Texas Securities Board Halts Crypto Scam

Texas Securities Board Halts Crypto Scam

Alexandra García
1 min read

Texas State Securities Board Shuts Down Fraudulent Crypto Cloud Mining Operation

The Texas State Securities Board recently took action against Arkbit Capital, a fraudulent crypto cloud mining operation. The company deceived investors by falsely claiming to have data centers in Arkansas and offering daily returns. However, it was revealed that Arkbit used manipulated media and stock footage to perpetrate the scheme, and its CEO was found to have never attended a cryptocurrency conference as claimed. This case underscores the increasing sophistication of cryptocurrency fraud and the importance of thorough due diligence before investing in any crypto venture.

Key Takeaways

  • The Texas State Securities Board shuts down Arkbit Capital, a fraudulent crypto cloud mining scheme.
  • Arkbit falsely claimed to operate data centers in Arkansas, promising daily returns to investors.
  • Financial Examiner Alexis Cantrell exposed Arkbit's use of restricted US-based payment platforms.
  • Sophisticated fraud methods employed by Arkbit, including the use of manipulated media and stock footage.
  • Warning from Joe Rotunda about the rise of advanced fraudsters in the crypto space, emphasizing the need for investor vigilance.


The shutdown of Arkbit Capital highlights the weaknesses in the oversight of cryptocurrency investments, leading to potential financial losses for misled investors. This case also points to the existence of a sophisticated international fraud network. Consequently, it emphasizes the necessity for tighter regulatory controls and investor education in the crypto industry. In the short term, investors may become more cautious, while in the long run, this could contribute to a more regulated and vigilant investment landscape in cryptocurrency markets.

Did You Know?

  • Crypto Cloud Mining: This process involves mining cryptocurrencies like Bitcoin using shared computing power from remote data centers, allowing investors to earn a share of the mined currency without needing to own mining hardware.
  • Ponzi Schemes in Cryptocurrency: These fraudulent schemes promise high returns with little risk, often using blockchain complexity to obscure their activities.
  • CoinPayments.net: This platform supports over 1,700 cryptocurrencies for online payments, but its use in the Arkbit Capital case highlights the risks associated with such platforms in the absence of proper regulatory oversight.

You May Also Like

This article is submitted by our user under the News Submission Rules and Guidelines. The cover photo is computer generated art for illustrative purposes only; not indicative of factual content. If you believe this article infringes upon copyright rights, please do not hesitate to report it by sending an email to us. Your vigilance and cooperation are invaluable in helping us maintain a respectful and legally compliant community.

Subscribe to our Newsletter

Get the latest in enterprise business and tech with exclusive peeks at our new offerings