Bobby Gray’s Star Lawyers Can’t Fix TEXITcoin’s Math Problem | Disruption Banking
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Bobby Gray’s Star Lawyers Can’t Fix TEXITcoin’s Math Problem
Tim Tolka
July 23, 2026
Disruption Banking has followed the unfolding of the TEXITcoin scam for nearly a year now. We warned investors that the company had illusory staff, fake sponsorships, frequent security breaches, and a founder with a history of fraud. The Texas State Securities Board finally came forward with cease and desist orders back in February, and Bobby Gray, the colorful and charismatic founder of TEXITcoin, has dug in his heels, insisting that the laws he allegedly broke lacked clarity, an argument borrowing bigly from the big crypto moguls and the Clarity Act.<br>Meanwhile, Gray hides out in foreign countries; TEXITcoin’s value hovers around $ 0.20 after crashing from a high of $6.00, and investors pray for a last pump so they can exit without heavy losses.<br>Same Scam, Bigger Law Firm<br>Bobby Gray’s legal team wants a Texas judge to dismiss the securities case against TEXITcoin before trial. Days after Gray and TEXITcoin’s legal team, Quinn Emanuel Urquhart & Sullivan, asked a Texas administrative judge to toss the TSSB ‘s enforcement action against TEXITcoin, Gray’s publicist forwarded Disruption Banking a press release that further absolved Bobby Gray and TEXITcoin from any culpability.<br>The motion argues MineTXC ran a mining pool, not a security, but the underlying numbers tell a different story: the mine is running at roughly 29% of the hash power sold to customers. Add a newly admitted exploit, a pivot to Wyoming’s Iskander Networks, and a founder who keeps turning up in extradition-friendly countries, and the defense looks thinner than the press release suggests.<br>Gray wants the action dismissed before the evidentiary hearing scheduled for August 17th, 2026, but it’s unclear if that’s what will happen. Does “proof-of-work mining pool” hold up legally when the pool physically doesn’t have the hash power it sold, or is that exactly the kind of gap a judge is going to seize on?<br>While the Dubai-based PR firm, Luna PR , categorizes the legal dispute as a misunderstanding, its press release glosses over aspects of the dispute Bobby Gray still hasn’t properly explained. It’s the seventh time in under a year that TEXITcoin’s operation has landed in front of the Disruption desk, and the release reads like the previous five: confident, lawyered, and thin on the details a mining company under a cease-and-desist order might actually need to explain.<br>Enter the Fact-Checker<br>The independent researcher CoinMLS has thoroughly analyzed the Motion for Summary Disposition in a detailed analysis, wherein he cites several discrepancies and contradictory statements made by Gray and his legal team.<br>Quinn Emanuel’s core argument hinges on the idea that MineTXC sold mining packages as part of a proof-of-work mining pool, as opposed to selling an unregistered security. However, MineTXC’s distribution of rewards based on share ownership undermines the argument.<br>Then comes the shifting categorization of MineTXC. In some instances, it’s nothing more than a brand name. In others, it’s a mining pool operator where a user buys hash power to mine TEXITcoin. If that sounds a little foggy, that’s perhaps the idea. What’s also foggy is that, according to CoinMLS, the TXC mine is only 29% the size of the total hash power sold. Where’s the rest of it?<br>Exploit After Exploit<br>What the release also does not mention is the exploit Bobby Gray announced himself, on camera, in the last two weeks. Whether it’s a full-on hack or a little glitch is unclear. Gray called it a “little uh exploit,” while admitting he was up until 3 a.m. making backups and still could not say what system it touched, what it cost, or whether customer funds moved.<br>It would be TEXITcoin’s third or fourth breach, depending on how you count, and Gray has offered no scope, no timeline, and no promise beyond more debugging, which is par for the course with Gray.<br>The Wyoming Escape Hatch<br>Since the Cease and Desist letter, Gray has set his sights on Wyoming’s permissive legal framework and created Iskander (ISK ), a cryptocurrency and digital mining cooperative organized as a Wyoming Decentralized Unincorporated Nonprofit Association (DUNA).<br>Iskander coin is essentially a copy-and-paste version of TEXITcoin’s code, only this time mined in Dubai and endorsed by influencers like the Tate Brothers, whom Bobby Gray paid $5,000 to promote Iskander.<br>To emphasize the project’s “integrity,” Gray appears as a cartoon armadillo in an AI-created video in which he downplays the Cease and Desist letter and explains why everything is above board in the new venture.<br>The video, utilizing infantile graphics that would bore a toddler, maintains the same...