The Texas State Securities Board found that Arkbit Capital was taking investment from people via a restricted payment platform & was running a cloud mining investment scheme, which was a scam.
As per an investigation by the Texas State Securities Board, the crypto firm Arkbit Capital & its other affiliates e.g. Arkbit Capital Holdings, ABC Holdings LLC, and ABC Mining (collectively “Arkbit”) falsely claimed to operate US state Arkansas-based data centers for cloud mining multiple digital assets.
This crypto-mining firm has been in existence in the online world only & there is no physical existence. This company was taking crypto investment deposits between $50 and $49,999 for daily returns of 1.6-2.8% for 120 days.
To accept payments, this fake crypto mining firm used the crypto payment platform CoinPayments.Net, which is restricted in the US.
The main mastermind behind this whole Ponzi crypto scheme & fake cloud mining business is from India, Hyderabad. A person by the name of Paras Khivesara was found as the owner of the Arkbit CoinPayments account. However there may be chances that the main mastermind be from India, as identity theft is a very common thing in the current era of the digital world.
One of the fake videos made by Arkbit Capital showed their CEO and founder supposedly talking at a cryptocurrency conference in Austin, Texas. The video was fake & edited but still, they succeeded in catching multiple innocent crypto investors in their fake crypto mining business investment scheme.
The Texas State Securities Board has ordered Arkbit Capital to stop their fake crypto cloud mining activities.
Earlier in March of this year, the United States Securities and Exchange Commission (SEC) unearthed a $300 million Ponzi crypto scheme under the guise of a crypto trading platform called CryptoFX. This platform was targeting crypto investors from the Latino community in the U.S.
Just a few days later, the New York jury convicted two people who were promoting fake crypto mining and trading scheme IcomTech.
All these one-by-one incidents every month show that bad actors are involved in the crypto sector to a greater extent and here every crypto investor should educate himself first before going with any crypto investment project.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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