articleStartImage

Texas is determined to weed out unsavory crypto players, and is serving up cease-and-desist orders left and right on any company it thinks has set up shop to swindle fake coins.

The latest action came Friday when the Texas State Securities Board served an emergency cease-and-desist order against a company called DavorCoin, according to MyStatesman newspaper.

Let’s discuss.

Materially misleading

MyStatesman reports that the securities board ordered DavorCoin to stop selling unregistered securities in Texas and to stop marketing them with statements that are “materially misleading or otherwise likely to deceive the public.”

On its website, DavorCoin boasts being a new cryptocurrency that aims to become the best alternative to current popular coins such as Bitcoin and Ethereum.

It states that holders of its coins can make money through a lending program, coin staking, trading, and an affiliate program.

Here’s an excerpt:

DavorCoin has been created by bankers and traders from major financial institutions (based in London, Paris and other EU cities). We realize the financial transactions in the world are going to be revolutionized by cryptocurrencies and blockchain technology. Based on this analysis, we've built a tech and financial team to create a blockchain platform to make worldwide financial transactions faster, cheaper and more reliable.

Where’s the contact info?

Two things that the site lacks are an address and a phone number, and the lack of this contact information drew the ire of the Texas Securities Board.

According to MyStatesman, the securities board found that DavorCoin “is concealing the location of its main place of business, the identities of its principal executives and its financial information, in part by claiming to investors that it can’t “officialize its domiciliation” because of tax and regulatory risks.”

In order to serve the order, the securities board had to go through Domains by Proxy, which is an Arizona company that offers Internet domain privacy services enabling domain owners to keep their information secret, according to the news item.

Joe Rotunda, director of enforcement for the securities board, told the newspaper “there are other ways we’re going to get (the order) to them” as well.

BitConnect connection

Rotunda also told the newspaper that the agency thinks the company is trying to fill the gap left by BitConnect. We told you last month about BitConnect, the most prominent and reviled cryptocurrency earnings scheme, being banned from doing business in the state.

Others that have banned from doing business in Texa include USI-Tech and R2B Coin.