced that AWS Mining and all its affiliates to have engaged in illegal, fraudulent, deceptive, and/or misleading practices in their business activities. While at the same time, violating the Securities Act as none of them have registered with the state’s Securities Commissioner.

Quoting the order, “The investments in the cryptocurrency mining program are ‘securities’ … Respondents are engaging in fraud in connection with the offer for sale of securities … [and] are making offers containing statements that are materially misleading or otherwise likely to deceive the public.”

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I think they have the right to do that such action to clear things out. As far as my opinion, AWS Mining is a crypto mining company based in Sydney Australia which offers CRYPTO MINING POWER as the service they provide for its client all over the globe. This Crypto Mining Power is the unit used to determine the power they will be distributed or given to its MINERS. This CMP also, is the basis of the bonus/rewards distributed to its miners as part of the team that shares to established the computing system to do all the transactions. And as we all know, we need more machines to do that transactions. Those machines are handled, managed, and owned by AWS Mining. Also to back tracked the record of Cloud Mining, a long time Cloud Mining company received also this kind of issue last March of this Year in South Carolina because of the same concerns and with collaboration of another entity. And in the middle of this year as well, this Cloud Mining company already won the battle and the Securities and Exchange commission lift the order. Its RARE. but its a benchmarked of a long time battle in the cloud mining industry. Whether we like it or not, we must realized that cloud mining is legitimate way to do business in the cryptocurrency industry. And without this datacenters we cannot secure all the transactions and it will caused delays and even slows in the network. I hope that this comment will be published and to enligthened each and everyone in the industry. Thank you and more power Chepicap..
08 Nov, 2018 - 04:43

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