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The Texas and Alabama Securities Regulators have teamed up and issued cease & desist orders against three South African companies. The order targets CEO Lance Angus Jerrard and his three companies, Liquidity Gold Trust, Liquidity Gold Solution LLC and Liquidity Global Card Solution (PTY) LTD.

The Texas State Securities Board (TSSB) and the Alabama Securities Commission (ASC) issued emergency cease and desist orders simultaneously to the three South African digital currency companies and their CEO on 14 August 2020. The firms are accused of promoting a fraudulent cryptocurrency debit card scheme  to defraud investors.

According to the order issued by the TSSB, the respondents are promoting their cryptocurrency debit card, “Liquidity Card”, as a prepaid mastercard. The Liquidity Card  purportedly works with stablecoins including, USD coin (USDC), TrueUSD coin (TUSD), and PAX coin (PAX). They describe the Liquidity Card as a Mastercard that functions like a traditional debit card.

The order also outlines the unrealistic benefits promised by the companies.They claim potential returns per portion could reach $1,516,72 per month after the 18th month and $5,008,62 per month after reaching 24 months.

The government agencies also accused the respondents of publishing photographs of office buildings that they claim are their own. As discovered by authorities, however, these are stock photographs, easily available for purchase online.

Feature image by Free-Photos from Pixabay 

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