Bobby Gray, the founder of TEXITcoin, holds weekly Miner’s Updates, during which he transparently describes the chaos and financial mismanagement inside his centralized secessionist crypto project.
The unfortunate news for TEXITcoin investors is that everything is far worse than Gray likes to admit, and Gray admits a lot; it’s just all very carefully framed. Disruption Banking has been pulling apart Gray’s claims since last September in a series of stories that uncovered the holes in Gray’s architecture of obfuscations, half-truths, and lies.
Gray’s Rocketship Crashed
Gray has been a bit testy lately because of the collapse of his flagship token, TXC, over the last few months.
The price trajectory mirrors Bitcoin, Gray is quick to point out, but Bitcoin is completely decentralized, while TEXITcoin is Gray’s personal project, subject to his whims, idiosyncrasies, weaknesses, and narcissism.
TEXITcoin was marketed to crypto noobs at gun shows, so when the bear market hit, many investors ran for the exits, and having been fed Gray’s fantastical “rocketship to $16,” they were understandably upset. Therefore, Gray has aggressively suppressed internal dissent, admitting systemic MLM-style ‘gaming’ of the project, officially abandoning previous financial promises and compensation plans, and revealing a previously concealed hack by an insider.
Insider Backdoor Hack Revealed
In the Week 93 Marathon Call, on January 10, 2026, Gray tried to keep the tone upbeat while informing investors of bad news on multiple fronts and admitting to a second hack, which Disruption Banking alluded to in our previous article on the October security breach.
We knew a TEXITcoin insider had commented on YouTube that the October breach was “not the first time,” but no other information was forthcoming, until this past weekend, when Gray not only admitted an insider created a backdoor but also put a number on the funds lost.
During the Marathon Call, Gray revealed, “It’s hard to find good people, especially when you’re dealing in crypto, man, it’s tough, scams around every corner. I start handing off people’s data, and I go ‘Oh shouldn’t have trusted that developer.’ You saw what happened, what was it, January, we got hacked for $210,000 because we trusted a developer that put a back door in, and we regret it to this day.”
Like many of Gray’s most damaging disclosures, this one was made in the midst of talking about other things and trying to convince investors not to lose heart. Ten seconds later, he was on about new swag giveaways and the struggle to relaunch the project’s website, which is still under construction. He also advised his followers to provide liquidity on exchanges through “limit buy orders.”
After disclosing that there was no progress on the Victoria mining operation and that a power outage in Conroe caused a drop in hash power, Gray admitted he fired the IT team, soliciting his audience, “Anybody know some good IT people?”
Compensation Plan Discarded due to Price Pressure
The mining program was previously the main attraction Gray used to recruit new investors. Not anymore.
Gray explained in a Marathon Call on January 10, “We want our mining program to stand on its own two feet and be profitable all by itself, and right now it isn’t.”
A few months ago, Gray was talking about a 6-month ROI for a $995 investment.
He said, “They’re going to make their money back in 2,618 days… a seven-year ROI,”
adding, “We’re really, really far off from where we started this thing when we were talking about a six-month ROI.”
Gray has tried to bar the exits because he knows he must control the whales of TXC. If they leave, the token goes to zero, so he’s framed HODLing as a loyalty test and ramped up pressure on his remaining followers to relentlessly market to their friends and family.
Hitting Rock Bottom or More Losses?
On January 10, Gray assured his audience that the price won’t go lower, saying, “I think we’re calling the bottom.”
He pressured outreach, saying, “If you want to continue to participate, you’ve got to stay active.”
Gray argued that inactive participants in their rewards program are dumping tokens on the open market, driving down the price, so he changed the compensation plan.
He said, “We can’t continue to pay those people out week in, week out… They go, ‘Well I’ll just dump my extra TX on the open market.’” concluding, “We’re going to put a couple of requirements and stipulations into the comp plan. It’s going to piss a bunch of people off, and it has.”
However, he promises the price will increase from here, saying, “You’ll start to see the price show some signs of life again.”
It might be reasonably asked by our dear idle readers, “But how can he guarantee an upward price trajectory?”
Easy: Gray deploys funds to manipulate the price level. Disruption Banking already reported that Gray burned through $15 million, trying to defend utterly unrealistic price levels.
On January 10, Gray insisted that inflows will be forthcoming at a clip of $100K per week, asking, “What do you think $100,000 will do to the market?”
At the same time, Gray disclosed that the TXC whales are kept in line with a manual, off-market liquidity system designed to prevent large holders from selling on the open market and (further) crashing the price.
Later in the call, he advised, “We connect buyer and seller off-market so it doesn’t affect the price,” adding…“If you want to sell, call me up instead of crashing the market,” later warning, “That’s how small and fragile our market still is.”
The Captain of the Rocketship
Sounds tenuous, but Gray paints a picture of running a tight ship, saying on January 10, “65% of all the coins in existence are locked away on cold storage coins,” and “Only about 35% of the daily output is marketable.”
Okay, Gray is the captain of the rocketship — he actually uses this metaphor to sell his wares — bragging that he personally decides how much capital to allocate to influence the price.
