AWS Mining served securities fraud cease and desist in Texas
AWS Mining has been served a securities fraud cease and desist by the Texas State Securities Board.
Named as respondents to the notice are
- AWS Mining and AWS Elite
- co-founders Daniel Beduschi and Alexandre Campos
- Jessica Nunes Sivirino, cited as an executive of AWS Mining
- Josiah Kostek, cited as CMO of AWS Mining
- MyCoinDeal, cited as a wallet services provider for AWS Mining and
- Kenneth Luster and his West Texas Oilfield Cloud Miners Club AWS Mining investor downline
In their November 6th emergecy cease and desist order, the Texas Securities Board alleges AWS Mining has engaged in securities fraud.
BehindMLM reviewed AWS Mining a few months ago and found it to be your typical MLM cryptocurrency mining offering.
AWS Mining investors signed up on the promise of a passive return, in addition to pyramid recruitment commissions.
The Texas Securities Board went one step further and pegged AWS Mining advertised ROIs at 200%.
Of note is the Texas cease and desist observes AWS Mining and MyCoinDeal have been registered with the Australian Securities and Investments Commission since June 2017.
ASIC is essentially Australia’s equivalent of the SEC.
Whereas ASIC should be on top of scams operating right under their nose, unfortunately the regulator has a terrible track record for policing MLM related securities fraud.
As we pointed out in our review, AWS Mining fails to offer conclusive evidence it is engaged in cryptocurrency mining. Or that the company uses external revenue to pay affiliates a 200% ROI.
This is cited as an example of fraud in Texas’ cease and desist;
In connection with the offeri of (unregistered) crypto mining power contracts, AWS Mining, Beduschi, Campos and Nunes are intentionally failing to disclose the following material facts about the management of AWS Mining:
A. The relationship between AWS Mining PTY and AWS Mining;
B. The business repute and qualification of Beduschi, Campos, Nunes and other principals of AWS Mining;
C. AWS Mining’s assets, liabilities and capitalization; and
D. AWS Mining PTY’s assets, liabilities and capitalization
E. The identity, business repute or qualifications of the persons responsible for managing the operations of AWS Mining’s cryptocurrency mining farms;
F. Whether AWS Mining is mining bitcoin, ethereum, monero, or some combination of these cryptocurrencies and/or other mineable cryptocurrencies that use proof of work hashing;
G. The type of specialized hardware used to mine cryptocurrencies and the collective hash rates of hardware used to mine cryptocurrencies, whether expresses as GH/s, TH/s, PH/s, or some other metric;
On top of that there are a boatload of disclosure failures cited, which can be read in the Texas Board’s notice.
Following review of collected evidence, the Texas Securities Board concluded
- AWS Mining’s investment opportunity was a security;
- AWS Mining violated the Texas Securities Act by failing to register its securities offering with the Texas Securities Commissioner;
- AWS Mining and the named respondents are engaged in fraud with the offer for sale of securities;
- AWS Mining and the named respondents are making offers containing statements that are materially misleading or otherwise likely to deceive the public.
As part of our AWS Mining review, BehindMLM identified Cynthia Petion as a prominent promoter of the company.
In response to our calling her out for promoting fraud in Africa, Petion stated;
My business resides overseas. And yes, I file my taxes. Idiot.
The SEC doesn’t view Bitcoin as a security – and they sure as hell don’t care if those plans are sold outside of the United States, despite my residency.
Cynthia’s husband, Eddy Petion, claimed our pointing out AWS Mining was engaged in securities fraud violations was “speculative and not factual.”
The Petions are believed to be based out of Florida. According to Eddy Petion’s Facebook page, the couple were recently promoting AWS Mining in Russia.
As at the time of publication neither AWS Mining, any of the other named respondents or Cynthia and Eddy Petion have responded to Texas’ cease and desist.
This site really helps a lot of people. Thank you. Your analysis of these companies scam or otherwise gives us perspective on what they are telling us.
