Arkbit falsely claimed to run data centers in Arkansas for cloud mining various cryptocurrencies.
The Texas State Securities Board has issued a cease and desist order against Arkbit Capital for engaging in fraudulent crypto cloud mining activities.
According to the order, Financial Examiner Alexis Cantrell and the Texas State Securities Board discovered that Arkbit Capital and its associated entities used deceptive image and video manipulation techniques to promote their investment schemes.
Arkbit Capital, along with Arkbit Capital Holdings, ABC Holdings LLC, and ABC Mining (collectively known as “Arkbit”), falsely claimed to operate data centers in Arkansas for cloud mining various cryptocurrencies.
They offered investments promising daily returns of 1.6-2.8% for 120 days on digital asset deposits ranging from $50 to $49,999.
The order also alleges that Arkbit Capital used CoinPayments.Net as a payment processor to facilitate payments for their investment plans, despite CoinPayments.Net’s policy restricting users from certain jurisdictions, including the United States.
The account holder for Arkbit’s CoinPayments account was found to be Paras Khivesara, located in Hyderabad, India, not Arkansas.
One of the manipulated videos used by Arkbit Capital purportedly showed their CEO and founder speaking at a cryptocurrency conference in Austin, Texas. However, the Texas State Securities Board found no evidence that Delmar Estabrook or Arkbit Capital attended the conference.
Summary Review: Texas State Securities Board‘s decisive action against Arkbit Capital underscores the importance of vigilance and regulation in the cryptocurrency market. By exposing and shutting down fraudulent schemes like Arkbit’s, regulators protect investors from deceitful practices and uphold the integrity of the financial system. The case of Arkbit serves as a reminder for investors to conduct thorough due diligence and remain cautious when engaging with cryptocurrency investments, especially those promising unrealistic returns. As the crypto market continues to grow, robust regulatory oversight will be crucial in fostering a secure and trustworthy investment environment.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
