DavorCoin Cryptocurrency Platform Hit With Texas Cease and Desist Order

Texas Securities Commissioner Travis J. Iles on Feb. 2 entered an Emergency Cease and Desist Order against DavorCoin, an entity offering investments in a crytpcurrency lending program in Texas.

The emergency order found that DavorCoin is telling investors they can earn lucrative profits by investing in a lending program based on a new cryptocurrency known as davorcoin. Investors allegedly purchase davorcoin and then lend it to DavorCoin.

According to the order, an investor lending $30,000 in davorcoin may earn $15,390 in the first month of the program and receive $107,217 after 120 days.

DavorCoin, however, is not telling investors how it will generate such extraordinary profits. DavorCoin also is not disclosing the identity of its principals or its place of business, claiming instead that “due to tax and regulatory risks,” it “cannot officialize its domiciliation.”

DavorCoin appeared to increase the marketing of its lending program after the closure of another cryptocurrency lending platform, BitConnect.

Commissioner Iles on Jan. 4 entered an emergency action to stop BitConnect’s illegal and fraudulent offers of a different lending scheme. After BitConnect closed its platform, DavorCoin appear to step up its marketing.

According to the State Securities Board's Enforcement Division, DavorCoin responded to BitConnect’s closure by announcing “[t]his does not change anything for us,” and that DavorCoin is now “the number one lending platform in the world!!”

The Enforcement Division also found that DavorCoin is an unregistered firm and it is selling unregistered securities through affiliates.

DavorCoin has 31 days to challenge the order before the State Office of Administrative Hearings.

[accordion] [item title="Author and Credits"] Press Release by the Texas State Securities Board
Original Release Title: "DavorCoin Latest Cryptocurrency Platform Hit With Order"
Image Credits: Banner Image by dinbits.com staff

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