Texas regulators order Binance Assets to halt operations; company says it has no ties to the exchange

The Texas State Securities Board (TSSB) issued emergency orders to halt the activities of three unregistered cryptocurrency projects. One of them operated under the Binance cryptocurrency exchange brand, according to the пресс-релизе.

The platform Delta Crypt Limited, registered in the United Kingdom, is at issue. According to the TSSB, in April 2020 it drew the attention of the Philippine regulator for ‘illegal securities issuance’.

After a warning, the company deleted the site but continued to operate under other names: Binance Assets, BinanceAssets LTD and Bit Kind LTD. The platform currently offers investments in digital assets and promises returns of 30-40%.

The Texas regulator deemed the Delta Crypt offer fraudulent and misleading. The TSSB also accused the company of concealing the warning from Philippine authorities and the risks associated with cryptocurrencies.

The state took similar measures against the Digitaly Invest and FxSmart projects. The regulator noted that the companies hid important information, including the identities of the executives.

“Digitaly Invest distorted information about the location of its offices and illegally recruited sales agents to promote its securities,” the statement said.

This is not the first time the Texas regulator has taken action against dubious cryptocurrency companies. In 2017, the regulator obtained a court order to halt the activities of USI-Tech Limited, accusing it of illegally promoting Bitcoin investment products.

In 2018, the TSSB issued a ruling against the cryptocurrency project Bitconnect. Later, the regulator shut down an $18 million mining scam.

In November 2020, the TSSB issued three emergency orders to halt the activities of 14 cryptocurrency companies.

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