Texas Regulators Bust Arkbit Crypto Mining MLM Fraud

The Texas State Securities Board has taken action against Arkbit Capital for its involvement in fraudulent activities related to crypto cloud mining. An official cease and desist order was issued, as investigations led by Financial Examiner Alexis Cantrell revealed that Arkbit Capital and its associated entities were engaging in deceptive practices. These fraudulent activities included manipulating images and videos to attract investors to their schemes.

Arkbit Capital, along with its affiliates Arkbit Capital Holdings, ABC Holdings LLC, and ABC Mining—collectively referred to as “Arkbit”—misled investors by claiming to run data centers based in Arkansas. These centers supposedly mined various cryptocurrencies. To lure in potential victims, the group promised daily returns ranging from 1.6% to 2.8% over a period of 120 days on digital asset deposits that started from as low as $50 and went up to $49,999.

A significant aspect of the order pointed out that Arkbit Capital used a payment processor, CoinPayments.Net, for their financial transactions. It was exposed that this payment processor has strict policies against users from specific jurisdictions, including the United States. This added another layer of deceit, as the Arkbit CoinPayments account was registered under the name Paras Khivesara, who is based in Hyderabad, India, rather than Arkansas as they had claimed.

Among the manipulated promotional materials used by Arkbit Capital was a fabricated video purportedly featuring their CEO and founder at a cryptocurrency conference in Austin, Texas. Upon investigation, the Texas State Securities Board found no records or evidence supporting the presence of either Delmar Estabrook or Arkbit Capital at the event.

Joe Rotunda, the Director of the Enforcement Division of the Texas State Securities Board, has advised the public to be cautious with investment opportunities promoted on social media. He emphasized the importance of thoroughly researching any investment before committing any money. This recommendation comes amidst a growing number of Ponzi scheme cases tied to cryptocurrency that have been identified across the United States.

In fact, the Arkbit Capital case is part of a larger trend. For instance, on March 15, the U.S. Securities and Exchange Commission (SEC) dismantled a $300 million Ponzi scheme that was operated under the guise of a crypto trading platform named CryptoFX. This fraudulent scheme targeted investors from the Latino community within the United States.

Just a few days later on March 18, a New York jury convicted two individuals who were promoting a fake crypto mining and trading operation known as IcomTech. This company had already collapsed by the time of their conviction. These instances highlight an increasing concern over fraudulent activities within the cryptocurrency space.

Most recently, on April 4, Irina Dilkinska, who once served as the head of legal and compliance for the massive OneCoin fraud scheme, was sentenced to four years in prison. She was found guilty of playing a significant role in laundering millions of dollars as part of the multibillion-dollar scam. These cases underscore the pervasive risks in the cryptocurrency investment environment and the need for regulatory vigilance.

Aron Wei

Aron Wei

34 thoughts on “Texas Regulators Bust Arkbit Crypto Mining MLM Fraud

  1. Fantastic job by Alexis Cantrell and the entire team! Fraudulent activities like these tarnish the crypto space.

  2. Arkbit Capital taken down, yet so many more like them out there. Be cautious with your investments, people!

  3. From fake CEOs to non-existent data centers, everything about Arkbit screams FRAUD! 🚨 It’s appalling how easily they fooled people. 😖

  4. Will we ever see the end of these crypto frauds? Another cautionary tale for everyone. Stay informed and stay safe!

  5. A big thank you to the Texas State Securities Board and Alexis Cantrell! You are making the crypto space safer for everyone. 🌟🙏

  6. Outstanding work by the Texas State Securities Board! Arkbit Capital is finally facing the consequences of their deceitful actions. 🙌

  7. Arkbit used a payment processor that doesn’t even allow U.S. users? 🙄 It’s clear they had shady intentions from the start. 😬

  8. It’s high time such fraudulent activities are nipped in the bud! Kudos to the Texas State Securities Board. 🔒💪

  9. Once again, social media is being used to deceive and defraud. Be vigilant and do thorough research before believing anything you see online!

  10. Applauding the Financial Examiner Alexis Cantrell. Her dedication is saving countless investors from potential financial disasters!

  11. Another day, another crypto scam unraveling. When will people learn? 😫 Do your research and stay away from these ‘too good to be true’ schemes. 🚫

  12. So proud of this action taken against Arkbit Capital! Let this be a lesson to all who engage in fraudulent activities.

  13. These stories are becoming all too common. Its shocking that people still fall for these scams! Can the authorities do more to stop this nonsense?!?

  14. Incredible news! Alexis Cantrell’s investigation was thorough and crucial. Protecting investors is so important in today’s crypto world.

  15. How many more scams do we have to hear about before stricter regulations are put in place? 🤔 The crypto world needs a serious cleanup. 🧹

  16. Kudos to the Texas State Securities Board for cracking down on these crypto fraudsters! 👏👏 Deceptive practices should never go unpunished!

  17. Such a disgrace to the crypto community. Fast money is a gamble, and scams like Arkbit are just waiting around the corner to catch you off guard.

  18. What a significant step! Protecting investors should always be the priority.

  19. Finally, some decisive action! Arkbit Capital’s downfall is a win for all honest crypto enthusiasts. 🎉💡

  20. Bravo, Texas State Securities Board! Safety and transparency should always be at the forefront of crypto investments. 🏅🚨

  21. Finally, some accountability in the crypto space! Bravo to the enforcement team for their diligence. 🎉👍

  22. This is exactly the kind of oversight the cryptocurrency market needs! Excellent job by the Texas State Securities Board.

  23. Props to Joe Rotunda and the entire enforcement division! This is exactly what we need to protect unsuspecting investors. 💥🤝

  24. Hats off to the Texas State Securities Board! Their work is helping to clean up the crypto industry.

  25. The extent of the deception is unbelievable. Fake videos, manipulated imagesyou name it. How can anyone ever trust crypto again?

  26. Great news! The investigation into Arkbit Capital reveals the importance of thorough research and skepticism in crypto investments.

  27. Arkbit Capital used fake conference videos and non-existent CEOs to scam people? This is next level fraud! Unacceptable.

  28. So grateful for the vigilant actions of the enforcement team. Arkbit Capital’s scheme was atrocious!

  29. A big win for transparency and investor safety! Let’s hope this sets a precedent for many more actions against fraudsters.

  30. Why are these con artists not getting harsher penalties? Arkbit and others like them are preying on innocent people!

  31. Excellent news! Lets keep this momentum going against all fraudulent crypto operations.

  32. This is why Im wary of crypto investments. Too many fraudsters and not enough safeguards for average investors.

  33. Excellent move by the Texas State Securities Board! This is a strong message to all who think they can get away with fraud. 🚨💥

  34. Are you kidding me? Another crypto scam? 🤦‍♂️ These fraudulent companies are ruining the crypto space for everyone! 😠

Leave a Reply