Texas Securities Commissioner issues Emergency Cease and Desist Order against FxBitGlobe
The entity is using a phony address and is falsely claiming that it is registered as a broker-dealer and investment adviser.
US authorities continue their efforts to put an end to cryptocurrency-related fraud. Texas Securities Commissioner Travis J. Iles has taken emergency action to stop an international offering of cryptocurrency and FX investments by an entity using a phony address and falsely claiming that it is registered as a broker-dealer and investment adviser.
The Commissioner has entered Emergency Cease and Desist Order against FxBitGlobe, a company that claims to be one of the world’s leading investment companies that is trading cryptocurrencies, foreign currency, binary options, and insurance investments. FxBitGlobe says it was founded in 2014 and has locations in Houston, the United Kingdom, Germany, China, and Malaysia.
FxBitGlobe is offering investments in products tied to cryptocurrencies, forex, binary options, and insurance. The company is promising monthly returns of between 25% and 70%, depending on the size of the initial investment.
The company is intentionally failing to disclose any information about how it can generate those returns, however.
Furthermore, FxBitGlobe is telling potential investors that any risks associated with the investments are described in filings with the Securities and Exchange Commission. There are no such filings, according to the order, and FxBitGlobe is not, as it claims, registered with the SEC and the Financial Industry Regulatory Authority.
Besides claiming phantom registrations with regulators and non-existent regulatory filings, FxBitGlobe is providing investors an address in Houston that does not exist.
In addition to offering unregistered investments, the company is recruiting unregistered sales agents and promising them a commission equal to 5% of a new client’s principal investment.
FxBitGlobe has 31 days to challenge the order at the State Office of Administrative Hearings in Austin.
In a similar action in November 2018, the Securities Commissioner of the State of Texas has issued an Emergency Cease & Desist Order against My Crypto Mine and Mark Steven Royer. The C&D Order states that My Crypto Mine is issuing investments that have not been registered and that the respondents have not been registered with the Securities Commissioner as dealers or agents. The respondents have failed to disclose a raft of material facts, including ones concerning the business repute, as well as details about the purported crypto mining operations of My Crypto Mine. For instance, there is no information on the type of hardware used to mine cryptocurrencies.