![South African firm (Courtesy: Twitter)](http://bitcoinworld.co.in/wp-content/uploads/2020/08/South-African-firm.jpg)
The Texas State Securities Board (TSSB) and the Alabama Securities Commission (ASC) issued emergency cease and desist orders simultaneously to South African firms over a cryptocurrency credit card scheme to defraud investors in their states
The orders name Liquid Gold Trust, Liquidity Card Solution LLC, Liquidity Global Card Solution and Liquid Gold Trust CEO Lance Angus Jerrard.
According to the order, the defendants promote the Liquidity Card, which purportedly works with stablecoins: USD coin (USDC), Trueusd coin (TUSD), and PAX coin (PAX). However, the accused claim that “it is a Mastercard that functions like a traditional debit card.”
They represent that “cardholders can use the Liquidity Card to receive and spend profits as stablecoins, avoiding taxes that would otherwise be recognized when converting cryptocurrencies to dollars or other fiat currency,” the Texas Securities Board explains, emphasizing:
The system only works, however, if the Liquidity companies can recruit new cardholders. They need money to recruit these cardholders.
“It supposedly launches in October 2020, with the goal of recruiting 8 million cardholders in 36 months,” the order further explains. “As part of the alleged scheme to fund the marketing campaign, the Liquidity companies are selling 8,400 ‘portions’ in their global project partnership. Each portion costs $1,150 and entitles purchasers to residual income derived from fees paid by cardholders.”
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