Two states sanction South African companies for fraud with debit cards in cryptocurrency

The authorities of Texas and Alabama have issued injunctions to South African fraud-promoting companies of cryptocurrency credit cards.

According to an announcement by the Texas State Securities Board (TSSB) and the Alabama Securities Commission (ASC) dated Aug. 14 At the same time, injunctions were issued against Lance Angus Jerrard and the South African companies Liquidity Gold Trust, Liquidity Gold Solution and Liquidity Global Card Solution.

The company and Jerrard are alleged to have committed fraud promoting a product called Liquidity Card on social media and on a local Austin radio stationand falsely claim that investors have a guaranteed opportunity to make money while staying home during the pandemic. According to reports They said the card was “a Mastercard that works like a traditional debit card“.

Two states sanction South African companies for fraud with debit cards in cryptocurrency
Two states sanction South African companies for fraud with debit cards in cryptocurrency

Companies have used their advertising time to claim that their product would help cardholders avoid taxes by receiving and spending the proceeds as stable coins., including USD Coin (USDC), TrueUSD Coin (TUSD) and PAX Coin (PAX).

“The prospect of guaranteed monthly income in times of economic uncertainty can seem like a dream come true.”said TSSB boss Joe Rotunda. “Unfortunately, Cryptocurrency fraud usually does not back up promises of prosperity with facts and evidence. In the end, it’s often smoke and mirrors with a technical twist“.

How the scam works

According to reports The campaign was due to begin in October “with the aim of recruiting 8 million cardholders in 36 months”.According to the announcement.

The plan is to recruit new members and have them invest at least $ 1,150 in one or more of the 8,400 parts of the Liquidity Global Projects Association. Investors could allegedly earn residuals on fees paid by liquidity cardholders.

The TSSB announcement states:

Liquidity firms predict lucrative cash flow, claiming that investors can get $ 1,516.72 per serving per month after 18 months and $ 5,008.62 per month after 24 months. Profits are supposedly guaranteed. According to the mandate, the liquidity companies offer investors a 100% money back guarantee on written money. “

According to the injunction, these claims are fraudulent. Additionally, the three Liquidity and Jerrard companies are not registered for the sale of securities in Texas. The TSSB reported this They had withheld from potential cardholders important information about the risk involved in the system and how they could get a return on their investment.

Jerrard and its affiliates have 30 days to contest the injunction.

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