Texas regulators this week issued an emergency cease and desist order to My Crypto Mine operator Mark Steven Royer. In the order, Texas Securities Commissioner Travis J. Iles alleges that Royer’s company is “fraudulently offering investments in a cryptocurrency trading and mining program” that uses social media and “standalone websites” to target investors in Texas and other states.
The order alleges that Royer has failed to disclose to investors critical information about the mining and trading risks associated with the company’s cryptocurrency activities. It also claims that he has not informed any investors of his alleged involvement in a previous cryptocurrency project in which he supposedly offered unrealistic promises while selling a digital currency called bitqy.
The Texas State Securities Board website announced the order, noting:
According to the order, Royer is promising investors that they can earn guaranteed, no-risk returns of between 10% and 20% per week. In an effort to boost investor confidence, My Crypto Mine is claiming its trading is audited twice yearly.
Royer, however, is allegedly providing investors with no information about My Crypto Mine’s trading strategy or the background of its personnel.
Royer’s marketing is targeted to a wide range of potential investors. He claims the profits from My Crypto Mine investments have helped small investors save for retirement; allowed parents and grandparents to build up six-figure college funds; and wiped out credit card and tax debts.
Regulators are also alleging that Royer has been recruiting agents to sell the company’s investments, reportedly offering them tiered commission rates based on the size of their customers’ investments. The state alleges that Royer’s recruitment efforts do not include “verifying they are registered to sell securities in Texas, as state law requires.”
Royer and his company have been given 31 days to contest the cease and desist order. In an interview with the Dallas Morning News on Thursday, Royer denied the state’s claims and vowed to defend himself and his company.:
"It's pretty laughable to be honest. We're a tiny little investment club. There's multiple inaccuracies in their document that I'll let my attorney take care of. They don't even have our website domain right."