• The Alabama Securities Commission has shut down 97 fraudulent cryptocurrency trading websites

  • Alabama’s securities regulator has issued a cease and desist order against Acoin Trading and 96 other cryptocurrency websites. The cryptocurrency investment schemes advertise “excessive returns,” “fictitious account values,” and “undisclosed fees.”

    A US state regulator has ordered the closure of 97 cryptocurrency trading websites.

    The Alabama Securities Commission issued a cease and desist order against 97 cryptocurrency trading websites on Thursday. The announcement states:

    Sir Philip Zuka, the owner of Acoin Trading and 96 other fraudulent crypto trading platforms, was issued a cease and desist order by the Alabama Securities Commission (ASC).

    “The order was issued as a result of Zuka’s failure to register his investment products and as an investment adviser,” the regulator explained, adding:

    Zuka is in violation of Alabama securities laws for promising excessive returns, reporting fictitious account values, and charging an Alabama investor undisclosed fees.

    According to the regulator, an Alabama investor discovered Acoin Trading online and was intrigued by how the program could make investors eight times their initial investment in just one week.

    “As a result, the investor participated in a demo and invested approximately $10,000 in bitcoin, which was deposited into a wallet provided on the Acoin Trading website,” according to the ASC.

    However, when he attempted to withdraw his funds, Zuka demanded additional payment before any funds could be released. The investor quickly realized the investment was a scam and filed a complaint with the ASC, as well as ceased all communication with Zuka and his trading platform.

    The regulator, however, stated that the Alabama resident had lost his entire investment.

    The owner of Acoin Trading, according to the order, was a Namecheap Inc. user named Sir Philip Zuka, or Sirzuka. The specifics of the order:

    Namecheap Inc. was used by ‘Sirzuka’ to create 281 websites. 127 of the 281 websites are operational, with 96 of them operating in the same way as Acoin Trading. The IP addresses were assigned in Nigeria, Europe, or the United States.

    What's your reaction?