Agency securities Texas issued an order on the termination of unlawful activities of another cryptocurrency company DavorCoin. In his latest statement, published on 2 February, the Council for the securities of the state of Texas (TSSB) argues that DavorCoin releases of unregistered securities with fraudulent and misleading information to attract investors.
The document was signed a few days after the TSSB issued similar orders in respect of the ICO project R2B Coin and BitConnect, bitcoin and other cryptocurrencies, the company charged with fraud and forced to soon cease activity on the territory of the United States.
TSSB claims that DavorCoin works like BitConnect and attracted the attention of the regulator after BitConnect ceased operations. According to the Agency, DavorCoin also launched a loan program that promised investors a significant ROI, but fall within the definition of unregistered securities.
Based on the document to potential investors to participate in the loan program it was necessary to purchase a token of the project using other cryptocurrencies:
«At approximately 17.30 PM, Central standard time January 26, 2018, the company DavorCoin posted the information that an investor who invests $ 30,000 in DavorCoin and selecting the «hold period» of 120 days, can make $ 513 a day, 3 591 dollar in seven days, 15 $ 390 for 30 days and 107 217 dollars for the «day of the release of capital,» August 23, 2018.»
TSSB also claims that the project is a fraudulent investment because DavorCoin deliberately concealed material information about its business, including its principles and location of the company, and how she plans to fulfill investment promises made to the investors.
The ban on the activities DavorCoin further demonstrates the increased interest of the Texas regulator against companies engaged in investments related to cryptocurrencies. The Agency said that although the injunction is not directed at the regulation of cryptocurrencies, and it will continue to monitor cryptocurrency projects, offering investors a profit.