State & Local Government Policy, Business and Technology

Texas Regulators Grapple with Increasingly Creative Cryptocurrency Scams

Government Technology: The cryptocurrency investment craze is bringing out the creativity in fraudsters, Texas regulators say.

The Texas State Securities Board cracked down on two more crypto-related companies this week, accusing them of attempting to dupe Texas investors. One of the companies promoted its operations as being in “a secluded place in the mountains hiding incredible computing power” and configured in such a way “that the flow of the cold mountain river would cool” its computer servers.

Bitcoin Trading & Cloud Mining Limited, which goes by the name BTCrush and is based in London, used “stock footage available for sale on the internet” to create phony videos depicting the operations, according to the State Securities Board.

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