Fun

South African Firms Ordered to Cease Crypto Debit Card Scheme in 2 US States

News Feed - 2020-08-18 03:08:11

South African Firms Ordered to Cease Crypto Debit Card Scheme in 2 US States


Two U.S. states have issued emergency cease and desist orders to South African firms and a South African national promoting a cryptocurrency debit card scheme. The companies claim that the card is like a traditional Mastercard but the states say the scheme is fraudulent.South African Firms Sanctioned by 2 US States


The Texas State Securities Board (TSSB) and the Alabama Securities Commission (ASC) issued emergency cease and desist orders simultaneously to South African firms over a cryptocurrency credit card scheme to defraud investors in their states. The orders name Liquid Gold Trust, Liquidity Card Solution LLC, Liquidity Global Card Solution and Liquid Gold Trust CEO Lance Angus Jerrard.


According to the order, the defendants promote the Liquidity Card, which purportedly works with stablecoins: USD coin (USDC), Trueusd coin (TUSD), and PAX coin (PAX). However, the accused claim that “it is a Mastercard that functions like a traditional debit card.” They represent that “cardholders can use the Liquidity Card to receive and spend profits as stablecoins, avoiding taxes that would otherwise be recognized when converting cryptocurrencies to dollars or other fiat currency,” the Texas Securities Board explains, emphasizing:The system only works, however, if the Liquidity companies can recruit new cardholders. They need money to recruit these cardholders.


“It supposedly launches in October 2020, with the goal of recruiting 8 million cardholders in 36 months,” the order further explains. “As part of the alleged scheme to fund the marketing campaign, the Liquidity companies are selling 8,400 ‘portions’ in their global project partnership. Each portion costs $1,150 and entitles purchasers to residual income derived from fees paid by cardholders.”


The order adds that the defendants claim that investors may receive $1,516.72 per portion per month after 18 months and $5,008.62 per month after 24 months. Furthermore, the profits are purportedly guaranteed. According to the order:The Liquidity companies are even offering investors a 100% written money back guarantee.




However, the order shows that the companies are not providing information that shows they can actually repay investors that demand a return of funds.


“It’s also fraud,” the Texas Securities Board’s announcement reads. “The Liquidity companies are accused of concealing important information about their relationships, their contracts and their compensation.” In addition, the Board says, “They are also allegedly using stock photographs to depict their offices.” None of the accused is also registered with the two states to sell securities and their investments are not registered or permitted in the states. The parties have 30 days to challenge the entry of the order.


What do you think about this crypto card scheme? Let us know in the comments section below.US Regulator Charges Tech Firm, CEO in $5 Million ICO Fraud CaseREGULATION | 2 days agoRussia Developing AI System to Monitor Cryptocurrency Transactions — Prototype Now in UseREGULATION | 6 days agoTags in this storyCredit card Fraud, Crypto Cards, crypto mastercard, cryptocurrency cards, debit cards, fake crypto cards, south african debit cards, south african firm, Texas


Image Credits: Shutterstock, Pixabay, Wiki CommonsPurchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimerShow comments

News Feed

Kevin O’Leary: ‘My Crypto Exposure Is Greater Than Gold for the First Time Ever’
Kevin O"Leary: "My Crypto Exposure Is Greater Than Gold for the First Time Ever" Shark Tank star Kevin O’Leary, aka Mr. Wonderful, has revealed that he has more crypto expos
DeFi is ‘waking up again’ — Active loans return to 2022 levels
Martin Young3 hours agoDeFi is ‘waking up again’ — Active loans return to 2022 levelsDeFi lending and total value locked are recovering, but many related tokens are still at bear market lows.875 Total views2 Total
PocketNet Changes Name to Bastyon and Releases Private Messaging App With PKOIN Chat Payments
PocketNet Changes Name to Bastyon and Releases Private Messaging App With PKOIN Chat Payments sponsored Bastyon’s messaging app would include end-to-end encryption, no link t
Visa Terminates Agreements With Bankrupt Crypto Exchange FTX
Visa Terminates Agreements With Bankrupt Crypto Exchange FTX Visa has reportedly terminated its global agreements with collapsed cryptocurrency exchange FTX and its U.S. arm, FTX U
Nevada Man Pleads Guilty in $722 Million Fraudulent Cryptocurrency Scheme
Nevada Man Pleads Guilty in $722 Million Fraudulent Cryptocurrency Scheme A Nevada man has admitted his role in laundering funds solicited for the Bitclub Network, a $722 million f
ETH Compatible BCH Sidechain Smartbch Successfully Launches Three Nodes
ETH Compatible BCH Sidechain Smartbch Successfully Launches Three Nodes The day before the fourth Bitcoin Cash anniversary, the Smart Bitcoin Cash team (Smartbch
William Suberg9 hours agoBitcoin speculators are underwater on 88% of their BTC bags: ResearchA tale of two types of Bitcoin investors emerges as BTC price action separates “sensitive” speculators from seasoned hodle
Biggest Movers: ETC Nears 10-Week High, as TRX Extends Recent Gains
Biggest Movers: ETC Nears 10-Week High, as TRX Extends Recent Gains Ethereum classic was approaching a ten-week high on Wednesday, as prices rose by over 14% in today’s sess
Tristan Greene3 hours agoToken hoarders defeat the purpose of most DAOs: StudyThe study also showed that decentralized organizations work best when they’re built around a tight-knit group of focused participants.993 To
Brayden Lindrea6 hours agoChatGPT-coded smart contracts may be flawed, could ‘fail miserably’ when attacked: CertiKCertiK’s security chief thinks inexperienced programmers using AI tools such as ChatGPT to write sm
Bitgo to Offer Regulated Crypto Custody in Switzerland and Germany
Bitgo to Offer Regulated Crypto Custody in Switzerland and Germany European crypto exchanges, as well as other companies with significant crypto holdings they need to protect, no
Fidelity: 74% of Institutional Investors Surveyed Plan to Invest in Digital Assets
Fidelity: 74% of Institutional Investors Surveyed Plan to Invest in Digital Assets A new study by Fidelity Digital Assets, a subsidiary of financial giant Fidelity Investments, sho