Texas Bans Fraudulent Crypto Miner ArcBit Capital

Crypto and AI Demands Spike US Methane Emissions to 6 Million Tons



The Texas State Securities Board quickly intervened to shut down ArcBit Capital, which it accused investors of misleading investors with false promises and exposed in the media as fraudulent crypto cloud mining.

Arcbit falsely claims to operate data centers for crypto cloud mining in Arkansas, promising investors daily returns.

Deceptive practices are exposed

Financial investigator Alexis Cantrell discovered Arcbit's fraudulent practices. The company used CoinPayments.net to facilitate transactions despite the platform's ban on users from the US. These accounts are linked to Paras Kivesara in Hyderabad, India.

Archibit has published manipulated videos and images on social media to attract investors. A video purportedly shows Arcbit's CEO speaking at a cryptocurrency conference in Austin, Texas. However, the Texas State Securities Board found no evidence of his presence at the event.

itrust

Read more: How to identify a scam crypto project

According to the investigation, Arcbit used stock footage from a server factory to show footage of what was believed to be an Arkansas data center, and confirmed that Arcbit's main office video was leased office space in Los Angeles. Joe Rotunda, Director of the Enforcement Division, highlighted the importance of investor vigilance.

“Fraudsters are evolving, and their methods are becoming more sophisticated. Investors should exercise healthy skepticism when unknown entities present lucrative investment opportunities, Rotunda said.

The Texas State Securities Board has a history of dealing with fraudulent cryptocurrency schemes. In the year In 2018, it issued an emergency cease-and-desist order for unregistered cryptocurrency mining investments by several Utah-based individuals and companies. The board urged the public to thoroughly investigate any investment opportunity, especially those advertised on social media.

Read more: 15 most common crypto scams to look out for

The Arcbit case is part of a growing trend of cryptocurrency Ponzi schemes in the US. In the year In March 2024, the SEC uncovered a $300 million Ponzi scheme under the guise of CryptoFX targeting Latino investors. Not long ago, a New York jury indicted two individuals who promoted the fake crypto mining and trading scheme IcomTech. Recently, Irina Dilkinska, the former head of legal and compliance for the OneCoin fraud scheme, was sentenced to four years for defrauding millions of dollars.

The action against Arcbit Capital highlights the ongoing threat posed by fraudulent cryptocurrency schemes. This case serves as a great reminder for investors to be cautious and do thorough research before making any investment, especially those that promise high returns with minimal risk.

Disclaimer

Adhering to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This newsletter aims to provide accurate and up-to-date information. However, readers are advised to independently verify facts and consult with experts before making any decisions based on this content. Please note that our terms and conditions, privacy policies and disclaimers have been updated.

Leave a Reply

Pin It on Pinterest