According to Odaily, Texas regulators have recently issued an emergency cease-and-desist order against two individuals, Darrell Porter and Eric Ture Muhammad, for allegedly promoting a fraudulent cryptocurrency investment scheme. The scheme is reportedly linked to Trage Technologies, which promised high returns through digital asset arbitrage trading but misled investors. Trage Technologies is accused of falsely claiming registration with the U.S. Securities and Exchange Commission (SEC) and employing illegal multi-level marketing strategies, posing significant risks to retail investors.

Texas officials highlighted that the company failed to restrict sales to qualified investors and did not verify their qualified investor status, thus not complying with Regulation D requirements. The accused parties have 31 days to contest the cease-and-desist order.