Georgia Secretary of State Issues Cease and Desist Against Crypto Company for Securities Fraud

Georgia’s Secretary of State, Brad Raffensperger, took action against offshore cryptocurrency firm Trage Technologies Limited this week. He issued an emergency cease and desist order, claiming the company was involved in fraud and securities violations.

After conducting an investigation, Raffensperger found that Trage Technologies, along with its director Graeme Gary Hearn, CEO Michael Holloway, and Georgia resident Eric Ture Muhammad, had allegedly violated the Georgia Uniform Securities Act of 2008. In particular, Muhammad falsely claimed that Trage was registered with the U.S. Securities and Exchange Commission.

The investigation revealed that Trage and its principals misled investors, promising daily profits of $120 and annual returns of $43,800 on a $10,000 investment. However, investor assets were not used for legitimate trading activities, with over $79 million being transferred to undisclosed external recipients.

This is not the first time Muhammad has faced such accusations. He was already prohibited from engaging in broker-dealer activities after an emergency cease and desist order was issued against him in January 2024.

Raffensperger emphasized the importance of protecting Georgia’s investors from fraudulent schemes, stating that the individuals involved had put the financial well-being of Georgians at risk. He encouraged anyone affected to come forward and seek assistance.

Trage Technologies and the three principals mentioned in the cease and desist order are now required to cease all activities that violate the Georgia Securities Act of 2008 and are prohibited from selling any security within the state. Furthermore, both the Texas securities commissioner and the California commissioner of financial protection and innovation have also filed cease and desist orders against Trage.

Despite these allegations, Trage Technologies did not respond to a request for comment on the matter.