Texas Regulators Ban Kala Coin Companies Involved In Criminal Activities
After companies involved in Kala’s network were issued an immediate cease and desist order, four companies were revealed to be part of many illicit operations within Texan borders with part of the criminal activities conducted involving advanced mining rigs for sale.
After the regulatory board issued its emergency order, reports revealed that many involved companies in the network were offering citizens mining rigs and points on various blockchain platforms as part of their illegal activities and false investment marketing.
All the Kala-associated companies have been traced back to Darren Olayan, the digital coin’s owner. The emergency order issued targeted four unregistered companies offering their products to locals. As the regulators stated, their actions are based on a desire to stop connected companies from offering misleading investment services and products such as the company’s mining rig.
One involved company, Mintage Mining, promised its customers a yearly reward ranging up to 250 percent after buying one of their rigs. Wyatt McCullough who operates the company also directly responds to Olayan as official reports stated and is a self-proclaimed distinguished investor.
More False Promises
Symatri, another of the four involved companies, released a custom mining device designed for Kala’s transition from Ethereum’s platform to Bitcoin. The company also claimed that early purchases of the new mining rig would grant buyers special access to mining Kala coins on the Bitcoin platform as part of the company’s hard fork.
As a project launched last year, the company managed to raise almost $10 million through its ICO. Its initial guide states that members can earn Kala points to use on their market and acquire access to a massive number of services and products including bonuses and discounts on various goods from travel to gift cards.