Texas Issues Emergency Cease-and-Desist Order Against Two Individuals Allegedly Promoting Fraudulent Crypto Investment Schemes Related to Trage Technologies

On October 11, Bitcoin.com reported that regulators in the U.S. state of Texas recently issued an emergency cease-and-desist order against two individuals, Darrell Porter and Eric Ture Muhammad, who allegedly promoted a fraudulent cryptocurrency investment scheme. The investment scheme, purportedly associated with Trage Technologies, promised to provide high returns through arbitrage trading of digital assets, but in fact misled investors.Trage Technologies is accused of falsely claiming to be registered with the U.S. Securities and Exchange Commission (SEC) and using illegal multi-level marketing tactics that posed a significant risk to retail investors.

According to the allegations, Porter and Muhammad participated in a cryptocurrency arbitrage trading program offered by Trage Technologies that purportedly provided a monthly return of 3,600 USDT on a principal investment of 10,000 USDT and a cumulative return of 43,800 USDT after one year. However, the Commissioner's Office found that Trage Technologies not only withheld material information about its leadership, but also used an illegal multi-level marketing (MLM) system to recruit agents and falsely claimed to qualify for the protections of Regulation D Section 506(c).