Mining Company Is On Verge Of Closing In US
The Texas Securities Board issued an order in which it demands that the Australian mining company shuts down its operation as a matter of urgency. The relevant document is published on the website of the regulatory authority.
The Australian firm allegedly sold securities that were not registered under the state laws, as follows from the statement of the Board.
AWS Mining PTY LTD was selling cloud mining contracts to investors. At the same time, the company lured customers with a quick profit of 200% from any investment. However, the fraudsters avoided paying the promised amount and significantly reduced the profit after signing a contract, explaining that investors took risks consciously.
The company was not registered as a broker-dealer for securities trading. Moreover, contracts for mining services were not registered in Texas as well. The regulator believes that the "entrepreneurs" have violated the state’s securities laws.
It is reported that the company used network marketing to sell its offers and proposed customers to join the business for $20 on its website, after which investors could earn money as sales agents.
AWS Mining also obliged customers to work in the MyCoinDeal wallet, which charged up to 2% of fees for transfers and other transactions. The company hid that it was the wallet operator and also refused to inform clients about the protection measures within the system.
The ruling issued by the regulator forces the company to terminate its operations. However, AWS Mining has 31 days to seek a hearing with the Securities Commissioner. After this period, it will be impossible to make an appeal.
Earlier, a bitcoin drug dealer was sentenced to 20 years in prison in the US.