Keep It 100 has received a securities fraud desist and refrain order from California’s Department of Financial Protection and Innovation (DFPI).

DFPI’s August 20th, 2024 order
cites the following respondents:

K100 4Real LTD, dba K-100

the website domain “k-100.net” and

Terrence L. Pounds

As per the DFPI’s Keep It 100 fraud order;

Beginning at least as early as June 2023, K-100 offered and sold securities in the form of investment contracts in California through general solicitations on its website.

K-100 facilitated investor deposits and withdrawals using crypto assets.

As part of its solicitation efforts, K-100 used a pyramid scheme structure that would reward investors for inducing others to send money to K-100.

The investments offered by K-100 were securities that were neither qualified nor exempt from the qualification requirement under the CSL.

The Department has not issued a permit or other form of qualification authorizing K-100 to sell these securities in California.

Pursuant to Corporations Code section 25532, K100 4REAL LTD d/b/a K-100 and Terrence L. Pounds are hereby ordered to desist and refrain from the further offer or sale of securities in California, including but not limited to investment contracts, unless and until the qualification requirements of the CSL have been met.

DFPI also published an accompanying
Keep It 100 fraud awareness video
on its official YouTube channel.

Keep It 100
was an MLM crypto Ponzi launched in mid 2023.

Within days of
BehindMLM outing owner Terrence Pounds’ COVID-19 fraud guilty plea
, Keep It 100
collapsed
on July 29th, 2023.

Pounds was
sentenced to 94 months in prison
and ordered to pay back $4.2 million in restitution in March 2024.

Consumer losses through Keep It 100 and multiple Ponzi schemes Pounds promoted prior to sentencing, remain unaccounted for.

🤖 Quick Answer

What enforcement action did California's DFPI take against Keep It 100?
California's Department of Financial Protection and Innovation issued a desist and refrain order on August 20, 2024, against K100 4Real LTD and Terrence L. Pounds for operating an unregistered securities offering through pyramid scheme structure involving cryptocurrency transactions.

How did Keep It 100 structure its fraudulent investment scheme?
Keep It 100 operated as a pyramid scheme offering unregistered investment contracts since June 2023, accepting cryptocurrency deposits while incentivizing existing investors to recruit new participants through general website solicitations.

Which entities and individuals were named in the DFPI order?
The enforcement order named K100 4Real LTD operating as K-100, the domain k-100.net, and individual Terrence L. Pounds as respondents responsible for the securities fraud and pyramid scheme operations

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