Georgia Secretary of State Brad Raffensperger issued an emergency cease and desist order Wednesday against offshore cryptocurrency firm Trage Technologies Limited for allegedly engaging in fraud and securities violations.
Raffensperger, the state commissioner of securities, had conducted an investigation that found that Trage, its director and executive officer Graeme Gary Hearn, CEO Michael Holloway and Geogia resident Eric Ture Muhammad allegedly violated the Georgia Uniform Securities Act of 2008, and Muhammad falsely claimed that Trage was registered with the U.S. Securities and Exchange Commission.
According to Raffensperger’s office, Trage and its principals misled investors about returns, “including daily profits of $120 and annual returns of $43,800 on a $10,000 investment.” Moreover, the firm didn’t use investor assets for “legitimate trading activities” but transferred more than $79 million to undisclosed external recipients.
Muhammad was also already prohibited from engaging in broker-deal activities because another emergency cease and desist order was issued against him on Jan. 22, 2024.
“This Emergency Order reflects our commitment to protect Georgia’s investors from fraudulent and unregistered securities schemes,” said Raffensperger. “These individuals have jeopardized the financial well-being of Georgians and lied to the public. We urge anyone affected to come forward and seek assistance.”
