Ponzi

<a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/">Texas</a> regulators have shut down Arkbit Capital for fraudulent crypto mining activities. The Texas State Securities Board issued a cease and desist order against Arkbit for engaging in deceptive practices. They falsely claimed to operate <a href="https://ultramining.com/news/en/crypto-miners-shift-gears-ai-is-the-new-gold-rush/">data centers</a> in Arkansas and promised daily returns of 1.6-2.8% on investments, according to <a href="https://cointelegraph.com/news/texas-busts-arkbit-crypto-mining-mlm-fraud">Cointelegraph</a>. 
The <a href="https://ultramining.com/news/en/large-scale-cryptocurrency-mining-farm-uncovered-in-dagestans-kizilyurtovsky-district/">investigation</a> revealed that Arkbit used manipulated videos and images to promote their schemes. They also used CoinPayments.Net for transactions, which violates its policies. The account holder was found in Hyderabad, India, not Arkansas. The Board discovered a video of Arkbit's supposed CEO speaking at a conference, which turned out to be fake.&nbsp; 
The Texas State Securities Board advises the public to research investments thoroughly and be cautious of social media investment opportunities. This case is one of several Ponzi schemes in the crypto sector. Recently, the <a href="https://ultramining.com/news/en/bitcoin-mining-reshaping-landscape-amid-global-interest-surge/">SEC</a> uncovered a $300 million Ponzi scheme by CryptoFX and convicted promoters of the IcomTech scheme. Irina Dilkinska, linked to the OneCoin fraud, received a four-year sentence for laundering millions.&nbsp;

Arkbit Crypto Mining MLM Fraud Busted by Texas Regulators

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