A screenshot of Trage Technologies Limited's website, used in alleged cryptocurrency fraud, now under investigation by Georgia authorities.
Many investors were tricked into giving Trage Technologies money for a fraudulent cryptocurrency investment scheme involving arbitrage bots. Graeme Gary Hearn, Michael Holloway and Eric Ture Muhammad (a self proclaimed “Wealth Minister“), a resident of the state of Georgia marketed an an automated cryptocurrency trading program (arbitrage bot) using their company Trage Technologies Limited. They told investors in Georgia that their program was registered with the SEC, which was found to be a lie.
Georgia’s Secretary of State recently issued a cease-and-desist order against Trage Technologies Limited. The company was accused of engaging in cryptocurrency fraud. According to state officials, the company allegedly targeted investors with promises of high returns, leveraging scammy tactics to secure funds while failing to deliver on its commitments.
The Secretary of State’s office stated that Trage Technologies marketed itself as a legitimate investment opportunity in the cryptocurrency space but operated without proper registration or transparency. Investors were reportedly enticed by claims of guaranteed profits, which authorities say were false and designed to mislead.
The cease-and-desist order aims to halt the company’s operations within Georgia and protect investors from further harm. The Secretary of State emphasized the importance of regulatory action in cases like this to safeguard the public and maintain integrity in financial markets, particularly in the fast-evolving cryptocurrency sector.
Victims of the alleged fraud are encouraged to report their experiences to authorities as investigations into Trage Technologies Limited continue. Meanwhile, Georgia officials are urging residents to conduct thorough research before investing in cryptocurrency ventures and to verify that companies are properly registered and comply with state and federal laws.
Update: Texas and California have also issued Cease and Desist orders against Trage.
Filing for a SEC Exemption
Trage never registered with the SEC but instead was claiming it satisfies the criteria set forth in Regulation D, Rule 506(c).
On 6/4/24, Graeme Gary Hearn filed on behalf of Trage Technologies Ltd for a security exemption with the SEC. He is not a United States citizen and this registration was done from the Marshall Islands. It was stated in the filing that the revenue range of the company was over $100,000,000.00. It also claims the minimum amount of investment per investor was $100.00. You can see the form here.
Government Regulations or Education?
Regulations? Instead of regulations, perhaps the United States government should focus on common sense education about investment scams. Think about it: if someone truly had access to an arbitrage bot or similar that generates passive income, why would they ever sell it or even offer you returns from the bot? Why would they create more competition for themselves? You will never have access to something like this unless you code it yourself. Use your brain. Also, the name ‘Trage’ was likely a lazy twist on ‘arbitrage.’
Sources:
Channel 2 Atlanta
Texas Securities Board
CA Department of Financial Protection and Innovation
S Taylor is a crypto trader with five years of experience, having navigated a wide range of market dynamics and witnessed numerous scams firsthand. As a former victim of scams, S Taylor turned their focus to blockchain forensics and Solidity Smart Contract development, gaining deep technical expertise in the field. With a unique insider’s perspective, they’ve been involved in various crypto projects, where they’ve seen how developers can exploit vulnerable investors.
S Taylor is also the published author of Meme Coins Made Easy, a comprehensive guide that teaches beginners about cryptocurrency and how to identify and avoid common scams. S Taylor is dedicated to sharing valuable insights and helping the crypto community stay informed and safe.
Disclaimer: This article is for informational purposes only and should not be considered legal, tax, investment, or financial advice.
