Arkbit Capital, Arkbit Capital Holdings, ABC Holdings, and ABC Mining have received an urgent cease and desist order for securities fraud from the state of Texas.
- Arkbit Capital surfaced as a Boris CEO run MLM cryptocurrency Ponzi setup in late 2022
- Arkbit Capital Holdings operates as a facade organization linked to Arkbit Capital
- ABC Holdings represents the resurgence of Arkbit as a Ponzi scheme
- ABC Mining is a branch of ABC Holdings
People implicated in the securities fraud edict from the Texas State Securities Board on May 28th include:
- Paras Khivesara, an Indian citizen from Telangana who established and managed a CoinPayments account used for the laundering of Arkbit funds
- Thomas Brewer, portrayed as Arkbit’s Boris CEO by American performer Mike Wolfe
- Delmar Estabrook, enlisted as the follow-up Boris CEO to Brewer
- Nicolai C. Schou, an actor affiliated with Arkbit personnel
- Melita Novosel, an actor also associated with Arkbit staff
- Libby Talbot, another actor part of the Arkbit team
- Edwin O’Connor, an actor featured in the Arkbit crew
The TSSB branded the Arkbit scams as “deceptive MLM ventures” and discovered these schemes
are promoting investment options allegedly leading to daily earnings and granting investors, sometimes called “shareholders,” a chance to profit from the workings of cryptocurrency mining operations.
The TSSB found that Arkbit was using actors with falsified credentials;
The implicated individuals claim that Brewer is a “Certified Professional Accountant” with a CPA certification in Arkansas.
However, Brewer has never been licensed as a CPA by the Arkansas State Board of Public Accountancy at any time relevant to these events.
It is also claimed that Schou obtained a bachelor’s degree in electrical engineering from the University of Texas.
In reality, Schou never received such a degree or any other from the University of Texas.
They assert that Talbot is the General Counsel Adviser for Arkbit Capital Holdings.
But in truth, Talbot has not held a license to practice law in Arkansas at any point pertinent to this situation.
…stock imagery used misleadingly;
The parties claim Arkbit organized the Green-Crypto Summit 2023 and display a video allegedly showing Estabrook, Novosel, and other supposed Arkbit employees at the event.
Moreover, they describe the Green Crypto Summit 2023 as a gathering of experts and influencers, branding it a “significant stride in promoting sustainability within the blockchain realm.”
In reality, the footage actually represents the 2023 Crypto Energy Summit 2.0, an event held in Cannonsburg, Pennsylvania, in May 2023.
The video has been altered to misleadingly indicate that Arkbit was the organizer.
Furthermore, they broadcast videos claiming to show Estabrook participating in an “exclusive interview” at Consensus 2022 by CoinDesk in Austin, Texas.
Contrary to these claims, neither he nor other Arkbit representatives were speakers or attendees at the conference.
…and misappropriated promotion from different entities;
Marketing representatives are utilizing altered content to advertise Arkbit and its offerings, such as:
A) One agent displays pictures of a City Council member at a discussion on transportation initiatives.
These photos have been doctored to give the false impression that the Council member is associated with Arkbit and is endorsing the Standard Plans.
B) Images from a women’s empowerment networking event led by a business coach have been manipulated to insert Arkbit’s logo and convey a false partnership with the event.
C) An agent under the pseudonym “Zain Caius” is promoting Arkbit investment opportunities on social media. His ads feature photographs that are purportedly of him.
Nonetheless, these photographs are identical to those on a web magazine portraying an editor who is not named Zain Caius.
The TSSB ultimately determined that Arkbit, along with the individuals steering it, are engaging in securities fraud.
The investment vehicles like Arkbit’s Standard and Comprehensive ROI Investment Plans are classified as securities under Section 4001.068 of the Securities Act.
The individuals have not been legally recorded as dealers or agents with the Securities Commissioner at any time significantly connected to the case.
They are breaching Section 4004.051 of the Securities Act by marketing securities in Texas without proper registration as mandated by Section 4004.051 of the act.
They are perpetrating fraud in relation to the solicitation for security sales.
Accordingly, on May 28th, the TSSB commanded the Arkbit entities and affiliate personalities to “immediately CEASE AND DESIST” from perpetrating securities fraud in Texas.
Ignoring these securities regulations in Texas may result in Arkbit and the associated persons facing fines of up to $10,000 and/or incarceration ranging from two to ten years.
Beyond Texas, the state of Arkansas has also disseminated a warning about Arkbit for securities fraud in the previous November.