The Texas State Securities Board has discontinued the activities of a South African multi-level marketing program that includes cryptocurrency investments in the state.
Securities Commissioner Travis J. Iles said this in a recent statement The company had led investors to send them Bitcoin (BTC), which was to be transferred to unidentified currency brokers for automated trading in artificial intelligence.
Mirror Trading International PTY LTD said it has enlisted unregistered sellers to induce investors to invest money with a 10% return per month. Sellers should promote the program and involve new multi-tier investors and marketers to earn their commissions.
In addition to promoting the program to get rich quickly through an MLM program, the regulatory authorities accused the company and its operator Cornelius Johannes “Johan” Steynberg of misrepresenting or concealing important background information about the owner, the forex broker, and the company have management of your cryptocurrencies and the artificial intelligence used for trading.
Mirror Trading has reportedly exaggerated its performance, claiming to have enrolled nearly 76,000 members from 170 countries, of which 22,500 were enrolled in the past four months.
The tip of the eisberg
Iles named ForexAndBitcoin.com, Michael Cullison, Steve Herceg and Brian Knott as the four MLMs involved in this program. He said his actions were illegal under the laws that require the registration of securities and their sellers.
The agency’s chief compliance officer, Joe Rotunda, said this could only be the tip of the iceberg:
Fraudulent multi-level marketing programs to get rich quickly gain momentum and spread like forest fires on the Internet. We initiated this action to quickly stop the illegal system before it irreparably harms the Texans. “