Texas Watchdog Accuses South African Firms of Crypto Fraud

The Texas State Securities Board (TSSB) is following through on its promise to crack down on cryptocurrency fraud. Today, the TSSB ordered Lance Angus Jerrard to cease operations immediately, alleging the South African resident operates a double-your money scam.

The SEC calls Jerrard the mastermind of Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term Gold Trust, Liquidity Gold Solution LLC and Liquidity Global Card Solution (PTY) LTD, which lured investors with claims of major credit card partnerships and misrepresentations about their products.

According to TSSB documents, these particular crypto fraud artists were caught running advertisements on a local radio station broadcasting in Austin, Texas.

Additionally, the watchdog alleges that these companies are promoting the Liquidity Card, a self-described crypto Mastercard that uses stablecoins to function as a traditional debit card. The scammers alleged they work with well-known stablcoin issuers including USD Coin (USDC), TrueUSD Coin (TUSD) and PAX Coin (PAX).

“The Liquidity companies are allegedly attempting to capitalize on the hype, incorporating stablecoins into traditional financial transactions. According to the order, they are touting the benefits of using stablecoins and the Liquidity Card, specifically representing cardholders can use the Liquidity Card to receive and spend profits as stablecoins, avoiding taxes that would otherwise be recognized when converting Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term to dollars or other fiat currencies,” the TSSB said.

The board alleges the Liquidity companies is perpetuating a multilevel marketing scheme that sells fraudulent investments to Texans and investors elsewhere. They hired multilevel marketers to promote its fraudulent investment opportunities by promising them lucrative commissions based on how well they buy 'portions' in their project partnership.

Their most recent ad claims each portion costs $1,150 and entitles purchasers to residual income derived from fees paid by cardholders. Additionally, they claim huge returns and that investors “may receive $1,516.72 per portion per month after 18 months and $5,008.62 per month after 24 months,” the watchdog further explains.

Throughout the write-up, the state of Texas lists a number of details, but it ‎seems that the main issue that the authority has with Jerrard’s business ‎is that he falsely touts lucrative cashflow for his cryptocurrency projects with a 100% written money back guarantee.

Finally, Commissioner Iles notes that get-rich-quick schemes gain momentum, elaborating that several recent cases have involved fraudulent trading built around alleged new artificial intelligence or secret software.