TSSB vs. TEXITcoin
Transparency as far as attorney-client privilege allows. Every filing, every hearing date, every twist in the road — laid out in plain English. We're fighting this on the merits. We got this.
We showed up, stood tall, and made the record.
The contested hearing in TSSB v. TEXITcoin has concluded. We didn't back down, we didn't hide, and we didn't let the spotlight slip off the facts. Because this community resources its own defense, we walked into SOAH with the best legal minds in the business, the receipts to back every word, and a network that kept running the whole time. We managed money well, told the truth, operated with zero fraud, and now wait for the briefs and the judge's proposal due by year-end. This is what transparency looks like when it matters most.
TSSB case — where things stand right now
- Our reply brief and proposed findings were filed 23 Oct 2026 — no ruling yet; the Emergency Order remains in place
- Mining Package sales continue outside Texas — the C&D stops Texas sales only
- Texas remains restricted — no buying, selling, or earning hash power under the C&D
- We're transitioning from Avi Perry and Quinn Emanuel to Larry Friedman and Friedman & Feiger
- Over $5 million out of pocket so far on legal costs (and climbing)Proof data: HME Beans
- TEXITcoin network remains active — no disruption in service to community
- Joint stipulation due and record closes 20 Nov 2026; judge's Proposal for Decision due 25 Jan 2027
- Don't take our word for it — read the filed briefs, orders, and hearing transcripts in the timeline below
Arizona's Corporation Commission issued a temporary cease and desist naming Iskander Digital Mining Cooperative and two Arizona promoters. Separate state, separate docket, separate case file — the Texas record stays exactly as it is.
Every TSSB filing, every hearing, every twist.
Newest at the top. Click through to read the actual filings on IPFS — pinned, immutable, no edits.
- 23 Oct 2026REPLY FILED
Our Reply Is Filed — Now Finish the Record and Decide
Both sides filed their replies. Ours answer the State's revised fraud theories, explain why buying hash power isn't buying shares in a business, and challenge both the authority and the evidence behind its refund demand. The State's reply, filed the same afternoon, doubles down: it still calls the Mining Packages a pro-rata share of a mine, leans on the SEC's new guidance the other way, and asks the judge to modify the order and force refunds. Our proposed findings set out 154 factual findings and seven legal conclusions for the judge to consider — not rulings she's already made. The State's investigator acknowledged there was no allegation of embezzlement or failure to deliver TXC; that is not a claim that nobody ever lost money trading it. Now both sides must submit their joint stipulation of undisputed facts by 20 Nov, when the record closes. The judge's Proposal for Decision is due 25 Jan 2027. The order remains in place while we wait. Read every filing yourself.
Read the full update →Our post-hearing reply brief (PDF, 42 pages)Our proposed findings of fact and conclusions of law (PDF, 24 pages)The State's reply brief, with attachments (PDF, 57 pages) - 19 Oct 2026NEW ORDER
The Judge Asks the Hard Questions — and the Deadline Slides Again
Judge DeAngelo issued instructions for reply briefs, and the questions she's asking are the ones we've been asking all along. Replies are still due 23 Oct, capped at 35 pages, no rehashing. Each side must answer six questions: whether the TSSB even has authority to order refunds in an emergency-order case (and whether that's ever been done before); why the TSSB's brief quietly switched to demanding the full amount paid instead of what its own Notice of Hearing asked for; what the TSSB actually has to prove for "fraud by omission" — duty, reliance, injury, intent; how the TSSB's new, modified fraud theories fit inside the charges it actually brought; whether "immediate and irreparable harm" is measured when the order issued or at the hearing; and what weight the SEC's March 2026 crypto guidance gets — guidance the TSSB's brief never even addressed. Both sides must also file a joint list of every undisputed fact by 20 Nov, which now closes the record. The cost: the Proposal for Decision moves from 4 Jan to 25 Jan 2027. More waiting, but the right questions.
Read the order (PDF, 4 pages) - 10 Oct 2026HEARING BREAKDOWN
Four Days Under Oath: The Full Breakdown
With both briefs on the record, we published our full breakdown of the four-day TSSB hearing: day-by-day testimony, transcript citations, key quotes, what helped and what hurt, and how it all lines up with the brief we filed. Read it, check it against the transcripts, and decide for yourself.
