Arkbit Capital, along with connected companies, faces a cease-and-desist order from the Texas State Securities Board for fraudulent crypto cloud mining operations.
Arkbit Capital is the target of a cease-and-desist order from the Texas State Securities Board for its fraudulent cryptocurrency cloud mining operations. The Texas State Securities Board, under the direction of Financial Examiner Alexis Cantrell, issued the order after concluding that Arkbit Capital and its connected companies had committed fraud, including manipulating images and videos in order to deceive investors about their investment plans.
Arkbit Capital False Crypto Investment Scheme
Arkbit Capital, Arkbit Capital Holdings, ABC Holdings LLC, and ABC Mining (collectively, “Arkbit”) made false claims that they operated data centers in Arkansas for the purpose of cloud mining several cryptocurrencies.It made investments in digital asset deposits between $50 and $49,999, promising daily returns of 1.6-2.8% for 120 days.
Additionally, the order asserts that Arkbit Capital used CoinPayments.Net, a payment processor, to process payments for its investment plans despite CoinPayments.Net’s policy prohibiting customers from using it in certain countries, including the US.
We found that the owner of the Arkbit CoinPayments account is Paras Khivesara, who lives in Hyderabad, India, not Arkansas.A video purportedly featuring Arkbit Capital’s founder and CEO speaking at a cryptocurrency conference in Austin, Texas, was one of the doctored movies the company utilized.
The Texas State Securities Board, however, was unable to locate any proof that Arkbit Capital or Delmar Estabrook attended the meeting.Joe Rotunda, Director of the Enforcement Division of the Texas State Securities Board, cautions the public to exercise caution when dealing with social media investment possibilities and to do extensive research on any transaction before transferring money.
This is just one of many cryptocurrency-related Ponzi scheme cases that have surfaced in the US over the last 12 months.The U.S. Securities and Exchange Commission (SEC) exposed the $300 million Ponzi scheme on March 15, targeting cryptocurrency investors from the Latino community in the United States.
The scheme operated under the guise of CryptoFX, a cryptocurrency trading platform.A New York jury found two people guilty on March 18, a few days later, of serving as marketers for the now-defunct IcomTech fraudulent cryptocurrency mining and trading operation.
On April 4, Irina Dilkinska, the former head of compliance and legal for the OneCoin scam, which involved millions of dollars, received a four-year prison sentence after admitting to her involvement in money laundering.