Texas-based Balanced Energy LLC has reportedly been informed by the Texas State Investments Board to stop getting by itself involved with bitcoin, according to a number of reports.
The particular Southlake company was apparently raising capital using the digital currency and selling unregistered securities — something the particular Board says took place in the Texas Bitcoin Conference in Austin recently.
“ Balanced Energy and Manley are accepting payment by means of Bitcoin, a digital currency that incorporates cryptography and is designed to enable users to send cash over the Internet without using a credit card or bank account, ” the table wrote in a statement. “ Balanced Energy has failed to reveal to investors the risks within using Bitcoin to purchase functioning interests in wells, based on the order. The price of digital foreign currency is subject to extreme shifts, which could affect the amount of money available for business operations. ”
According to the Board’s regulations, a firm must restrict unregistered securities investments to accredited investors or individuals in whose income exceeds $200, 500 per year.
Balanced Energy President Kirk Johnson reportedly told the panel his company did not do any verification of who bought the securities, noting the fact that firm is not the “ paperwork police. ” [source: Austin Business Journal, News-Journal.com]