Stop The Amway Tool Scam Scott Johnson and Peter Mingils talk about Texit Coin Shut down, and the crazy Singapore Herbalife homicides and more MLM news..
The show covers a bunch of topics including Scott’s opinion on Pam Bondi and Donald Trump, and Peter’s Sally Smart Networker story. Here’s an explanation of what’s going on with Texit Coin.
TSSB Issues Emergency Cease and Desist Against Texit Coin: What You Need to Know
In a major move for the Texas cryptocurrency landscape, the Texas State Securities Board (TSSB) issued an Emergency Cease and Desist Order in February 2026 against TEXITcoin, MineTXC, Blockchain Mint, and their founder, Robert J. Gray.
The order, officially designated as Order No. ENF-26-CDO-1893, marks a significant crackdown on what regulators describe as a fraudulent scheme targeting Texas residents with promises of “seats on the rocket ship.”
What Parts of Texit Were Shut Down?
There has been significant confusion regarding whether the state “banned” the cryptocurrency itself or the business operations. To clarify, the TSSB’s primary focus is the protection of investors through the regulation of securities.
Here is the breakdown of what the order specifically targets:
- The Mining Packages: This was the core of the enforcement action. The TSSB alleges that the “Mining Packages” sold to the public were, in fact, unregistered securities. These packages promised passive, daily returns tied to mining operations that the state claims were not properly disclosed or registered.
- The MLM Business Model: The order highlights that these investments were promoted through a multi-level marketing (MLM) structure. Participants were incentivized with commissions and bonuses for recruiting new investors. The TSSB found that neither the respondents nor their sales agents were registered as securities dealers or agents in Texas.
- The Mining Operations: While the act of mining cryptocurrency is not inherently illegal, the state alleges that the specific mining operations managed by MineTXC were part of a “fraudulent offer” because material information—such as company finances and the actual safeguarding of funds—was withheld from investors.
- The Coin (TEXITcoin): The TSSB does not typically “shut down” a decentralized blockchain or the coin itself in a technical sense. However, they have ordered the entities to stop offering or selling these unregistered securities (the investment contracts tied to the coin) to Texas residents.
Understanding the Allegations of Fraud
The TSSB’s Enforcement Division presented evidence suggesting that the respondents engaged in materially misleading statements. Specifically, the “rocket ship” rhetoric promised daily returns while failing to disclose the risks of the underlying mining infrastructure.
“When investor harm is immediate and ongoing, it’s imperative we act quickly,” stated Deputy Securities Commissioner Cristi Ramón Ochoa.
This action serves as a stark reminder that even in the “frontier” of crypto, state laws regarding the sale of investment contracts and the registration of dealers still apply.
Where to Find More Information
For those following the intersection of cryptocurrency and direct selling, it is vital to stay informed on how regulators view these “passive income” opportunities.
Find more information on MLM.News at https://mlm.news and Building Fortunes Radio at https://buildingfortunesradio.com for deep dives into the regulatory impact on the MLM and crypto communities.
Would you like me to summarize the specific registration requirements for cryptocurrency dealers in Texas to help you better understand the legal landscape?
Whether you are a newcomer to the industry or a veteran looking to modernize your workflow, this conversation between Mingils and Johnson offers the clarity and direction needed to build a lasting fortune.
You can see more of what Scott Johnson has on https://www.facebook.com/stoptheamwaytoolscam
The Amway tools scam is a hidden profit scheme within the Amway multi-level marketing (MLM) structure that exploits distributors, often leaving them with financial losses instead of the promised wealth. Amway, a well-known MLM company, markets health, beauty, and home products through independent business owners (IBOs). While the company emphasizes product sales, the real money for top-tier distributors, often at the Diamond level or above, comes from selling motivational “tools” like books, tapes, seminars, and rallies, not from product sales. These tools, promoted as essential for success, create a separate revenue stream that disproportionately benefits upline leaders while draining the profits of lower-level distributors.Distributors are pressured to purchase these overpriced tools, often costing hundreds or thousands annually, with promises of learning the secrets to building a lucrative Amway business. However, studies and lawsuits reveal that 99% of Amway distributors lose money, with average earnings below $100 monthly after expenses. The tools business, controlled by high-ranking distributors like Dexter Yager, generates millions for the elite, who earn significant markups on items like cassette tapes sold at rallies for up to $10,000 a night in cash. Meanwhile, new recruits face high startup costs—starter kits, training sessions, and product samples—further eroding their profits. This creates a pyramid-like structure where uplines profit from downlines’ purchases, not retail sales, resembling an illegal scheme.
