In addition to everyone in the MLM cryptocurrency niche being crypto experts these days, turns out they’re all legal experts too.
Trevon James operates a YouTube channel boasting 129,000 subscribers.
Within hours of news of the Texas Securities Board emergency cease and desist to BitConnect going live, James uploaded a video to his channel titled “Texas BitConnect Cease and Desist”.
In the video James falsely asserts that some US states do not require registration of securities.
[0:40] Look, states have rules. Certain states have certain rules.
Hey, you know weed is legal in Colorado, but if I walk outside here and light up a blunt, I’m going to jail.
Okay? So different states have different laws.
Whether James is aware that the offering of unregistered securities is a violation of US federal law, as per the Securities and Exchange Act, is unclear.
If so, James doesn’t seem to care, as he then goes on to instruct Texas BitConnect affiliates in circumventing the Securities Board cease and desist.
[0:57] If you’re in Texas and you got a BitConnect account, you need to download a VPN. Alright?
[1:18] Load you a VPN, they all are good, and keep using BitConnect.
Don’t let Texas, don’t let them government shut you down.
Governments are pussies bro. They haters, they mad ‘cus we making money.
[1:37] Uhm, that’s pretty much all I gotta say about that man. It’s nothing.
Later in the video James admits he hasn’t read the cease and desist notice.
[3:28] You can read it, I’m not gunna read all this… I’m not gunna waste my time reading this man.
Texas is… you guys are idiots.
Trevon James claims to have “started” in BitConnect with $110.
As of two weeks ago James’ BitConnect backoffice shows an invested balance of $560,080.
How much James has personally stolen through BitConnect is unclear.
Promotion of unregistered securities in the US and incitement of US residents to commit federal crimes, potentially puts James directly in the crosshairs of US regulators and law enforcement.
Whether YouTube condones one of its content creators instructing US residents on how to circumvent state issued cease and desists is also unclear. We’ve reached out to the company for comment.
As MLM cryptocurrency has exploded over the past six months, so too have YouTube personalities pitching scam after scam on the video platform.
To date I’m not aware of YouTube taking any action against scammers using the platform to promote Ponzi schemes.
Being a US company and all, you’d think YouTube would be a little more diligent in policing channels dedicated to promoting Ponzi fraud.