Securities Commissioner orders stop to cryptocurrency fraud

Local News

Little Rock, Ark. (News Release) – Arkansas Securities Commissioner, Eric P. Munson, entered a Cease and Desist Order against Vekx Global LLC (Vekx). The Order directed Vekx to stop acting as an unregistered investment adviser and selling unregistered securities in Arkansas. The Order further directs Vekx to refrain from committing fraud and deceit in connection with the offer or sale of any securities in Arkansas.  

The Order found that Vekx illegally and fraudulently offered cryptocurrency mining investments on its website and promised guaranteed returns at high fixed profits. Vekx was incorporated as a limited liability company with the Arkansas Secretary of State’s office and offered securities and investment advice to Arkansans through its website. Vekx claimed to be doing business from an office in Little Rock but the investigation by department staff found that Vekx had never been a tenant in the office building.

According to the Order, Vekx successfully solicited at least one investor for over $1,500.00. That investor has not received the promised return though Vekx guaranteed that invested funds will be returned and made into profits by their experienced experts.

“We are seeing a rise in cryptocurrency-related enforcement cases across the country,” said Commissioner Eric Munson. “I encourage investors to research before investing. Promoters of fraudulent investments often go to great lengths to create the appearance of legitimacy. Investors should use due diligence to uncover and stay one step ahead of scams. Any time one is promised a guaranteed return on an investment, especially sounding too good to be true, it’s likely fraud.”

Investors are encouraged to contact the Arkansas Securities Department with questions about any investment opportunity or the persons offering it for sale before investing in the product. Contact 1-800-981-4429 to report suspected fraud and inappropriate securities business practices or to obtain consumer information. 

A copy of the Cease and Desist Order is available on the Arkansas Securities Department’s website at www.securities.arkansas.gov.

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