Most of them are lies, hiding in a facade of big ROI that is so tempting for people if they are kept in the dark. Thanks again.
AWS is active in ASIA and i heard in Africa too. If they can actually operate in a country like US and Australia is really scary for people that lives in 3rd world country. They are almost helpless if not for websites like this.
Good Work BMLM!
Thanks for the support!
So basically what this means is Texas is screwing me out of a mining contract that would otherwise still be paying out.
This is dumb, the scam is The Texas State Securities Board robbing me out of my contract that was paying out. Texas is the only one taking a damn thing from anyone.
Everyone at AWS with a contract wanted one they were not forced to do this, so why force a business to stop paying its users.
It is lunacy. It seems like a retarded punishment to me even if they are a scam which you offer no evidence to rather you point to the fact that YOU HAVE NOTHING AND KNOW LITTLE ABOUT THE COMPANY Texas walks up and says…
“You’re a scam!!! So stop paying your customers the return they receive from mining with you and keep that.
Tell them to blame us. Just tell them we are Fed up POS and leave it there. We are not even robbing you. We are just asking the accused “Scammers” to stop paying you.”
“We decided to cancel your contracts… Too profitable and too paying. Well sounds like your job is a Scam everyone. Do you profit from working? Did your bank pay you interest???
Did anyone profit from anything because if so… SCAMS!!! LOCK THEM DOWN!! STOP THE PROFITS AT ONCE. (I am at 25% ROI… 200% ROI that takes time. It is not overnight.) I hope no one’s stocks do well.
Everyone TRY NOT TO PROFIT IF YOU WANT TO KEEP A THING!!” Watch out THEY ARE FREAKING PROFITING OVER HERE!! CRIMINALS!!! HEATHENS!! Starve and smoke them out boys!!!!!”
This action is unreasonable. They have mining equipment dotting the globe plastered on YouTube. IT IS EXPENSIVE TO MINE IN THE USA SO THEY DON’T. THAT IS HOW THEY MAKE IT PROFITABLE AND PAY YOU DAMN F-TARDS!!!
My contract was paying as stated for mining crypto. I had no part in some pyramid affiliate scheme. I made $4 from being an affiliate…WOW! IT IS JUST ME MINING COINS IDIOTS! I invested in a cloud mining contract.
It was paying out fine until I guess they were forced to stop. I guess I needed an unprofitable contract order to be in a legitimate deal?? This is wrong.
If you want AWS Mining to stop honoring my mining contact then TEXAS…PAY ME MY $1600 freaking A-HOLES. You admit a lack of info on their part so their is a lack of info on the states too. Uhhh. We have no clue what you are doing but stop paying people it screams scam.
I have negative $0.16 right now currently getting by…GREAT! Let’s add taking it from behind from the state of Texas to the list of things an unemployable failing engineering student who was recently diagnosed with a debilitating mental illness can do.
You can’t screw people that way in Texas, it is illegal too. That is what Texas is doing to me.
Stop hating on Bitcoin. It is bigger than you. Tax it if you want. Then try to collect. It is how I get paid from any source of income I have, IN BITCOINS, THAT’S IT! THE ONLY WAY!!
I WILL NOT BE ROBBED BECAUSE I WANT TO BUY FOOD. You can try but I have negative funds from the cash I HAD. Well, YOU ARE! You just tell people NOT TO PAY ME! I am owed that!
I bought a cloud mining contract! Get your hands off my shelter and food. I was going to get a pizza. Y’all are so damn rude. Choke on a chicken bone, please.
Nah. They’re enforcing federal securities law that has been in place since 1933.
AWS Mining is operating illegally in the US because it hasn’t registered its securities offering with the SEC.
MLM crypto companies typically don’t register their securities offering because it requires them to provide hard evidence of external ROI revenue.
Said external revenue either doesn’t exist or is nowhere near enough to cover ROI payments, which is where investment fund recycling comes in (Ponzi).
