Texas Orders Crypto Mining Firm to Give Back Investors’ Money
Crypto mining form AWS Mining was ordered by The Texas Securities Commissioner to give back the money they made on mining contracts to Texan investors.
The securities regulators of the state of Texas started a massive crackdown campaign on illegitimate cryptocurrency businesses which approached investors from Texas.
According to reports made by the Finance Feed, AWS Mining or MyCoinDeal is a company based in Australian that expanded its operations to Texas, looking to attract the new user base with ‘guaranteed returns of 200 percent’.
MyCoinDeal is AWS Mining’s crypto wallet service for digital asset investments.
AWS Mining managed to get money from 19 investors in the state of Texas, with the company agreeing to the Commissioner’s order to pay back the 19 users their investment minus any profits they made.
The regulator took immediate action against all AWS-owned companies back in November 2018. At the time of the investigation, the authorities found out that AWS companies illegally enlisted sales agents by using LinkedIn, Facebook, and other online media channels.
AWS Mining offered mining contracts which claimed that the mining took place in farms set in China, Russia, and Paraguay, and the company also guaranteed absurd returns of 200 percent on the purchase price.
AWS Mining also denied promising such guarantee on returns. The company stated that investors would have to face the risks of crypto volatility, system or technical failures, and price fluctuations for the electricity used for the miners and cooling hardware.
From the intervention it was determined that AWS Mining used a multilevel marketing network of sales agents in order to sell their mining power contracts, paying the sales agents with six different types of bonuses and commissions.
The Texas Securities Board is known for its anti-crypto stance, being among the few states that have scoured their entire jurisdiction to find any illicit crypto-related businesses.
Featured Image: awsmining.com