Read the full breakdown → - 9 Oct 2026BRIEFS FILED
Both Sides File Their Briefs — Now the Judge Decides
Post-hearing briefs are on the record. Ours (95 pages) asks the judge to set the Emergency Order aside entirely. On fraud, it points to the TSSB investigator's own testimony: no money is missing, purchasers received their coins every day, and there is "no allegation" that Bobby lied — the TSSB investigated for eleven months without once talking to him, requesting a record, or visiting a mine, and didn't even defend its fraud claims in oral closing. On securities, it argues a Mining Package is a one-time purchase of hash power paying daily TXC — a commodity priced by an open market nobody here controls — that we repeatedly said was not an investment, and that under the SEC's March 2026 crypto-asset guidance a mining pool's work is ministerial. It also argues we had no fair notice, there was no emergency, refunds aren't properly before the court, and the TSSB's conduct warrants findings of frivolous allegations and possible sanctions. The Enforcement Division's brief (115 pages) asks the judge to affirm the Order with modifications — naming Bobby d/b/a TEXITcoin, MineTXC, Blockchain Mint, and Danagger Resources — to find the packages are investment contracts sold without registration by an unregistered dealer, to keep the fraud findings "to the extent supported," and to recommend refunds. Note what they asked to change: the record forced them to concede their own findings needed fixing. Replies are due 23 Oct; the judge's Proposal for Decision follows. Read both, unredacted, and decide for yourself.
Our post-hearing brief (PDF, 95 pages)The Enforcement Division's brief (PDF, 115 pages) - 8 Oct 2026MORE WAITING
Apparently Two Months Isn't Enough — Decision Deadline Moves to January
Apparently two calendar months isn't enough time to do the right and easy thing. Judge Katerina DeAngelo signed an order on October 8 moving the deadline for the Proposal for Decision from December 22, 2026, to January 4, 2027. Here's the calendar math in the order: the evidentiary record closes October 23, starting the judges' 60-day drafting period. Five holiday days extend that period to December 27 — a Sunday, while SOAH is closed — so the deadline moves again to the next business day, January 4. We believe the record already makes the right answer clear. Instead, this community gets more waiting while the Emergency Order remains in place. This is a scheduling order, not a ruling on the merits, and the January deadline is for the judges' proposed decision, not a final Board decision. All other deadlines remain unchanged, including October 23 for replies and the close of the record. Read the signed order yourself.
Read the deadline extension order (PDF) - 22 Sep 2026GOVERNOR APPEAL
Governor Abbott, This Is Bigger Than TEXITcoin
After the TSSB refused its opportunity to correct the record, we asked Governor Abbott to step in. This is about more than one case: unchecked enforcement threatens Texas's crypto industry, the rule of law, and every innovator asked to trust that state government will deal honestly with the facts. We hope the Governor steps in — not because we need the help, but because it's the right thing to do, and someone has to do it.
Read the governor appeal →Letter to Governor Abbott (PDF) - 28 Aug 2026THEY DECLINED
We Gave the TSSB a Clear Chance to Correct the Record
Our attorneys asked the Board to withdraw the Emergency Order after testimony they say exposed material claims as false. The TSSB declined and chose to continue through post-hearing briefing. We've prepared a documented deep dive into the hearing, our letter, their response, and the cost of leaving disputed accusations standing — because we have to hold each other accountable, in crypto, in society, and above all else, in government.
Read the deep dive →The TSSB's August 28 response - 23 Aug 2026BACK TO WORK
We Waited for Clarity; Now We Go Back to Work
We don't need a new law to tell us what we already knew: we did nothing wrong, and we were never the fraud the state accused us of being. Out of an abundance of caution, we shut down sales everywhere — even though the Cease & Desist technically applied only in Texas — to protect this community and avoid digging a deeper hole. Now the hearing is behind us, the facts are in evidence, and we're ready to reopen Mining Package sales outside of Texas. This is not a reopening in Texas: Texans still cannot buy, sell, or earn hash power, and we will not violate the C&D that remains in place there. We will find other ways for our huge Texas community to stay involved. Sales resume 23 August 2026 at midnight UTC.
