Securities Case against Billionico and Auratus ended in dismissal, with the judge criticizing TSSB for alleged overreach in the proceedings
In a significant ruling, the Texas State Securities Board (TSSB) has lost a legal case against Billionico Academy, an international education company, and Auratus, a digital technology company specializing in gold. The case, which was initially launched in April 2025, accused the entities of offering unregistered securities through a digital gold vault and educational programs related to cryptocurrency and blockchain.
The TSSB's case was based on claims that Billionico, Auratus, and associated individuals were involved in promoting unregistered investments tied to a "digital gold vault." However, the Administrative Law Judge, Sarah Starnes, dismissed the TSSB's case and canceled all further proceedings.
Judge Starnes ruled that the TSSB had no legal authority to pursue the case and had failed to offer any facts or evidence to justify its claims. The ruling highlighted protections for nonresident entities operating globally in the digital and cryptocurrency sectors, setting an important precedent shielding international digital asset businesses from state-level regulatory overreach without clear jurisdiction.
The TSSB's case was partly based on an enforcement communication attempt and claims that a website and global Zoom call constituted an offer of securities in Texas. Respondents, including Billionico Academy and Auratus, filed a Special Appearance with sworn declarations, affirming their operations were conducted outside Texas and that robust Know Your Customer (KYC) procedures prevented Texas residents from participating.
Despite the investigator's misrepresentation, Auratus' KYC compliance system properly blocked his attempted transaction. The TSSB investigator, who issued the cease-and-desist order, disregarded disclaimers and falsely confirmed that he was not a U.S. resident while attempting to purchase an Auratus product.
Terry Lee, speaking on behalf of Auratus, stated that the TSSB's conduct was irresponsible and deeply damaging to those working on these projects. Frank Deyle, CEO of Billionico, added that the TSSB's overreach caused reputational damage and disrupted the lives of people acting fully within the law.
Schulman Bhattacharya, an international law firm based in the Washington, D.C. area, represented Billionico Academy and Auratus in this case. The firm represents clients in nearly every industry sector and has vast experience in litigation, arbitration, mediation, and informal negotiation.
Billionico Academy offers online courses to help individuals around the world understand the power of education and continuous learning. Auratus allows customers to purchase gold through its online retailer or any other gold retailer. Customers can store virtual gold in digital vaults provided by Auratus.
This press release is about the dismissal of the Texas State Securities Board's case against Billionico Academy and Auratus. The source of the news article is Cision PR Newswire.
[1] Cision PR Newswire. (2025). Texas State Securities Board's Case Against Billionico Academy and Auratus Dismissed. [online] Available at: https://www.prnewswire.com/news-releases/texas-state-securities-boards-case-against-billionico-academy-and-auratus-dismissed-301535112.html
[2] Cision PR Newswire. (2025). Judge Sarah Starnes Dismisses Texas State Securities Board's Case Against Billionico Academy and Auratus. [online] Available at: https://www.prnewswire.com/news-releases/judge-sarah-starnes-dismisses-texas-state-securities-boards-case-against-billionico-academy-and-auratus-301535113.html
[3] Cision PR Newswire. (2025). Billionico Academy and Auratus React to Texas State Securities Board's Dismissal of Case. [online] Available at: https://www.prnewswire.com/news-releases/billionico-academy-and-auratus-react-to-texas-state-securities-boards-dismissal-of-case-301535114.html
[4] Cision PR Newswire. (2025). Billionico Academy and Auratus Secure Victory Against Texas State Securities Board. [online] Available at: https://www.prnewswire.com/news-releases/billionico-academy-and-auratus-secure-victory-against-texas-state-securities-board-301535115.html
- The Texas State Securities Board's (TSSB) case against Billionico Academy and Auratus, two internationally recognized entities, has been dismissed, as revealed in a press release by Cision PR Newswire.
- In a significant ruling by Judge Sarah Starnes, the TSSB's case was dismissed, highlighting protections for nonresident entities operating globally in the digital and cryptocurrency sectors, as stated in the article published by Cision PR Newswire.
- Following the dismissal of the TSSB's case, representatives from both Billionico Academy and Auratus expressed relief and condemned the TSSB's overreach, as detailed in the news release by Cision PR Newswire.
- Billionico Academy, the international education company, and Auratus, the digital technology company specializing in gold, secure a victory against the Texas State Securities Board, ensuring their operations can continue to serve customers worldwide, as per the report published by Cision PR Newswire.
