R2B Coin Securities Fraud
Texas regulators just shut down another cryptocurrency Ponzi scheme, this time targeting everyday investors with promises that a digital coin would only ever go up in value.
The Texas Securities Board issued an emergency cease and desist against R2B Coin on January 24th. The scheme's operators—David Wu and Eddie Lo—ran the operation from a last known address in Hong Kong, though they claimed to manage it through a shell company called Williams Corporation Limited, supposedly based in both Hong Kong and Dubai.
The regulators quickly spotted a red flag: the same photograph appeared on the R2B Coin website representing two different people—Eddie Lo and someone named George Curry. Williams Corporation presented itself as a "licensed global firm" and "licensed securities dealer," yet it had never registered with any US regulator, state securities board, or the Financial Industry Regulatory Authority.
R2B Coin itself never registered to sell securities anywhere in America.
The scheme worked like countless others before it. Affiliates bought into R2B points, which the company's owners created essentially from nothing and sold for real money—usually Bitcoin or other cryptocurrencies. Investors were told the points would appreciate, a classic securities offering wrapped in crypto language. The company then pitched the investment to Texas residents through "USA conference calls."
Here's where the deception got bold: R2B Coin marketed itself as safer than Bitcoin or Ethereum because, unlike those coins that fluctuate wildly, r2b coin "only goes one way, and that's up." Their pitch promised: "We're only going up. We never go down in value."
That claim is mathematically impossible without fraud. And the Securities Board says R2B Coin committed it repeatedly.
The regulators found the company failed to disclose basic financial information—no assets, no liabilities, no proof of actual revenue. Investors had no way to evaluate risk. The company hid the identities and qualifications of its principals. It never explained how it set coin prices or warned investors that free-market exchanges might later price the coin differently than R2B Coin did.
Without transparency on any of these fronts, Texas concluded that R2B Coin made statements "misleading or otherwise likely to deceive the public." The company's claims about guaranteed upward movement were materially deceptive.
Texas Securities Board investigators determined that r2b coins are securities under Texas law, making R2B Coin's unregistered sales a violation of state law. The emergency cease and desist orders the company to immediately stop selling to Texans and to stop making misleading statements about the coin's performance.
The action marks another victory for Texas regulators who have become increasingly aggressive in targeting MLM cryptocurrency schemes. For investors who bought in, the message arrives too late.
🤖 Quick Answer
What is the R2B Coin securities fraud case?R2B Coin was a cryptocurrency Ponzi scheme shut down by Texas Securities Board on January 24th. Operators David Wu and Eddie Lo promised investors unlimited value appreciation. The scheme operated through shell company Williams Corporation Limited, based in Hong Kong and Dubai, using fraudulent identity verification and misleading regulatory claims to attract victims.
Who were the operators of R2B Coin?
David Wu and Eddie Lo managed the R2B Coin scheme from Hong Kong using the shell company Williams Corporation Limited. They falsely represented themselves as licensed operators and used deceptive practices including identical photographs for different individuals on promotional materials to establish credibility with potential investors.
What regulatory action was taken against R2B Coin?
The Texas Securities Board issued an emergency cease and desist order against R2B Coin on January 24th. This regulatory action immediately halted all
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