Missouri Watchdog Hits Unregistered Crypto Brokerage With Cease and Desist

The Missouri Secretary of State Securities Division has sent a cease-and-desist letter to an unregistered crypto firm.

Announced Wednesday, Mavixbtc Limited was ordered to halt operations after allegedly misleading investors. Mavixbtc faces civil penalties and investigation costs of over $30,000 for its fraudulent representation as a brokerage and investment company.

To garner customers, St. Louis-based Mavixbtc began offering investment services advertising returns of 55 percent “in as little as 6 days,” according to the secretary of state’s office.

The office also alleges:

“Mavixbtc falsely claims to be registered with the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation. The company also fraudulently uses the registration number of a registered investment adviser representative who has no knowledge of Mavixbtc.”

“The novelty and promise of quick profits by investing in cryptocurrencies can be enticing to investors,” Securities Commissioner David M. Minnick said.

“But there are significant, real risks associated with these non-traditional investments, and scam artists are hard at work trying to defraud investors. Always check with our office before you invest.”

The division offered Mavixbtc the opportunity to make a case for why restitution should not be imposed.

The North American Securities Administrators Association (NASAA) launched the second wave of “Operation Cryptosweep,” an initiative to crack down on crypto related scams. As of August, 35 enforcement decisions have been taken and nearly 100 more are pending.

Stop sign image via Shutterstock

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Source: Coindesk

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