At one point, during the January 10 call, he said, “I do it. And I decide how much capital to allocate. We don’t have a bureaucracy yet. Maybe someday we will.”
He makes bureaucracy sound like a bad thing, while at the same time claiming that the project is decentralized. It’s hard to understand how people square that circle; maybe the idea of Texas seceding from the union (TEXIT like BREXIT) is all they really care about.
Otherwise, it would have to raise red flags when Gray says things like, “We were buying back coins off the market primarily from the miners.”
It should be clear that Gray runs anything but a tight ship, and his narrative of control has been unraveling, but like he said on January 10, “Most people are stockpiling, crossing their fingers.”
Kind of an MLM, but Definitely Not an MLM
On the January 13 Miner’s Update, Gray went into a protracted discourse on how TEXITcoin is definitely not an MLM, but he got a little bogged down, observing, “Look, we’re going to kind of call it an MLM because everyone’s going to think it’s an MLM so soon as we start drawing circles and lines on the board and that pyramid shows up everyone’s going to go ‘Ah see told you pyramid knew it.’ So, take a deep breath guys; it’s going to take a little bit of time; it’s going to take a little bit of energy, but we’re going to convince people. We’re going to show them how it’s not an MLM.”
This went on for some time, until Gray, seeming to lose the thread and become uncharacteristically fed up with his own discursive blathering, announced, “So, let’s not call it anything at all.”
CoinMLS, a certified cryptocurrency consultant, wrote in an email to Disruption Banking, “Unless they can get recruiting numbers up, I’m not sure they’ll have the money for the big sponsorships and advertising so much anymore. I think the low price is going to be an insurmountable headwind to future growth. If they are using OTC TXC sales revenue to prop up the price, I think they’ll be able to keep it at current levels unless news or rumors inspire early TXC investors to start unloading to recoup investment or lock in gains. Bobby mentioned that something like 2/3 or all TXC are sitting in cold storage wallets and haven’t moved. We also know the majority of investors are crypto noobs who probably couldn’t figure out how to sell them if they wanted to without some help.”
Notice, this researcher, who knows the project intimately, emphasizes the “recruiting numbers” to maintain the marketing campaigns, which have likely brought many new investors into the project, in addition to the MLM activities of previous investors. If it sounds like a house of cards, that’s because it is, and Gray’s own words reveal this over and over.
Downtown Digital Dollars
Nevertheless, Bobby Gray is pivoting to an even more illegal scheme he calls Downtown Digital Dollars, a stablecoin, despite the GENIUS Act requiring stablecoin issuers to be registered and have reserves, none of which Gray has done or claimed to have even the intention of doing.
The business model’s economics are weak, according to CoinMLS, after doing a deep dive on the project. The slim profit margins become increasingly untenable as the system scales, and the public blockchain model exposes sensitive business data. Overall, the project is legally dubious, operationally flawed, and unlikely to succeed.
CoinMLS concluded, “Bobby gleefully exclaims, ‘No one has ever done this before!’ And there’s plenty of reasons for that. It’s a lot of work for very little profit, fraught with piles of legal regulation and compliance. Profit margins are slim when you have to deduct the legal, administrative, marketing, and tech support expenses. This does not appear to be a promising endeavor.”
Permissioned v. Centralized
Gray rejects the label “centralized” and instead calls TEXITcoin a “permissioned blockchain,” which is clever but effectively meaningless. It’s a distinction without a difference, but it functions as windowdressing for his audience.
CoinMLS analyzed Gray’s claims, noting that both permissioned and centralized blockchains prioritize control and governance by known parties, but TEXITcoin fails even the most generous permissioned standard because Bobby Gray controls access, governance, privacy, and network participation.
TEXITcoin reportedly runs on only two nodes and lacks shared or consortium-based governance, placing it firmly in the centralized category. CoinMLS concluded that a centralized blockchain fundamentally contradicts the trustless, decentralized ethos of cryptocurrency, making Texitcoin’s claims of being “the future of crypto in America” laughable to experts in digital assets and sophisticated crypto investors.
Taken together, the revelations of repeated internal hacks and ongoing mismanagement paint a stark picture of a project in freefall. Rather than being the resilient, decentralized cryptocurrency it was marketed as, TEXITcoin appears plagued by weak governance, technical vulnerabilities, and an overreliance on charismatic leadership for stability.
With investor trust eroding and fundamental promises repeatedly unfulfilled, the likelihood of recovery looks increasingly remote, leaving many to question whether what remains of TEXITcoin can survive its own internal discord.
Not to worry, however, because as Gray declared on January 10, “Week 93 is the week that we turn this thing all around.”
Author: Tim Tolka, Senior Reporter
#Crypto #Blockchain #DigitalAssets #DeFi
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
The Shocking Truth Behind TEXITcoin’s Collapse: Burnt Cash, Broken Miners, & MLM Logic
How TEXITcoin Hooks Texans with Secessionist Rhetoric, Nonexistent Sponsorships and Mining Mirage
Inside the TEXITcoin Breach: Hundreds of Wallets Compromised After Security Failure
