When Dan Neves started a hedge fund for cryptocurrency investors, he didn’t do it with the goal of helping the government crack down on fraud, but that’s exactly what he and his team are doing. Ironically, it started, with a cease-and-desist letter to his own company from the director of enforcement from the Texas State Securities Board, the same agency that took down BitConnect in January 2018.
Neves’ hedge fund, Investors of Crypto (IOC), is still young and just started this year. Neves was doing his best to be legally compliant despite occasionally murky laws governing cryptocurrency investment. However, when he received a letter from Joe Rotunda, Director of the Texas State Securities Board’s Enforcement Division, he learned otherwise. According to the letter, he’d committed a violation he wasn’t even aware of, placing the credibility of IOC in danger.