Texas Securities Commissioner Travis J. Iles filed an Emergency Cease and Desist Order on Thursday against Darrell Porter and Eric Ture Muhammad for allegedly promoting illegal crypto investments.

The order claims they were involved in a cryptocurrency-related arbitrage trading scheme issued by Trage Technologies Ltd., which is accused of misleading investors. The announcement details:

The order accused Porter and Muhammad of illegally and fraudulently offering investments tied to digital asset arbitrage trading that purportedly pay lucrative returns – with a principal investment of 10,000 USDT purportedly earning 3,600 USDT per month or 43,800 USDT after one year.

The alleged scheme offered significant returns on digital asset investments, but the Commissioner’s office claims Trage Technologies concealed vital information about its leadership and used an illegal multilevel marketing (MLM) system to recruit agents. Trage Technologies allegedly falsely claimed it was registered with the U.S. Securities and Exchange Commission (SEC) and qualified for Regulation D, Rule 506(c) protection. “Bad actors are leveraging interest in cutting-edge technology to develop fraudulent schemes,” Iles stated, adding that these tactics pose a threat to retail investors by combining modern tech with traditional sales methods.

However, Texas officials allege that the company does not meet Regulation D requirements, as it neither limits sales to accredited investors nor verifies their accreditation status. TSSB Enforcement Director Joe Rotunda added:

Trage is accused of not only falsely claiming it is registered with the U.S. SEC but also of falsely claiming it qualifies for safe harbor treatment.

Porter and Muhammad have a history of promoting other companies, including GS Partners and Billionico Academy, both of which were involved in prior legal actions. The accused parties have 31 days to challenge the cease and desist order.

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