The Texas State Securities Board issued an emergency cease and desist order against 9xProfits on November 14, targeting the company and six individuals, including founder Alastair Prescott. The action alleges the crypto investment scheme offers unregistered securities and operates with fictional identities, posing an immediate threat to Texas investors.
The order names Alastair Prescott as the company's founder. Other individual respondents include Esme Ravenscroft, identified as Chief Technology Officer, Hamza Karim, Chief Account and Financial Manager, and Joshua Gleeson, Chief Trading and Speculation Expert. Shirley Atwood, Chief Marketing and Sales Director, and Lucas Morris also appear on the list. These individuals are accused of promoting an investment program that claims high returns from an AI trading bot, a common characteristic of cryptocurrency Ponzi schemes.
The TSSB's investigation found that 9xProfits offered investment packages promising returns up to 300% over 200 days. These packages constitute unregistered securities under the Texas Securities Act. None of the named respondents have ever registered with the Securities Commissioner as dealers or agents, a mandatory requirement for selling investments in the state. The investment packages themselves were never registered by qualification, notification, or coordination, and no permit exists for their sale in Texas. This lack of registration directly violates state securities laws.
The regulator specifically identified several promoters pushing 9xProfits. Nathan Paul Weissenborn, who uses the social media handle "9XProfits AI Nathan Team," appears to be operating under a fictional identity. Another promoter, Andrew Harrison, operates from Poland. Coach Honey Leon received a mention in the order. Brian K. Letterman, who runs the "Crypto Muscle Network" and "Crypto Muscle OG" channels, was also named for his role in promoting the scheme. The use of pseudonyms and online personas often makes it difficult for regulators and law enforcement to track and prosecute those behind such operations.
The emergency order requires all respondents to immediately cease offering any security in Texas until properly registered or exempted under the Texas Securities Act. They must also stop committing fraud in connection with security sales within the state. Violations of such an order carry substantial penalties, including fines of up to $10,000 per offense and prison sentences ranging from two to ten years.
The Texas State Securities Board, a state agency dedicated to protecting investors, frequently issues emergency cease and desist orders to prevent immediate harm. These actions allow the regulator to halt fraudulent activity swiftly, often without prior notice to the respondents. The Texas Securities Act, specifically sections 7.A and 10.A, grants the TSSB broad powers to enforce prohibitions against the sale of unregistered securities and fraudulent practices.
The 9xProfits case is not isolated. New Zealand's Financial Markets Authority issued its own warning against 9xProfits last month, highlighting the scheme's international reach. Such warnings from multiple jurisdictions indicate a broader pattern of regulatory concern. Online investment schemes, particularly those involving cryptocurrency and multi-level marketing structures, often operate across borders, complicating enforcement efforts. Victims are frequently lured by the promise of easy wealth and the perceived sophistication of "AI trading" technology, masking the underlying Ponzi structure where early investors are paid with funds from newer participants. When these schemes collapse, as they almost always do, investors face significant financial losses.
The Texas State Securities Board encourages anyone who believes they may have been defrauded by 9xProfits or a similar scheme to contact their enforcement division at 877-927-8371 or file a complaint online at www.ssb.texas.gov.