TSSB Issues Emergency Cease and Desist Against Texit Coin: What You Need to Know
In a major move for the Texas cryptocurrency landscape, the Texas State Securities Board (TSSB) issued an Emergency Cease and Desist Order in February 2026 against TEXITcoin, MineTXC, Blockchain Mint, and their founder, Robert J. Gray.
The order, officially designated as Order No. ENF-26-CDO-1893, marks a significant crackdown on what regulators describe as a fraudulent scheme targeting Texas residents with promises of “seats on the rocket ship.”
What Parts of Texit Were Shut Down?
There has been significant confusion regarding whether the state “banned” the cryptocurrency itself or the business operations. To clarify, the TSSB’s primary focus is the protection of investors through the regulation of securities.
Here is the breakdown of what the order specifically targets:
-
The Mining Packages: This was the core of the enforcement action. The TSSB alleges that the “Mining Packages” sold to the public were, in fact, unregistered securities. These packages promised passive, daily returns tied to mining operations that the state claims were not properly disclosed or registered.
-
The MLM Business Model: The order highlights that these investments were promoted through a multi-level marketing (MLM) structure. Participants were incentivized with commissions and bonuses for recruiting new investors. The TSSB found that neither the respondents nor their sales agents were registered as securities dealers or agents in Texas.
-
The Mining Operations: While the act of mining cryptocurrency is not inherently illegal, the state alleges that the specific mining operations managed by MineTXC were part of a “fraudulent offer” because material information—such as company finances and the actual safeguarding of funds—was withheld from investors.
-
The Coin (TEXITcoin): The TSSB does not typically “shut down” a decentralized blockchain or the coin itself in a technical sense. However, they have ordered the entities to stop offering or selling these unregistered securities (the investment contracts tied to the coin) to Texas residents.
Understanding the Allegations of Fraud
The TSSB’s Enforcement Division presented evidence suggesting that the respondents engaged in materially misleading statements. Specifically, the “rocket ship” rhetoric promised daily returns while failing to disclose the risks of the underlying mining infrastructure.
“When investor harm is immediate and ongoing, it’s imperative we act quickly,” stated Deputy Securities Commissioner Cristi Ramón Ochoa.
This action serves as a stark reminder that even in the “frontier” of crypto, state laws regarding the sale of investment contracts and the registration of dealers still apply.
Where to Find More Information
For those following the intersection of cryptocurrency and direct selling, it is vital to stay informed on how regulators view these “passive income” opportunities.
Find more information on MLM.News at https://mlm.news and Building Fortunes Radio at https://buildingfortunesradio.com for deep dives into the regulatory impact on the MLM and crypto communities.
