Amidst scandals and crimes across the cryptocurrency world, Texas state security board has taken it upon itself to rid the state of any crooked traders. Any company that it mildly suspects is dealing with fake coins is getting handed a cease and desist order. The latest company that received the order was DavorCoin.
The Texas state security board has ordered DavorCoin to stop selling their unregistered securities in Texas and marketing them with statements that are materially misleading and likely to deceive the public.
At the moment the DavorCoin website states, “DavorCoin is a new cryptocurrency which aims to become the best alternative to current popular coins such as Bitcoin and Ethereum. Once you own DavorCoins, they behave like physical gold coins: they possess value and can be traded like stocks in popular exchanges. In the future, you’ll be able to use them to purchase goods and services.”
The site further states that, “DavorCoin has been created by bankers and traders from major financial institutions (based in London, Paris and other EU cities). We realize the financial transactions in the world are going to be revolutionized by cryptocurrencies and blockchain technology. Based on this analysis, we’ve built a tech and financial team to create a blockchain platform to make worldwide financial transactions faster, cheaper and more reliable.”
What drew the attention of the security board was the fact that the website lacks any contact information. There is no address and no telephone number. The security board was quick to state, “DoverCoin is concealing the location of its main place of business, the identities of its principal executives and its financial information, in part by claiming to investors that it can’t “officialize its domiciliation” because of tax and regulatory risks.”
The security board finds these crooked companies and hands out their cease and desist orders using a proxy. They have also stated that they have other ways of going about this business. So far they have put a stop to over a dozen crooked companies.