Much easier to just cook up a few video card YouTube videos and Facebook photos. That’s pretty much all they need to suck in your typical knuckle-dragging cryptocurrency investor.
But hey, don’t let the facts get in the way of your misguided anger rant.
DROOPY-POOPY: Your ridiculous rant regarding a platform you knew was a scam got caught red handed by federal laws that have been in place since 1933.
Come on, who are you kidding with this rant, even the smallest amount of due diligence of this platform, you would of knew this was a scam based on US Laws.
Let me get my violen out and play you a song as you cry from making this DUMB investment…
That was VERY obvious WAY before you spelled it out.
One other thing, the cease abd desist isn’t the end.
AWS Mining can always register and provide regulators and investors the legally required disclosures.
Lolol ok I’ll stop now.
I don’t think it is a scam of I would not have put my only $1,600 in this. Lets just (Ozedit: Offtopic derail attempt removed)
And I don’t get ownership of a thing. I am renting equipment that produces cryptocurrency until it produces an amount of cryptocurrency that is 200% ROI or there are 60 days of unprofitable mining (whichever comes first) while paying a 20% fee out of the mining AWS has rented to me to AWS for the maintenance and power caused by the rented equipment.
It is a rentals service nothing more. I never take ownership of a thing. They keep the equipment the whole time which is the outside source that pays out, the production of crypto.
They are literally producing it. It just takes effort, it can’t simply be printed. It takes effort so it has value. It is not funny paper.
why does it matter that YOUR money is in there? somehownit’s not a scam without YOUR money? ridiculous.
If that is your only validation of a scam you have a lot to learn.
I would suggest you start your reading on this site to learn as much as you can.
That is just the current hot / most realistic front story for a scam.
It was “online auctions” or “forex” then “ad packs”, etc. All part of the long con.
If that was at all realistic…they would just fill the proper paperwork and hedgefunds, etc would give them many millions. No need to take $1600 from a mentally unstable hayseed.
Either way your $ is long, long gone. Best to get your mind around it.
Normally its 3d world fools, dreamers who don’t withdraw, and newbies to the money game world who get the shaft in the end.
Nothing you stated changes the fact that AWS Mining is a security and they failed to register their security as legally required.
So why hasn’t AWS Mining registered with the SEC and provided documented evidence to prove external ROI revenue?
Cynthia Petion defends AWS Mining because she is at the top of the pyramid directing tens of thousands of people, which means as long as people put money in, she will collect money.
AWS Mining is raking in millions of dollars weekly from investors and in Florida, they target churches and affinity niches in order to bring large amounts of money into the program.
This is an HYIP program that is ripe and waiting for the authorities to shut it down like Bitconnect.
The question is will the authorities after $200 milliom dollars have been lost or after $400,0000,000 lost?
If you have cash in AWS Mining, be very careful. There is no way to pull it out all at once because the money is locked for 1 year while dividend is paid out on that money.
I am simply stating I don’t think it is a fraud. (Ozedit: An MLM company offering unregistered securities is fraudulent by nature. Waffle removed.)
That fact of the matter is an MLM company offering unregistered securities is fraudulent by nature.
In any country where securities are regulated (pretty much all of them), any company offering securities needs to register itself with the appropriate securities regulator.
By not doing so, AWS Mining is committing securities fraud all over the world. What you think of securities fraud is neither here nor there.
AWS pays contracts to the T. Legitimate company & not a fraud.
Behind MLM sounds like their envious towards AWS. I don’t trust any other company other than AWS.
Behind MLM has a bogus claim against AWS with 0 proof of AWS being a scam. (Ozedit: offtopic derail removed)
Which is why they got the Texas C&D overturned right? I mean all they had to do was registere with the SEC and prove they had a legitimate external source of ROI revenue.
But they didn’t, which is all the proof you need.
Sorry for your loss.
Is AWS as of 7/14/22 still in business?
AWS Mining collapsed in 2019: