In a report published by the Texas State Securities Board, the regulator is said to have issued 16 orders against individuals indulged in dubious cryptocurrency schemes in 2018.
According to the regulator’s Enforcement Report of 2018, Texan residents were lured by the tempting returns on their cryptocurrency investments promised by fraudsters.
The Texan SSB has stated in its report that it had successfully listed nearly 60 persons and groups that made millions of dollars from unsuspecting clients, who invested in these unregistered crypto assets.
Citing a statement from SSB’s report:
“In 2018, the State Securities Board investigated and assisted in the prosecution of 12 individuals, resulting in prison sentences totaling 244 years, community supervision of 38 years, and orders of restitution of $13.2 million.”
The report also points out how the local law enforcements and the Texas SSB have been able to work together on an increasing number of cases, which have resulted in the conspirators either being indicted or convicted for their crimes.
The lack of regulation clarity wherever digital assets are concerned has led to an increase in ICO’s and crypto assets scams, with the US regulators cracking down hard on fraudulent activities in the recent past.
USA’s top regulatory watchdog, the Securities and Exchange Commission (SEC), is also set to review a number of proposals in the coming weeks, all of which are set to undergo critical assessments, in order to rule out fraud or illegal activities on the whole.