A U.S. state has issued emergency cease and desist orders to two companies and related persons purportedly engaged in cryptocurrency investment schemes. The first company posted videos of three mining farms composed of online stock images, according to the order. Both companies made numerous materially misleading claims and violated U.S. securities laws.
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Bitcoin Trading & Cloud Mining Limited
Texas State Securities Board.
The Texas State Securities Board has issued “an emergency cease and desist order” to London-based Bitcoin Trading & Cloud Mining Limited, also known as Btcrush. Also included in the order are the company’s sole director and shareholder Jaylon Cross, founder and CEO Bruce Rodgerson, Chief Marketing Officer Robin Lozinski, and sales agent Thomas A. Johnson.
Btcrush is self-described on its website as “a cloud-based cryptocurrency mining company that mines bitcoin and altcoins and profits from selling altcoins for bitcoins.” The company promises an investment return of 4.1% daily interest regardless of the profitability of its mining operations, adding that its main principle is a “100% satisfaction guarantee for [its] customers.” The company claims:
A principal investment of $10,000.00 for a term of 365 days returns approximately $17.08 per hour, $410.00 per day and $149,650.00 per year.
In addition, the company has been recruiting investors as sales agents, promising them a commission of 15% of the principal deposited by the new investors that they recruit.
Bogus Mining Farm Videos
According to the order, Btcrush had posted videos of its three mining farms on its website.
The first mining farm the company claims to operate is the Maverik Farm, which it describes as the “most powerful farm” located “in the mountains.”
The second is
