Texas securities cops just yanked the cord on what they say was a too-good-to-be-true crypto mining play, hitting TEXITcoin, MineTXC, Blockchain Mint, and founder Robert J. Gray with an emergency cease-and-desist order. Regulators say the group pushed slick “mining packages” that dangled steady daily returns and fat recruitment commissions, while telling investors next to nothing about company finances or who actually controlled their money. The state framed the offerings as unregistered securities sold in Texas and warned that investors were staring at “immediate and irreparable” harm.
State Order Names Companies And Founder
On Wednesday, the Texas State Securities Board issued Emergency Cease and Desist Order No. ENF-26-CDO-1893, naming TEXITcoin, MineTXC, Blockchain Mint, and Robert J. Gray, and ordering them to stop offering unregistered securities in Texas and to stop acting as unregistered securities dealers or agents. The order also bars the respondents from engaging in fraud and from making materially misleading statements, according to the Texas State Securities Board.
"I am grateful to the staff in our Enforcement Division. Their diligent, thorough and swift work will help prevent further investor harm," Deputy Securities Commissioner Cristi Ramón Ochoa said, warning investors to be wary of social-media pitches that promise passive crypto-mining returns, per FOX 7 Austin. Regulators say their investigation shows the promotion leaned far more on recruitment incentives than on verifiable mining performance.
How The 'Mining Packages' Worked
According to the order, the MineTXC website spotlighted three packages: a Single Plan for $995 that promised 100 megahash, a Triple Plan for $2,985 with 300 megahash, and a Builder Plan for $8,955 touting 900 megahash. Investors were told they would receive a share of daily TEXITcoin mining output tied to those plans. The same document says the site also claimed the operation had raised more than $147 million and paid about $65 million in commissions, while investors never received any physical mining hardware or control over equipment, per the Texas State Securities Board.
Recruitment And Red Flags
Regulators and local reporters say the respondents leaned on a multi-level marketing network of sales agents who used social media heavily to haul in new investors and funnel prospects to the MineTXC website. The Texas State Securities Board is urging Texans to check a firm’s registration status and to contact the agency’s enforcement division with any suspicions; investors can reach the enforcement team at [email protected] or 512-305-8392, per FOX 7 Austin.
The emergency order is the latest in a run of Texas crackdowns on crypto-linked investment pitches that regulators say promise the moon while skimping on disclosures. State officials have flagged similar offerings in recent years, according to reporting by Law360. For now, the order is designed to stop the alleged harm quickly while the agency weighs its next enforcement moves.
