Arkbit Capital, Arkbit Capital Holdings, ABC Holdings and ABC Mining have been issued an emergency securities fraud cease and desist from Texas.

  • Arkbit Capital was a Boris CEO MLM crypto Ponzi scheme that emerged in late 2022
  • Arkbit Capital Holdings is a shell company attached to Arkbit Capital
  • ABC Holdings is a Ponzi reboot of Arkbit
  • ABC Mining is part of ABC Holdings

Individuals named in the Texas State Securities Board’s May 28th order include:

  • Paras Khivesara, an Indian national from Telangana created and owned a CoinPayments account Arkbit funds were laundered through
  • Thomas Brewer, Arkbit’s Boris CEO played by US actor Mike Wolfe
  • Delmar Estabrook, a replacement Boris CEO for Brewer

  • Nicolai C. Schou, actor Arkbit staff member
  • Melita Novosel, actor Arkbit staff member
  • Libby Talbot, actor Arkbit staff member
  • Edwin O’Connor, actor Arkbit staff member

Describing the Arkbit scams as “fraudulent MLM schemes”, TSSB’s investigation found the Arkbit scams

are offering investments that purportedly yield daily profits and provide investors, occasionally referred to as “shareholders,” with exposure to the operating margins of digital currency mining.

TSSB documented Arkbit’s use of actors with fake qualifications;

Respondents are representing Respondent Brewer is a “Certified Professional Accountant” and holds “a CPA certification in the state of Arkansas.”

In truth and in fact, Respondent Brewer has not been licensed as a CPA with the Arkansas State Board of Public Accountancy at any time material hereto.

Respondents are also representing Respondent Schou earned a bachelor’s degree in electrical engineering from the University of Texas.

In truth and in fact, Respondent Schou did not earn a bachelor’s degree in electrical engineering, or any other degree, from the University of Texas.

Respondents are representing Respondent Talbot is the General Counsel Adviser for Respondent Arkbit Capital Holdings.

In truth and in fact, Respondent Talbot has not been licensed to practice as an attorney in Arkansas at any time material hereto.

…stock photos;

Respondents are claiming Respondent Arkbit organized the Green-Crypto Summit 2023 and are publishing a video purportedly depicting Respondents Estabrook, Novosel and other purported employees of Respondent Arkbit attending the conference.

They are also publishing information that describes the Green Crypto Summit 2023 as a forum of experts, industry leaders and enthusiasts and concluded it was a “resounding success in advancing sustainability in the blockchain industry.”

In truth and in fact, the media actually depicts the 2023 Crypto Energy Summit 2.0, an event hosted in Cannonsburg, Pennsylvania, in May 2023.

The media was manipulated to falsely show Respondent Arkbit organized the event.

Respondents are publishing videos that purportedly show Respondent Estabrook attended and sat for an “exclusive interview” at Consensus 2022 by CoinDesk in Austin, Texas.

In truth and in fact, neither he nor other employees of Respondent Arkbit were speakers or presenters at the event.

…and misappropriated advertisement from other firms;

Sales agents are advertising Respondent Arkbit and its products using manipulated media, including the following:

A) A sales agent is publishing images of a City Councilmember speaking at a roundtable addressing transportation priorities.

The images have been manipulated to falsely show the City Councilmember is affiliated with Respondent Arkbit and the speakers are promoting the Standard Plans.

B) A sales agent is publishing images of an entrepreneurial coach speaking at a live networking event for empowering women.

The images have been manipulated to superimpose Respondent Arkbit’s logo behind the stage and create the impression the event was affiliated with Respondent Arkbit.

C) A sales agent using the name “Zain Caius” is promoting Respondent Arkbit and its investment through social media. His advertisements include photographs that purportedly depict him.

These photographs, however, are identical to photographs published in a website for an online magazine that purportedly depict an editor who is not named Zain Caius.

TSSB ultimately concluded that Arkbit and the scammers behind it are committing securities fraud.

[Arkbit’s] Standard and Comprehensive ROI Investment Plans are securities as that term is defined in Section 4001.068 of the Securities Act.

Respondents have not been registered with the Securities Commissioner as dealers or agents at any time material hereto.

Respondents are violating Section 4004.051 of the Securities Act by offering securities for sale in Texas without being registered pursuant to the provisions of Section 4004.051 of the Securities Act.

Respondents are engaging in fraud in connection with the offer for the sale of securities.

As a result, on May 28th TSSB ordered the Arkbit companies and associated individuals to “immediately CEASE AND DESIST” committing securities fraud in Texas.

Continued violation of Texas securities law will see Arkbit and associated individuals subject to a $10,000 fine and/or two to ten year prison sentence.

In addition to Texas, Arkansas also issued an Arkbit securities fraud warning last November.