Report: Crypto Investments Plagued By 'Widespread Fraud'

Law360 (April 10, 2018, 7:49 PM EDT) -- The Texas State Securities Board found "widespread fraud" during a monthlong investigation into cryptocurrency investments that has so far resulted in seven regulatory actions, with dozens more investigations open, according to a report released Tuesday.

The regulator's four-week sweep found none of the 32 cryptocurrency promoters it investigated was registered to sell securities in Texas. At least six promoters actively recruited sales agents for their cryptocurrency investment programs without first verifying that the sales agents were registered with the TSSB. At least five promoters guaranteed investment returns as high as 40 percent a month, according to the report.

The agency has...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Attached Documents

Related Sections

Government Agencies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!