Nui launched a cloud mining operation this week despite facing active securities fraud charges from the state of Texas.

The company announced its new "Kala Mining Product Line" on November 29th, offering affiliates two ways to generate cryptocurrency: cloud mining contracts and hardware purchases. The cloud mining side works like this: investors buy either "Gigahash" or "Terahash" contracts, pay monthly service fees, and watch Kala coins accumulate in their accounts.

Gigahash contracts range from $50 to $1,000 upfront, with monthly fees between $15 and $57. Terahash contracts cost $4,000 plus $115 monthly. Mining rigs sell for $4,000 each. All purchases generate commissions for whoever recruited you into the program, plus commissions from ten additional levels of recruits below you in the structure.

Here's the problem: Kala has no value outside Nui's ecosystem. You can't trade it publicly or exchange it for cash anywhere except through Nui's internal exchange. That structure, combined with the recruitment-based compensation system, puts it squarely in securities territory.

Back in July, the Texas Securities Board served Nui with a cease and desist order for securities fraud. CEO Darren Olayan responded by claiming securities regulations don't actually apply to what Nui does, and vowed to "vigorously defend" against the charges. Since then, Olayan has posted occasional updates suggesting ongoing discussions with the Securities Board, but nothing official has emerged in four months.

The real issue is what happens next. Nui isn't registered to offer securities in Texas. It's not registered anywhere in the United States. Neither Nui nor Olayan appear in the SEC's Edgar database, which tracks registered securities offerings. This means Nui's entire Kala mining operation—launched while under investigation for securities fraud—operates as an illegal unregistered securities offering from day one.

The company is essentially doubling down. Rather than pause operations or modify its business model while the investigation plays out, Nui expanded its product line and opened it to new investors. That's either remarkable confidence that regulators will back off, or remarkable disregard for the law.

The Texas Securities Board hasn't publicly responded to this new product launch. Neither has the SEC. For now, Nui's Kala mining contracts remain available for purchase while the company's legal status remains unresolved.

🤖 Quick Answer

What is the Kala Mining Product Line launched by Nui?
Nui's Kala Mining Product Line, announced November 29th, offers investors cloud mining contracts and hardware purchases. Participants buy Gigahash or Terahash contracts ranging from $50 to $4,000 with monthly service fees, accumulating cryptocurrency in their accounts while generating commissions from recruited affiliates across ten organizational levels.

What regulatory challenges does Nui currently face?
Nui operates under active securities fraud charges from the state of Texas. The company launched its cloud mining operation despite the ongoing cease and desist order, continuing to accept investments through its affiliate commission structure despite regulatory enforcement actions against its business model.

How does the commission structure function in Kala Mining?
The Kala Mining program generates commissions through multi-level recruitment. Participants earn commissions from direct recruits plus ten additional levels of

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