- 20 Aug 2026WE STOOD TALL
Court Is Adjourned — What We Learned
The SOAH hearing has concluded and the court is adjourned. We didn't back down. We showed up. We stood tall, and we put the spotlight exactly where it needed to go: on the facts, on the record, and on the truth. Because this community resources its own defense, we walked in with the industry's very best at our side. We managed money well, told the truth, operated with zero fraud, and built a public record that speaks for itself. Now we turn to the briefs and the judge's proposal, due by the end of the year. Whatever comes next, the story of TEXITcoin will be one of transparency under pressure.
Watch the live call review → - 17 Aug 2026LIVE
Hearing Day — Live from SOAH, 9:00am CT
The contested hearing in TSSB v. TEXITcoin (SOAH Docket 312-26-14427) is underway this morning at 9:00am Central and runs through August 20. It's being streamed publicly — watch it yourself instead of taking anyone's word for it. Avi Perry and the Quinn Emanuel team argue the core question on the record: whether a mined, proof-of-work currency with no pre-mine and no issuer is a security. We've published every filing, every cost, and every setback on this page as it happened; the main event is no exception. Regulation by enforcement thrives on the absence of a clear record. Today we make one.
Watch the hearing live → - 27 Jul 2026DENIED
Motion for Summary Disposition Denied — We're Going to Hearing
ALJ Katerina DeAngelo denied our Motion for Summary Disposition. Expected, and not a ruling on the merits: the order says the securities question and the fraud allegations "depend upon disputed facts and competing inferences" that aren't appropriate to resolve on paper. In other words, the judge won't end the case before hearing testimony — exactly the argument the TSSB made in their response. Our legal and procedural challenges (immediate-or-irreparable harm, the Commissioner's authority to order refunds, fair notice, and whether all named respondents are proper parties) were preserved but not granted at this stage. Nothing was decided against us on the law. August is the main event, and we're ready for it.
Read the order (2 pages) - 23 Jul 2026THEIR TURN
The Empire Strikes Back — TSSB Responds to Our Motion
The TSSB filed its 45-page response opposing our Motion for Summary Disposition. Notably, they do not argue we're wrong on the law — they argue the ALJ can't decide this on paper. Their entire theory is that the case turns on disputed facts requiring live testimony from purchasers in August. They lean on Texas's Life Partners test rather than federal Howey caselaw, dismiss Audet v. Fraser as non-binding Connecticut law, and turn our own SEC guidance against us by citing footnotes 105 and 106 — the passages carving out purchasers who passively rely on a pool operator. They also name two investor declarations (Hesse and Webb) and quote our welcome letter's "sit back and enjoy the ride" line. We wrote a full breakdown of what they argued, what they conceded, and what it means for August.
Read the TSSB's response (45 pages)Full breakdown on the blog → - 8 Jul 2026BIG SWING
Motion for Summary Disposition Filed — Quinn Emanuel Swings Back
Our team filed a Motion for Summary Disposition asking the ALJ to end the case now, on the law, before the August hearing. Backed by a sworn declaration from Bobby Gray and a 26-page expert report from Andrew Sotak, CPA (Ankura Consulting) — six numbered opinions covering: TXC is a digital commodity, Mining Package purchasers joined a mining pool, MineTXC performed mining pool operator functions, customers could take physical possession of rigs (200+ did), Respondents operated exactly as advertised (verified on-chain), and under U.S. GAAP the packages are ASC 606 revenue contracts — not securities. This is a big filing. We wrote a full breakdown on the blog explaining what was filed, what each opinion means, and why it matters for August.
Read the full breakdown on the blog → - 19 Jun 2026THE LIST
TSSB Witness List Received and Redacted
It's been quiet for a while — no news is often good news while we patiently wait for our August hearing. We just received the TSSB's witness list. Before sharing it publicly, we redacted the names to protect identities and avoid any possibility of witness tampering from our passionate community. We don't recognize any of the names listed — no rangers, no project team managers. Interesting.
