The US Securities Regulatory Authority, Texas Securities Board (TSSB), has uncovered another series of alleged cryptocurrency frauds.
On September 3, Texas Securities Commissioner Travis J. Eles signed an emergency stop and ceasefire order against two alleged cryptocurrency fraud schemes known as Forex Birds and PEK Universe.
In the published order, the alleged operators of the schemes are Kumar Babu Bundisi and Darwin Eric Balusik. According to TSSB, Balusek is also known by the nickname “Bitcoin Dad”.
The agency said that the defendants who work abroad are accused of false offers of securities related to foreign currency (Forex) and cryptocurrency. Forex Birds promises investors up to 11% return on deposits of up to $ 1 million, according to TSSB. Forex Birds has also been accused of misleading investors by claiming registration with a number of governments in Europe and Australia.
Pek Universe, the alleged promoter of cryptocurrency programs, promised to generate daily returns for investors – up to almost 2% per day for 30 days. The regulator said that both Forex Birds and Pek Universe are not registered to trade Texas securities.
According to the official ruling, the defendants will receive fines of $ 10,000, two to ten years in prison or both. The accused must request a hearing with the organizer by 31 September. Forex Birds and Pek Universe are the same at the time of this post.
The Texas Securities Board is one of the most active regulators in the United States regarding the crypto industry. The agency is known as the first securities regulator in the United States to impose enforcement measures on a cryptocurrency-related company. In July 2020, he shut down TSSB Mirror Trading International, a multi-tier cryptocurrency fraud scheme operating in South Africa.