BREAKING UPDATE: On December 30th, 2025, Bobby Gray, founder of TEXITCoin, held a TEXITCoin Miner Update. This call lasted well over an hour and included a new format in which he and his team locked it down to registered attendees only; this is a smart move for sure. Whereas some of the info on this call was stated in a manner that a legal team might not approve, I believe the intent behind Bobby Gray’s words was to provide some factual updates and to correct the record, where the critics, such as myself and, in some cases, haters, have gotten the information out of context or completely incorrect.
Whereas fixing potential regulatory cracks doesn’t negate the past, and regulators will focus on those challenges. I do believe the information Bobby Gray discusses is worth reviewing and provides some context for my earlier and ongoing concerns about the manipulation of the TEXITCoin Mining compensation plan and the potential risk to rank-and-file individuals who had joined. I do want to be clear, my original assessment, as well as my recommendations below, still stand.
This is a HYIP (High Yield Investment Program) where YOU, as the potential investor or promoter, MUST DYOR (Do Your Own Research!) Don’t take my word, or any insider’s word alone. Contact your legal counsel, investment advisor, or accountant for counsel. I would also challenge you to study the regulatory rules surrounding and governing investments and marketing.
In the high-stakes world where cryptocurrency meets network marketing, few projects have captured attention—and ignited debate—like TEXITcoin (TXC). As a Texas-flavored proof-of-work coin aiming to fuse large-scale mining operations with community utility, TXC promised a path to honest money and financial independence. Yet, as 2025 draws to a close, the project stands on shaky ground: a brutal price crash, operational missteps, and leadership decisions that smack of unchecked control. As the founder of Deep South Companies, co-publisher of Income Opportunities Magazine, and a veteran analyst with over 40 years dissecting MLMs, blockchain ventures, and fintech schemes—I’ve scrutinized TXC since its early hype.
My initial October 2025 risk assessment on TalkGigs.News flagged it as a high-risk hybrid teetering on the edge of pyramid-scheme territory, urging extreme caution amid unproven claims and regulatory blind spots. That warning rings truer now, amplified by fresh developments that expose deeper fissures. Backed by my track record, from Bloomberg features on iMarketsLive to niche exposés on MLM pitfalls, including my own SEC settlement in 2013 over past affiliations, my authority stems from balanced, evidence-driven insights. Here, I weave that foundational review with the latest turmoil, delivering a sobering update for anyone eyeing this troubled rocket.
A Veteran’s Lens on TEXITcoin’s Potential Perils
With over four decades in the network marketing and direct sales industries, I’ve earned my stripes as a Hall of Fame inductee, founding member of both the Association of Network Marketing Professionals and the Social Networking Association. As The Beachside CEO, You can find more at my blog at TroyDooly.com, YouTube channel featuring insights on MLM trends and crypto developments, and advisory roles that shape compliance and strategy, currently, as Editor-in-Chief at TalkGigs.News, and Co-Publisher at Income Opportunities Magazine, I oversee coverage of the gig economy, network marketing, and digital assets, while advising fintech companies in the USA, Australia, and Hong Kong on regulatory navigation and risk management.
My expertise extends deeply into legal and regulatory scrutiny: I’ve reviewed and studied over 120,000 court documents and case files, and hundreds of cases, to understand how regulators think, where entrepreneurs make mistakes, and how scammers plot to con their next victims. Most recently, I worked closely with the defense team as an advisor and witness in a $300 million alleged crypto Ponzi/pyramid case. The case settled with the founder paying $24 million in fines, over $11 million to potential victims, and over $25 million in legal fees; he was found guilty of promoting unregistered securities.
My October 2025 assessment dissected TXC’s business model (affiliate-driven mining shares), tokenomics (capped supply with halving events), affiliate program (binary incentives that risk pyramid labels), and legal compliance (an unregistered structure vulnerable to FTC/SEC scrutiny under the Koscot and Howey Tests). It highlighted unproven mining yields, opacity in leadership, and high fraud risks—concerns that have only intensified. Transparency is paramount in my work; I openly address my 2013 SEC settlement under Section 17(b) for promoting ZeekRewards without disclosing compensation, as chronicled in BehindMLM. This experience honed my scrutiny, transforming lessons into tools for spotting flaws in MLM-crypto hybrids like TXC.
The Crash: Hype Deflates into a Sub-$1 Abyss
TEXITcoin’s fall from grace accelerated after September, when weekly sales peaked at $9.83 million amid promotional fervor. By December, that figure had cratered to $2.07 million, liquidity evaporated, and daily trading volumes languished at $220,000—slashing the market cap to around $66 million. Founder Bobby Gray, in his December 23 holiday call, attributed the 85% nosedive to phishing scams, a claim that echoes broader crypto holiday slumps and economic jitters. But data from CoinGecko and CoinMarketCap paint a grimmer picture: exhausted reserves ($15 million+ burned on price support), abandoned timelines like the “Path to $16,” and reliance on affiliate inflows that scream unsustainable.
