Texas State Securities Commissioner, Travis J. Iles, has according to an April 9 release, taken an emergency action against, FxBitGlobe, a purported foreign and cryptocurrency exchange.
As per the cease order, the regulators claim that the company was using a fake address and also falsely told investors that it had regulatory license to serve as a broker-dealer and investment adviser.
Nature of the Alleged Crime
FxBitGlobe portrayed itself as the one stop shop for trading cryptocurrencies, foreign currencies, binary options, and other insurance investments. The firm claimed that it was founded in 2014 and offices located in different countries including the U.K, Germany, China, and Malaysia.
They also promised investors huge monthly returns up to 25% and 70%, depending on their initial investment and also pay agents up to 5% commission on deposits made by clients they refer to the platform.
Such promises according to the regulatory order are suspicious since FxBitGlobe did not provide any evidence that they have the required expertise, team or resources to meet the large dividends.
Finally, while the firms claimed it is registered with the U.S SEC and the Financial Industry Regulatory Authority, such authorizations do not exist according to the order.
The release notes that the regulators ordered FxBitGlobe to stop offering it service to Texas residents until it becomes duly registered with the Texas State Securities Board. The firm now has 31 days to refute the order or accept the decision.
Meanwhile, at press time, FxBitGlobe’s website is still live even though traffic stats suggest that the platform may not have a significant number of visitors.
In another crypto-related regulatory action in February, Stmarket.co reported that the Texas State Securities Board (SSB) fined four crypto startups the sum of $25,000 for defying local securities law.
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