Texas regulators crack Arkbit cryptocurrency mining pyramid scheme fraud

The Texas Securities Commission has issued a cease and desist order to Arkbit Capital, accusing it of engaging in fraudulent crypto cloud mining activities. According to the order, the Texas Securities Commission found that Arkbit Capital and its affiliated entities engaged in fraudulent activities, including the use of deceptive image and video processing technology to promote its investment plans. Arkbit Capital, Arkbit Capital Holdings, ABC Holdings LLC, and ABC Mining (collectively "Arkbit") falsely claimed to operate data centers located in Arkansas for cloud mining of various cryptocurrencies.
The company promised a 120-day daily 1.6-2% return on digital asset deposits between $50 and $49,999. The order also accused Arkbit Capital of using payment processor CoinPayments.Net to facilitate payments for its investment schemes, despite CoinPayments.Net policy restrictions for users from certain jurisdictions, including the United States.