Texas State Securities Board sums up 2018’s cryptocurrency scam crackdowns

“Blind faith, fraud, and millions of dollars lost,” the Texas State Securities Board (SSB) sums up 2018 in its yearly Enforcement Report. The state agency has revealed that the past year saw a total of 16 administrative orders issued against possible cryptocurrency scammers.

The SSB highlights one particular emergency proceeding connected to Bitconnect—a fake cryptocurrency trading program now described as a Ponzi scheme. “The emergency action effectively shut down the scam, as BitConnect almost immediately lost 99% of its market capitalization of $2.6 billion,” states the report.

As for the causes of the increasing frequency of cryptocurrency investment scams, SSB notes that the anonymity of the internet significantly aids scammers in attracting potential victims by “weaponizing social media to connect with investors in Texas.”