PANews reported on October 11 that according to Bitcoin.com, the Texas regulator recently issued an emergency cease and desist order to two individuals, Darrell Porter and Eric Ture Muhammad, who were suspected of promoting a fraudulent cryptocurrency investment program. The investment program is allegedly related to Trage Technologies, which promises high returns through digital asset arbitrage trading, but actually misleads investors. Trage Technologies is accused of falsely claiming to be registered with the U.S. Securities and Exchange Commission (SEC) and using illegal multi-level marketing strategies, posing significant risks to retail investors.

According to the allegations, the cryptocurrency arbitrage trading program launched by Trage Technologies, in which Porter and Muhammad participated, allegedly earned 3,600 USDT per month for a principal of 10,000 USDT, and accumulated 43,800 USDT in one year. However, the Commissioner's Office found that Trage Technologies not only concealed important information about its leadership, but also used an illegal multi-level marketing (MLM) system to recruit agents and falsely claimed to be eligible for protection under Section 506(c) of Regulation D.

Texas officials noted that the company did not limit sales to accredited investors or verify their accredited investor status, thus failing to comply with Regulation D requirements. The accused parties have 31 days to challenge the cease and desist order. Porter and Muhammad have previously promoted other companies involved in legal proceedings.