My October assessment warned of this exact vulnerability, growth propped up by recruitment hype rather than verifiable utility, risking a Ponzi-like collapse under pressure. Positives such as Texas pride branding and community scale (56,000 miners, $140 million raised) were noted, but the crash validates those risks: no organic demand, just internal buying drying up amid doubts.
The Phishing Plague: Security Lapses and Unaddressed Victims
A persistent shadow over TEXITcoin is a wave of phishing attacks, often originating from its Telegram channel, where scammers impersonate Gray or team members to extract wallet details or seed phrases. Gray has repeatedly cited these “spoofing” incidents as a primary driver of selling pressure, estimating dozens of cases in which victims lost tens of thousands of TXC, which hackers then dumped on exchanges. In the December 23 call, Gray explicitly tied the market downturn to these thefts, stating: “So, it’s got to be a bunch of people, 10, 20, 30, 40, 50,000 coins that bundled together to put this much pressure on the market to liquidate $15 million of TX or we’ve had $15 million worth of hacks, which is probably about the number that people have been hacked.” He further elaborated on the scale, noting examples such as victims losing 50,000 TXC (valued at $250,000 at peak prices) to imposters posing as “Web Telegram Bobby,” and emphasized the heartbreak of such losses amid the project’s otherwise stable trajectory.
Disruption Banking’s November 13, 2025, report detailed a significant security breach that compromised hundreds of wallets, underscoring systemic vulnerabilities in a project that prides itself on decentralization. Despite the scale—potentially $15 million in hacked coins contributing to the crash, I can find no public evidence that Gray or TEXITcoin notified Texas law enforcement or the FBI. Web searches return general FBI warnings about crypto scams (e.g., 69,468 complaints nationwide in 2023 totaling $5.6 billion in losses) and Texas-specific alerts, such as El Paso’s FBI-impersonation schemes or Jasper County’s $25,000 family loss. However, no mentions directly tie TEXITcoin to official probes. Gray hasn’t indicated leading efforts to contact authorities on the victims’ behalf; instead, calls focus on user education (“lock your cold storage”) without coordinated recovery actions.
Historical parallels show that several crypto collapses were initially blamed on external hacks, only to have investigations later reveal internal complicity or outright fraud. For instance, the infamous Mt. Gox exchange in 2014 attributed its downfall to hacks that stole 850,000 BTC. Later revelations showed that CEO Mark Karpeles was involved in data manipulation and embezzlement, leading to his conviction. Similarly, FTX’s 2022 collapse involved a reported $400 million post-bankruptcy ‘hack.’ Still, the core issues stemmed from founder Sam Bankman-Fried’s internal fraud, which led to his conviction on charges including wire fraud and money laundering.
Compounding risks: Users bypassing U.S. bans on international exchanges (e.g., via VPNs to access platforms like Binance, which are restricted for Americans) face severe consequences. While VPN use itself is legal and recommended for identity protection and data security, falsifying KYC or evading sanctions (e.g., OFAC rules) can constitute fraud or money laundering violations under federal law, with penalties including fines, asset forfeiture, or imprisonment. Texas enforces these laws through its Securities Board, which has pioneered crypto enforcement (e.g., early actions against fraudulent firms). VPN circumvention could trigger civil suits from exchanges or SEC probes under the Howey Test if trading is deemed unregistered securities. No TEXITcoin-specific cases emerged in searches, but precedents like Binance’s $4.3 billion settlement highlight the perils.
The Call: A Marathon of Mandates and Defenses
Gray’s December 23 session, a grueling near-three-hour affair from his home, aimed to rally the troops but exposed authoritarian undercurrents. With co-hosts Tim and Rob in tow, Gray recapped risks (invest only what you can lose, crypto’s wild swings) and highlighted milestones: a 6-7x hash power boost in Conroe, 30% hardware acquisition, and Layer 2 pilots (“Downtown Digital Dollars”) for festival fees that generate TXC demand.
The bombshell! A January 10 compensation overhaul that skips “inactive” accounts (no sponsorships in three months) and slashes payouts from 64% to 53% of revenue. Gray framed it as pruning “bloat” from early earners, but his tone hardened: “Bobby’s program. Bobby makes the rules,” he declared, underscoring his unilateral grip. He even floated slashing personal commissions from $6,000 (three enrollments per side at $1,000/point) to $3,000 by halving point values: “One of the things that’s probably going to happen in the future is we’re going to reduce the value of a point for cash potential from $1,000 down to $500. That way, if you sign up three left and three right, you have a $3,000 cash potential instead of a six.” This MLM-inspired tweak—requiring quarterly activity to retain perks—alienates passives while echoing pyramid incentives.
Q&A devolved into defenses of luxury spending amid losses, scam-related blame-shifting, and threats: “If Bobby decides that you are no longer a positive thing for Texcoin, Bobby will unenroll you from the affiliate program.” Such edicts amplify my initial concerns about centralized control and opacity, where dissent risks expulsion.