View the redacted witness listTSSB said no 👶 - 6 Apr 2026GLOVES OFF
Formal Answer Filed — Full Denial of All Allegations
We filed our official Answer to the TSSB's Notice of Hearing in SOAH Docket No. 312-26-14427, categorically denying every allegation in the Emergency Cease and Desist Order. Mining Packages aren't investment contracts under Howey. The TSSB does not even claim TEXITcoin itself is a security. Fraud allegations are legally and factually deficient — no specific false statements, no duty to disclose shown, zero allegation of misappropriated funds, no investor losses. This Answer lays the foundation for our Motion for Summary Adjudication and our defense at the August hearing.
Read the full response - 25 Mar 2026PARTIAL W
Hybrid Hearing Ordered — Partial Win on In-Person Request
Administrative Law Judge Katerina DeAngelo granted our motion in part: the four-day merits hearing (Aug 17–20, 2026) will be conducted live at SOAH in Austin, with full in-person attendance for our legal team, witnesses, and community. Remote Zoom attendance still available. Same order also granted pro hac vice for Avi Perry, Alex Rossmiller, and Kurt Wolfe.
Read the order - 18 Mar 2026MARK YOUR CALENDAR
Notice of Hearing
Official Notice of Hearing received from the Texas State Securities Board (SOAH Docket No. 312-26-14427). Formally schedules our contested-case hearing on the merits for August 17–20, 2026 starting 9:00 AM CT — to affirm, modify, or set aside the February 11 Emergency Cease and Desist Order.
Read the Notice - 17 Mar 2026TAILWIND
New SEC Crypto Guidance — Big Tailwind for Our Defense
SEC Interpretive Release No. 33-11412 is a landmark step toward regulatory clarity. It explicitly states that protocol mining on public proof-of-work networks — including pool operations and reward distribution — does not involve the offer and sale of securities under Howey. The TSSB's core premise (shoehorning Mining Packages into unregistered securities based on alleged passive returns) is now at odds with federal standards. Our team is integrating this directly into our hearing prep.
Read the SEC release - 16 Mar 2026GAME ON
Hearing Date Secured — Aug 17–20, 2026
SOAH issued an Order Scheduling Hearing on the Merits in Docket No. 312-26-14427, setting the contested case hearing for August 17–20, 2026, starting 9:00 AM CT. Though Zoom was offered, we elected to attend in person. This multi-day proceeding gives us the full forum to present evidence, expert testimony, and legal arguments.
Read the scheduling order - 11 Mar 2026RECEIPTS
Our Basic Legal Framework
Now that we've consulted counsel and a blockchain/PoW mining specialist, here's the high-level framework: under Howey, our model fails at least two prongs — (1) no promise or guarantee of profits (returns are market-driven and variable based on network performance), and (2) any value in TEXITcoin comes from community usage and real-world adoption, not passive reliance on promoters' efforts. This isn't fraud or passive investment — it's active participation in a decentralized, mineable ecosystem.
- 11 Mar 2026BRAIN HIRED
First Expert Selected
We secured our first expert witness — a highly reputable specialist with deep expertise in blockchain, proof-of-work mining operations, mining pools, and the technical and economic realities of cryptocurrency ecosystems. Their job: make these often-confusing concepts clear and evidence-based for the ALJ.
- 25 Feb 2026STILL TEXAN
Keep Moving Forward — No Pivoting
Honest Money doesn't pivot. We refuse to abandon the U.S.-rooted mission or transform into just another overseas cloud mining project chasing hype. Price doesn't come from hype, influencers, or passive promises — value emerges from usage. Downtown Digital Dollars, fair & festival cashless payments, Layer 2 applications, and active merchant participation are priority #1.
- 24 Feb 2026THIN FILE
TSSB Evidence File Secured — and It's Thin
With the evidence file in hand and under review by Quinn Emanuel: no allegations of actual investor losses, no demonstration of imminent or ongoing irreparable injury, no claims of misuse or misappropriation, no Ponzi assertions, no specific proof of fraud, no identified injured parties or complainants. The order relies on structural interpretations — not concrete evidence of wrongdoing.
