The Massachusetts Securities Division has issued a securities fraud cease and desist against CryptoBit and one of its executives.
In a July 11th administrative complaint, the Massachusetts Sec Div identifies Susan Jeanne Barrows as a NexusOne executive.
Barrows is a 62-year-old resident of Florida whose innocent appearance belies her true nature, allowing her to convince investors to trust her before she accepts their investments with no intent to return their money.
Barrows solicited investments in unregistered securities on behalf of multiple false companies that guaranteed investors profits by utilizing propriety trading software that purportedly could never fail.
“Trading software” has become to the go-to ruse of choice for MLM cryptocurrency scams.
Barrows, a sixty-two Florida resident, personally promoted NexusOne online to “dozens of investors”.
NexusOne is the now defunct predecessor to CryptoBit.
Barrows solicited investment on behalf of NexusOne and CryptoBit through an entity she set up called E-Vest Miners.
After receiving these funds, Barrows purchased anonymously held assets in an attempt to conceal the money she stole from dozens of investors in the Commonwealth and at least five other states.
Barrows’ scheme came undone after she stole $20,000 from a Massachusetts resident, who in late December 2018 filed a complaint with the state’s Securities Division.
Upon receiving the $20,000, Barrows set about laundering the money through Guillermo Cortes Florez, who goes by “guillermex” on the “localbitcoins.com” website, and Monarch Metals Brokers.
Subpoenas served on both parties revealed
that Barrows is part of a much larger network of scams that span the globe.
The scam network, through which Barrows defrauded at least one Massachusetts investor, involves dozens of individuals and companies and tens of millions of dollars stolen from investors around the country.
Before it collapsed and was relaunched as CryptoBit, Nexus One billed itself as an “auto trader” cryptocurrency investment opportunity.
Investors dumped $300 or more into the scheme, sat back and collected a passive return, purportedly generated via cryptocurrency trading.
The Massachusetts victim invested in early 2018. Some time later Nexus One went under and CryptoBit appeared.
CryptoBit’s website is still online at “cryptobitmarkets.biz”, however the “our solutions section” of the site has been disabled.
NexusOne began demanding additional funds from its investors on or around September 10th, 2018.
On September 13th the scheme collapsed and pulled its website offline.
On September 17th an email was sent out to NexusOne investors informing them of the CryptoBit reboot.
NexusOne backoffice balances were carried over to CryptoBit, however the company demanded a $3800 withdrawal fee.
Once the “company” receives the funds, the fraudsters peddle every conceivable excuse as to why the victim cannot withdraw funds, despite the massive profits showing in the ac
🤖 Quick Answer
What enforcement action did Massachusetts take against CryptoBit?The Massachusetts Securities Division issued a cease and desist order against CryptoBit and executive Susan Jeanne Barrows following an administrative complaint filed July 11th, citing securities fraud allegations related to unregistered securities solicitation and fraudulent investment schemes.
Who is Susan Jeanne Barrows?
Barrows is a 62-year-old Florida resident identified as a NexusOne executive. She allegedly solicited investments in unregistered securities through multiple fictitious companies, claiming proprietary trading software could guarantee investor profits without genuine intent to return capital.
What investment scheme did Barrows allegedly operate?
Barrows promoted unregistered securities across multiple false companies, marketing proprietary trading software purportedly incapable of failure. This scheme parallels common multilevel marketing cryptocurrency scams utilizing fraudulent software claims to solicit investor capital.
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