Gray’s High-Flying Lifestyle: Community Backlash and Dismissive Rebuttals
Amid the call’s tensions, Gray faced pointed criticism for his extravagant lifestyle—private jets, supercars, and lavish events, clashing with the project’s downturn and community losses. One participant, Steven, articulated the discontent: “My only concern is your change in the comp plan… However, the trips and private jets just look bad when sales are down. I love that the minds are coming online, but I think a lot of the negativity decreases if it looks like the top is backing off the perceived spending spree. Any chance of that happening?”
Gray’s response was unyielding, defending his expenditures as earned and aligned with success: “Maybe, maybe not. Look, number one, um everything that we have is very transparent… I really enjoy flying around private, man. I wish everyone got to fly private. It’s very nice… If you guys are not out there selling and earning commission because I’m driving around in a McLaren or flying private to the meeting out in Tampa or in Puerto Rico, then that’s one thing, but I don’t think that’s really at stake right now.” He later escalated, dismissing detractors outright: “If you don’t like the way I spend my money, then you’re on the wrong rocket.”
This exchange underscores a growing rift: While Gray positions these perks as fruits of the project’s labor, critics see them as tone-deaf amid collapsing value and unfulfilled promises. But is it really Gray’s money if the company is collapsing? Whose money will regulators say it is if they come knocking?
The Controversy: Investigative Firestorm and Echoing Alarms
The call’s aftermath has fueled a backlash, spotlighted by Tim Tolka’s December 22 Disruption Banking exposé, “TEXITcoin: Texas’s Burnt Cash.“ Tolka—a Chicago-based investigative journalist with bylines in Mother Jones, The American Prospect, and Business Insider, commands authority through multilingual probes into fintech fraud across the U.S. and Latin America. His piece dissects TXC as a “high-risk MLM-crypto mashup,” citing Gray’s volatility admissions, retroactive comp shifts, and unproven mining as pyramid red flags.
This resonates with Oz at BehindMLM, a decade-long watchdog whose takedowns of OneCoin and TelexFree establish his niche expertise in unmasking schemes. Oz’s December 24 update flags TXC’s site “disablement” and social neglect as collapse harbingers. Similarly, *CoinMLS* (December 23) and *RevealingFraud* deem it a “likely scam,” citing breaches and affiliate fraud ties (e.g., SEC-settled iX Global cases). Social echo chambers on X and Reddit amplify “shitcoin” labels, linking Gray’s “currency obsessions” to legal voids.
My October review—rooted in my MLM/crypto pedigree—mirrored these dynamics, highlighting failures under the Howey/Koscot Test and unverified yields. The SEC settlement in my past (detailed in *BehindMLM*’s “Dooly pimps Zeek Rewards”) underscores my commitment to transparency: I’ve learned from those affiliations and now advocate rigorous due diligence.
Updated Risk Assessment: Escalating Perils, Fading Prospects
Core October warnings endure, now intensified:
Market/Performance: 85% drawdown exposes the fragility of the hype; brief holiday spikes offer false hope.
Leadership: Gray’s “Bobby makes the rules” autocracy heightens opacity, clashing with community ethos.
Operations: Mining gains are a plus, but comp cuts and breaches signal desperation; Layer 2 remains vaporware.
Regulatory: Unregistered model invites FTC/SEC pyramid probes; global risks loom.
Sentiment: Loyalty erodes; investigative heat accelerates exits.
New alarms: Liquidity burnout, phishing fallout, and MLM pivots scream unsustainability. Positives like hash surges pale in comparison to the authoritarian pivot, which could halve commissions to stem bleeding.
In this Post-Trust Era, TEXITcoin’s rebel dream crumbles under self-inflicted wounds. I strongly advise against investing, or at the very least, conduct exhaustive DYOR. Don’t rely solely on company spin, founder assurances, or promoter hype; cross-verify with independent sources. Consult your personal investment advisor, legal counsel, or accountant before making any move. Facts over flair: that’s the real path to protecting your future.
On December 30th, 2025, before the TEXITCoin Miners Call, as posted above, I was interviewed on the Leadership Legacy Radio Show, discussing in part some of the challenges Mr. Gray addressed that evening, as corrected.
Resources and References:
This analysis draws from the following primary and secondary sources (hyperlinked for verification):
Troy Dooly’s October 2025 Risk Assessment:
Tim Tolka, “TEXITcoin: Texas’s Burnt Cash,” Disruption Banking, December 22, 2025 (article archived/searchable on disruptionbanking.com).
BehindMLM updates on TEXITcoin (December 24, 2025, and ongoing coverage): (search “TEXITcoin”).
CoinGecko TXC page: https://www.coingecko.com/en/coins/texitcoin (price, volume, and market cap data accessed December 2025).
CoinMarketCap TXC page: https://coinmarketcap.com/currencies/texitcoin/ (historical data).
U.S. Department of Justice announcements on BitClub Network (2019–2020 convictions): https://www.justice.gov/opa/pr/three-men-plead-guilty-operating-722-million-cryptocurrency-ponzi-scheme
FBI Internet Crime Report 2023: https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf
FinCEN Bank Secrecy Act guidance: https://www.fincen.gov (search BSA/AML for virtual currency).
Texas Virtual Currency Act (2021): Texas Finance Code Chapter 160.
Always verify sources independently; markets and investigations evolve rapidly.
