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Cryptocurrency scheme promising ‘guaranteed, no-risk returns’ targeted by Texas regulators | Business

Royer has 31 days to request a hearing before the order becomes final and non-appealable. Violating the cease-and-desist constitutes a third-degree felony punishable by a fine of up to $10,000 or a prison sentence of up to 10 years, according to the order signed Wednesday by Texas Securities Commissioner Travis Iles.

Royer allegedly marketed My Crypto Mine as a passive investment and told potential investors, who are required to put up a minimum of $5,000, their capital will “never lose its value,” according to the order.

Royer further claimed that My Crypto Mine has been helping small investors build nest eggs, create “six-figure” college funds, pay off credit card debts or extend retirement funds, the securities board said. He also claimed the service has been chosen by a “major national church” to be its recommended cryptocurrency investment for 6 million members.

Royer has advertised that the company’s trading is audited twice yearly, according to the agency, but has not identified who is performing the audits or released the audit results to investors.

The emergency order also alleges Royer failed to disclose his involvement in BitQyck, a Dallas-based company that sold a digital currency called bitqy.

According to the securities board, Royer was selling bitqy as early as May 2017 when it was priced at $0.02 and told potential investors that the currency’s value would rise to $3.00. As of Nov. 11, 2018, the currency had lost 99 percent of its value.

Royer denied any involvement with BitQyck or its founders. 

“These people who were involved with that have nothing to do with me,” he said. “Whoever put this information together for the board didn’t get their facts straight. … It’s just not accurate.”

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