- 21 Feb 2026PLAY THE LONG GAME
10-Day Hearing Option Declined; Timeline Strategic
After consulting Avi Perry, we waived the accelerated 10-day hearing option. Avi's call was clear: rushing it would likely lose. Building a winning case requires time for strategy, research, evidence collection, expert witnesses, and comprehensive prep. We're prioritizing a well-prepared, evidence-driven hearing — not a premature setback.
- 20 Feb 2026PUNCHED BACK
TSSB Order Challenged; Hearing Requested
Quinn Emanuel formally submitted a hearing request to Deputy Securities Commissioner Cristi Ramón Ochoa. The filing asserts the Mining Packages don't qualify as securities under the Texas Securities Act, that the order's fraud allegations lack specific false statements, and that the order alleges 'immediate and irreparable public harm' without identifying any actual investor losses or injured parties.
Read the hearing request - 16 Feb 2026TIGERS HIRED
Quinn Emanuel Retained as Lead Counsel
We brought in Quinn Emanuel Urquhart & Sullivan LLP for their unmatched track record in high-stakes securities litigation and crypto enforcement. Leading the team: Partner Avi Perry, co-Chair of QE's Securities Litigation Group and former federal prosecutor who headed the DOJ's Market Integrity and Major Frauds Unit. Recent wins include dismissals of TSSB orders against digital asset projects (Apertum Foundation) by arguing tokens were not securities, plus landmark wins against the CFTC.
- 13 Feb 2026TIGER HUNT
The Search for Counsel Begins
We evaluated firms with deep experience in crypto and securities regulatory defense — particularly those who've successfully challenged similar enforcement actions involving Howey Test interpretations and state-level crypto orders (including against the TSSB itself). We wanted tigers, not settlers.
- 12 Feb 2026PAUSE BUTTON
mineTXC Mining Sales Halted Globally
Immediately following the TSSB's order, TEXITcoin, MineTXC, and Blockchain Mint halted all new Mining Package sales and recruitment — not only in Texas, but everywhere. The order specifically prohibits offering or selling unregistered securities in or from Texas, but we took a cautious, broad approach until clarity is achieved.
- 11 Feb 2026INCOMING
Texas State Securities Board Issues Cease & Desist
The TSSB issued Emergency Cease and Desist Order No. ENF-26-CDO-1893 against TEXITcoin, MineTXC, Blockchain Mint, and founder Robert J. (Bobby) Gray, alleging the Mining Packages constitute unregistered securities sold through a multi-level marketing structure. For 98 weeks prior, mineTXC operated as a community currency project in Texas without any prior regulatory incidents. We are fully complying while pursuing a robust legal strategy.
Read the Cease & Desist Order
Each regulator gets its own case file. Separate timelines, separate filings, no mixing of the record.
TSSB v. TEXITcoin
Emergency Cease & Desist over mineTXC Mining Packages. Four-day contested hearing held at SOAH 17–20 Aug 2026. Briefs and the judge's proposal for decision are due by year-end.
AZCC v. IDMC
Temporary C&D alleging IDMC membership "Seats" are unregistered securities sold by unregistered dealers in or from Arizona. TEXITcoin, MineTXC, and Blockchain Mint are not respondents.
The SEC didn't show up for currency. They showed up for the ICO.
Want the bigger picture behind the TSSB case? We mapped the full timeline of the SEC's relationship with crypto — when they actually walked in, what they went after, the Ethereum parallel, and why a Texas-mined, proof-of-work currency like TXC looks nothing like the things securities regulators were built for.
- Pre-ICO fraud cases (Shavers, Voorhees)
- The 2017 DAO Report & ICO wave
- DeFi, exchanges & staking enforcement
- The Ethereum parallel + DAO rollback
- What "decentralized" & "permissionless" really mean
- Other regulators: FinCEN, OFAC, CFTC, FTC, DOJ
Stay tuned. We'll keep adding.
No spin, just the facts, our side of the story, and what's coming next. Bookmark this page — or subscribe at the bottom and we'll send updates straight to your inbox.