TEXITcoin Scam Investigation: Burnt Cash, Broken Miners & Fake Staff

TEXITcoin founder Bobby Gray burnt 15 million dollars on liquidity as prices fell. Commission rates hit 56%, miners were destroyed by voltage errors, and only 1% of sold hash power is operational. CoinMarketCap rejected listing for centralization.

What Is TEXITcoin? The Texas Secessionist Token

TEXITcoin is a cryptocurrency project founded by Bobby Gray, marketed as supporting Texas secession through blockchain technology. The token’s public narrative rests on engineering price outcomes through disciplined execution, controlled liquidity, and sustained recruitment. However, Gray’s weekly “Miner’s Updates” on YouTube revealed an array of problems transforming the project from controlled trajectory into crisis management.

This is the fourth investigation Disruption Banking has published covering TEXITcoin’s travails. The first explored the project and staff, finding little evidence of existence for several integral team members. The second revealed a security breach affecting hundreds of investor accounts with unencrypted user data. The third investigated claims of sponsorship and mining operations. This latest examination focuses on financial collapse and infrastructure failures.

TEXITcoin is visible across Texas—at gun shows, BBQ joints, on YouTube channels, and in major airports. The aggressive marketing creates legitimacy appearance, but behind the visibility lies concerning financial and operational reality documented in Gray’s own admissions.

The 15 Million Dollar Liquidity Black Hole

Gray’s target price increase from under 4 dollars to 16 dollars for TEXITcoin proved “too aggressive.” He stated, “We blew through 131,000 on BitMart between November 30th and December 2nd,” referring to exchange-side liquidity support. That figure represents just three days of spending to artificially prop up prices.

Gray continued, “I’ve already burnt through all the liquidity… we’ve bought back about 15 million dollars of TXC and still we’ve got downward pressure on our price.” The implication is difficult to ignore: sustaining the price has required continuous capital injections, and even those have proven insufficient. This reveals TEXITcoin’s market price results not from organic demand but from managed support consuming investor capital.

The abandonment of the once-central “path to 16 dollars” narrative makes this explicit. The timeline, Gray admitted, is now “no good based on its timeline” and “no longer accurate” because it is “completely dependent on liquidity.” What had been sold as inevitability is now described as contingency. Price is publicly disavowed as priority, yet privately acknowledged as the primary motivator for participation.

TEXITcoin’s Financial Crisis Breakdown

· 15 million dollars burnt on token buybacks with continued downward price pressure

· 131,000 dollars spent in just three days (Nov 30-Dec 2) on BitMart liquidity support

· 56% commission rate exceeding 50% target, draining funds from operations

· 15 million dollars more needed within 30 days to maintain liquidity credibility

· 300,000 dollars spent on Dallas holiday parade sponsorship for marketing

If liquidity is TEXITcoin’s life support, commission spending is its hemorrhage. Gray warned, “Last week we ran at 56% commission,” referring to the share of incoming funds being paid out to affiliates. “If we run the commission… at 100% that means that we’re paying out as much money as we’re bringing in. That means we don’t have money for building the mine, it means we don’t have money for promotion.”

Infrastructure Disasters: Burnt Miners And Missing Hash Power

Besides burning money on TXC buybacks to bolster price levels, Gray acknowledged spending approximately 1.8 million dollars on mining infrastructure, including 402,112 dollars for four new immersion cooling containers (BC40 Elite), and 1.39 million dollars purchasing 320 L9 ASICs to fill the new cooling capacity. Unfortunately, things have not gone according to plan.

In Victoria, a voltage misconfiguration resulted in Gray and his team having “blew up half the miners in that tub before we shut it down,” causing significant 30 to 60 day delays. This follows an earlier error where the wrong transformer was installed, requiring purchase of 12 new 900 KVA transformers at substantial additional cost.

Two containers in Conroe are installed but still await electrical wiring and ASIC installation. Despite expenditures on hardware, the gap between sales and operational capacity remains vast: 22% of total hash power goal has been sold, and 30% has been purchased and paid for, but only 1% has actually been installed and turned on.

These are not abstract growing pains—they are costly, tangible failures demonstrating technical incompetence. As the security breach illustrates, Bobby Gray lacks technical skills to manage a project like this. When a reporter investigated the staff, none of the names had much to verify their existence.

The MLM Commission Structure Crisis

Gray admitted that TEXITcoin relies heavily on its affiliate marketing program to reach its goal of 95% completion from current 21%. Gray identified a “warning signal” in the project’s financial health, noting internal commission split ran at 56%, exceeding the intended 50% payout target.

The goal is to “protect the integrity of our product” and get commission percentage back below 50% and “under budget” to allow potential reinstatement of rewards like the Supernova bonus for active participants. This concern prompted one of the most consequential policy changes: the expiration of “grandfather privileges.” Effective January 9, members who have not sponsored anyone since October 9 will lose eligibility for ongoing rewards.

