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

Dogecoin Price Mirroring This 2017 Pattern Suggests That A Rise To $4 Could Happen
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
SBF Is Sleeping Better, Playing Video Games — New York Times Sam Bankman-Fried Interview Dunked on for Going Soft on FTX Co-Founder
SBF Is Sleeping Better, Playing Video Games — New York Times Sam Bankman-Fried Interview Dunked on for Going Soft on FTX Co-Founder On Nov. 14, the New York Times (NYT) published
Binance Launches New Platform for VIP and Institutional Crypto Investors
Binance Launches New Platform for VIP and Institutional Crypto Investors Crypto exchange Binance has launched a new platform for VIP and institutional investors. The VIP program al
Joe Hall11 hours agoBitcoin builder climbs Africa’s tallest mountain to raise awarenessAdvocates for the Bitcoin Lightning Network and decentralized protocol Nostr funded Kweks’ Kilimanjaro climb.2912 Total views35 T
Bitflex Commences BETA Testing With Zero-Trading Fees
Bitflex Commences BETA Testing With Zero-Trading Fees press release PRESS RELEASE.Seychelles, June 20, 2022– Bitflex Inc. (the “Company,” “we” or
Chinese gov’t launches public blockchain infrastructure platform with Conflux Network
Zoltan Vardai11 hours agoChinese gov’t launches public blockchain infrastructure platform with Conflux NetworkThe blockchain initiative comes despite mainland China’s hostile attitude toward cryptocurrencies.2607 Tot
Megan Nyvold10 hours agoHow Bitcoin mining is a model for modern industrial loadsWe are moving from a model of fossil-fueled generation, meaning grid operators must find ways to modulate demand up and down, rather than j
XRP Open Interest Surges 41% As Speculation Grows – Over $1B Added In Just One Week
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin, Ethereum Technical Analysis: ETH Back Under $2,000 as Balenciaga Gains Lose Steam
Bitcoin, Ethereum Technical Analysis: ETH Back Under $2,000 as Balenciaga Gains Lose Steam Following strong gains to start the week, BTC once again fell under $30,000, as crypto pr
Derek Andersen2 hours agoGovernment objects to ‘unnecessary,’ ‘prejudicial’ SBF jury selection questionsThe U.S. attorney sees no reason for potential jurors to discuss effective altruism or ADHD, among other thi
Martin Young2 hours agoSam Altman’s OpenAI ouster sees rollercoaster Worldcoin priceSam Altman’s eye-scanning world ID project saw its token price go on a wild ride over the weekend after he was fired by OpenAI.1348
Ethereum Pain Is Far From Over: Why A Massive Drop To $1,400 Could Rock The Underperformer
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu