The Texas State Securities Board have been cracking down when it comes to scam crypto companies operating in the state of Texas. In it’s most recent investigation after several complaints from cautious investors, the board has found the cryptocurrency mining and lending platform LeadInvest to be operating fraudulently.
The Texas Securities Commissioner administered a cease and desist order to LeadInvest after investigation showed the company’s website used stock images to represent their team. LeadInvest’s mining investment platform was also to found to have illegally solicited investors.
Similar to other investing and lending programs that have been outted as scams, LeadInvest offered high returns for investors in their Mining Program. Investors were told they would be able to invest in different miner plans that would yield high returns, with out the need to purchase any hardware themselves.
LeadInvest also claimed the McAllison Law Firm was who handled legal issues regarding international law, securities regulation, and government compliance. The LeadInvest website displayed photos of members of McAllison Law Firm, which in reality were photos of prominent members of a California law firm completely not affiliated with McAllison Law or LeadInvest. LeadInvest either did literally no research in who’s photos they were stealing or were just extremely bold as the false members of the McAllison Law Firm displayed photos of Supreme Court Justice Ruth Bader Ginsburg and former Solicitors General Theodore Olson, Paul Clement and Seth Waxman.
The LeadInvest company may request a hearing within 30 days or receiving the order with the Securities Commissioner. LeadInvest are to halt all operations in Texas and violating the order would be considered a criminal offense punishable by a fine of up to $5,000, and/or imprisonment for up to 2 years. It is unclear how the Texas Securities Board will prosecute the LeadInvest founders if need be as all their information was falsified on their website. The cease and desist is addressed to LeadInvest, Leadinvest.net, which is believed to have ties to Panama.
There has not been a public response from the LeadInvest team, most likely because they are stock images and not real people. The company’s official website leadinvest.net has gone down today and redirects to bitcoinvest.de, which is unclear of its affiliation with LeadInvest. It would be safe to assume the LeadInvest platform is no longer in operation.