Administrative Law Judge Rebukes State Regulator for Overreach in Case Targeting Global Education Platform & Digital Gold Vault
NORTH BETHESDA, Md., July 31, 2025 /PRNewswire/ — In a comprehensive legal victory, Billionico Academy, an international education company, and Auratus, a digital technology company with a focus on gold, have prevailed against the Texas State Securities Board (TSSB) in a contested matter in front of the State Office of Administrative Hearings. The judge found that the TSSB utterly failed to show that it had a basis for issuing a cease-and-desist order against the respondents and, therefore, dismissed the TSSB’s case, canceled all further proceedings, and required the TSSB to withdraw the cease-and-desist order against each and every respondent.
“We were accused publicly and aggressively of wrongdoing when we had done absolutely nothing wrong,” said Frank Deyle, CEO of Billionico. “This overreach caused reputational damage and disrupted the lives of people acting fully within the law. We’re pleased the judge made clear that the TSSB never should have brought this case.”
The TSSB had issued an emergency cease-and-desist order in April 2024, claiming that Billionico, Auratus, and associated individuals were involved in promoting unregistered investments tied to a “digital gold vault.” But Administrative Law Judge Sarah Starnes ruled that the agency had no legal authority to pursue the case and had failed to offer any facts or evidence to justify its claims.
“Staff has not alleged facts that would bring Respondents within reach of SOAH’s jurisdiction,” Judge Starnes wrote. She also criticized the TSSB for failing to respond to the Auratus’ and Billionico’s jurisdictional challenge and for declining to submit any counterevidence to support its case.
The case also highlighted troubling conduct by the TSSB investigator who was behind the issuance of the cease-and-desist order. According to Judge Starns’ order, respondents submitted evidence – which the TSSB did not dispute or counter with contrary evidence – that, in attempting to purchase an Auratus product, the investigator disregarded multiple disclaimers that the product was not available in the United States, and falsely confirmed that he was not a U.S. resident. Despite the investigator’s misrepresentation, Auratus’ Know Your Customer (KYC) compliance system properly blocked his attempted transaction.
“This was a misuse of regulatory power that never should have happened,” Deyle said. “This wasn’t just a legal dispute—it was a direct attack on honest people running lawful businesses. We’re grateful the judge saw through it.”
Terry Lee, speaking on behalf of Auratus, added: “We built Auratus with transparency and integrity at its core. The idea that a state regulator would try to regulate foreign entities, and then try to manufacture jurisdiction through the use of false representations, was not just irresponsible, it was deeply damaging to those of us working on these projects. This ruling restores some of that damage, and we appreciate the judge’s clarity.”
Jeffrey Gavenman, lead counsel for Auratus and Terry Lee, and a Member of the law firm Schulman Bhattacharya, LLC, issued the following statement: “We’re pleased with the judge’s decision, which reflects the complete absence of any factual basis for the TSSB’s claims. Our clients are grateful to have been fully vindicated.”
About Auratus & Billionico
Auratus is a digital technology company that provides services focused on commodities, including gold. It offers its customers digital vaults in which customers can store virtual gold and allows customers to purchase gold through its online retailer, or any other gold retailer. Learn more at www.auratus.gold.
Billionico Academy is a global education platform that aims to propel novel ideas and foster enduring knowledge. Its online courses help individuals around the world better understand the power of education and continuous learning. Learn more at www.billionico.com.
About Schulman Bhattacharya, LLC
Schulman Bhattacharya is an international law firm based in the Washington, D.C. area, focused on resolving the most complex, challenging commercial disputes facing its clients—through litigation, arbitration, mediation, and informal negotiation. The Firm’s attorneys have vast experience representing clients in nearly every industry sector. The Firm represents companies of all sizes, locally, regionally, nationally, and internationally, and it represents individuals with valuable commercial and personal interests to protect. Learn more at www.schulmanbh.com.
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SOURCE Schulman Bhattacharya, LLC
