On February 11, 2026, the Texas State Securities Board (TSSB) issued a cease and desist order against TexitCoin, MineTXC, Mint, and Bobby Gray (aka Rob Gray, Robert J. Gray) for offering unregistered securities through MLM crypto Ponzi schemes. The order targets Mining Packages promising passive returns in TXC token, marketed as a “seat on the rocket ship” for investors to “sit back and enjoy the ride.” TSSB found these packages violate Section 4003.001 and 4004.051 of the Texas Securities Act, lacking registration or permits.
TexitCoin, run by Bobby Gray, operates as a product-based pyramid scheme, recruiting via social media and paying commissions without retail sales. Investors are pitched TXC token mining investments, with returns funded by new deposits, classic Ponzi mechanics. TSSB estimates over $147 million raised, with $65 million paid in commissions. Post-order, Gray and insiders reportedly cashed out, accelerating the collapse. Traffic data shows U.S. dominance, with Texas residents heavily targeted.
TexitCoin’s failure to register as dealers or agents, combined with misleading offers, threatens “immediate and irreparable public harm,” TSSB. The order halts all promotions to U.S. residents, mirroring federal securities law. This echoes cases like GSPartners ($1B+ losses) and Forsage ($340M), where MLM fronts masked fraud. Gray’s scheme, rebooted multiple times, preys on trust in crypto mining promises.
Pending SEC or DOJ action, TexitCoin victims may seek redress through TSSB or class actions. Investors should verify opportunities via ssb.texas.gov and avoid MLM crypto schemes. Bitcoin (BTC) ($113,234) remains stable, according to CoinMarketCap, but fraud erodes trust. Diversify into BTC or USDC with stop-losses below $112,000, TradingView. Follow @TheBlock__ on X for updates. TSSB’s swift action could deter similar scams, strengthening U.S. crypto oversight in 2026.