Gray explicitly stated: “eliminate all the people that are getting free hash power every week… and then let’s get that number back below 50% under budget back to healthy.” Inactive participants are being reclassified from early adopters to financial liabilities because Gray believes these individuals may be “dumping those coins on the open market.”

Gray acknowledged the MLM appearance: “It smells a whole lot like an MLM,” before defending the structure: “how we’re not a pyramid… You can only make 3,000 dollars a week… The guy that starts all the way at the bottom can make just as much money as the guy that’s all the way at the top.” These defenses hinge on technicalities rather than fundamentals.

CoinMarketCap Rejection And Centralization Concerns

Gray reported that CoinMarketCap ruled out listing TEXITcoin due to “insufficient decentralization”—too much influence concentrated in the founder. At the same time, that influence continues despite Gray’s insistence in other YouTube updates that he will be less involved in decisions.

On December 11, Gray described the network’s control structure: “You can’t mine it without our permission… we can take [your blocks], but you can’t take ours,” highlighting significant centralization despite “decentralized” branding. This admission contradicts fundamental blockchain principles where no single entity should control network participation or block production.

The project appears to have entered holding pattern described internally as “Defcon 3.” Gray said, “December we hit Defcon 3,” invoking escalating crisis metaphor while assuring listeners that Defcon 1—the point of no return—had not yet been reached.

Bobby Gray’s Puerto Rico Tax Haven Strategy

Gray himself decamped to Puerto Rico, a “crypto safe haven,” rescheduling his birthday cruise for a San Juan location instead. Gray explained his relocation as preparation for when the price “pops,” so he can “go sit in time out on the beach in Puerto Rico for 6 months… to help avoid a 300 million dollar tax bill.”

This statement assumes a future liquidity event large enough to generate nine-figure tax liability, and that such gains would be personal rather than broadly distributed. It confirms Gray views TEXITcoin’s upside through individual wealth realization lens, not long-term network stewardship. For participants encouraged to see themselves as ecosystem builders, this framing is difficult to reconcile.

When leadership attention divides between managing fragile projects and planning personal exit strategies, priorities drift. Discussions of tax avoidance sit alongside acknowledgments of missed deadlines, infrastructure failures, and budget overruns without clear separation between personal contingency planning and project governance.

Where To Buy TEXITcoin And Should You?

How to buy TEXITcoin and where to buy TEXITcoin are common questions, but the evidence suggests extreme caution is warranted. TEXITcoin trades on BitMart exchange, though liquidity remains thin and artificially supported by continuous capital injections from Gray himself.

The project’s financial structure shows alarming signs: 15 million dollars burnt with continued price pressure, 56% commission rates cannibalizing operational funds, only 1% operational hash power despite selling 22%, security breaches exposing unencrypted user data, and CoinMarketCap rejection signaling legitimacy concerns.

Before considering how to buy TEXITcoin, potential investors should recognize these red flags indicate high risk of total capital loss. The combination of MLM-like commission structure, centralized control contradicting blockchain principles, technical incompetence demonstrated through burnt miners and security failures, and founder tax planning suggesting personal exit strategy all point toward project failure probability far exceeding success probability.

FAQ

What is TEXITcoin?

TEXITcoin is a cryptocurrency project founded by Bobby Gray, marketed as supporting Texas secession. The project involves token sales and mining operations, but investigations reveal minimal operational hash power, security vulnerabilities, and financial distress requiring continuous capital injections.

How to buy TEXITcoin?

TEXITcoin trades on BitMart exchange, though multiple investigations reveal serious concerns including burnt investor capital, security breaches, MLM commission structure, and infrastructure failures. Extreme caution is advised before purchasing.

Where to buy TEXITcoin safely?

While TEXITcoin is available on BitMart, “safely” may be the wrong question. The project shows numerous red flags including founder admissions of burning 15 million dollars, 56% commission rates, security breaches, and only 1% operational mining capacity despite selling 22%.

Is TEXITcoin a scam?

TEXITcoin exhibits multiple concerning characteristics: MLM-like commission structure Gray admits “smells a whole lot like an MLM,” continuous capital burns propping up prices, security breaches with unencrypted data, fake or unverifiable staff members, and centralized control despite decentralization claims.

Why did CoinMarketCap reject TEXITcoin?

CoinMarketCap cited “insufficient decentralization” as reason for rejection. Gray’s own admission that “You can’t mine it without our permission… we can take [your blocks], but you can’t take ours” confirms excessive centralization contradicting blockchain principles.

What happened to TEXITcoin miners?

Voltage misconfiguration in Victoria destroyed half the miners before the system was shut down. Only 1% of total hash power is actually operational despite 30% being purchased and paid for, demonstrating severe infrastructure failures and technical incompetence.