By Nina Kikava - News - 2 months ago

Texas Regulator Issues Cease and Desist Order to Cloud Mining Company

According to official notice that was filed on November 6, The Texas State Securities Board has issued an emergency cease and desist order to an Australian cloud mining company AWS Mining PTY LTD due to selling unregistered securities.

As the document states, CTO Josiah Kostek and various agents of AWS Mining have disobeyed Texas Securities Act. They lured the citizens of the state in buying AWS’ unregistered cloud mining power contracts and customers were promised 200% passive return on every investment. Depending on the website of the company, it also offers investors to join a multi-level marketing matrix for only 20$. After joining the marketing matrix they will have the possibility to earn commissions by operating as sales agents.

The company required investors to secure their digital currency wallet, that was provided by MyCoinDeal, in order to participate in AWS crypto mining program. Investors had to pay fees for the creation of their wallets.

The company failed to disclose the information, that they are the name holder of MyCoinDeal. The firm also held back the information about their methodology for storing cryptocurrencies, and of course its means of accounting and also implementing protocols for customer protection from a lot of attacks.

Now, the company has only 31 days to request a hearing with the Securities Commissioner. If not, the order that was issued will be final and it will be non-appealable.

This is not the first time when Texas State Securities Board filed an emergency cease and desist orders to companies. All of the previous companies, that Texas Securities Board issued a cease and desist order for, were immediately suspended from offering securities in Texas.