April 10, 2019, | AtoZ Markets - The Texas Securities Board has recently announced that on April 9, 2019, Commissioner Travis J. Isles has taken emergency measures against FxBitGlobe, the cryptocurrency, and Forex provider. Is FxBitGlobe a scam?
FxBitGlobe case in a brief
In its official statement, the Texas Securities Board outlined that they issued an Emergency Cease and Desist Order against FXBitGlobe to stop an international offering of cryptocurrency and Forex investments as the company is using a fake address and falsely claiming to be a registered broker-dealer and investment adviser.
Also, according to the regulator, the company does not provide any information about how it generates “great returns” which it promises to the clients. The statement from the Texas State Securities Board reads:
“The company is intentionally failing to disclose any information about how it can generate those returns, however. According to the order, FxBitGlobe is not disclosing its principals or their experience. Nor is it informing investors about its assets, liabilities, capitalization, and any other financial information that demonstrates it can pay a fixed rate of return from dealing in historically risky and volatile assets.”
The Texas Securities Board in a brief
The State Securities Board of Texas is responsible for administering and enforcing the Texas Securities Act. The authority adopts and periodically updates rules to ensure investors’ protection and help to avoid unreasonable burdens on legitimate capital-raising activities.
The Texas regulator appoints a Securities Commissioner who serves as the agency's chief administrative officer and supervises the day-to-day activities of the staff.
Is FxBitGlobe a scam?
On its official website, FxBitGlobe claims to be a world-class investment company limited by shares, headquartered in the USA and having offices at various locations worldwide. The company promises high returns and speculates about running several investment projects that have yielded great returns.
In addition, the Forex broker notes that it also recruits traders for trading projects. The entity promises consumers significant monthly returns between 25 percent and 70 percent, which depend on the size of the initial investment.
According to the information on the webpage, FxBitGlobe was founded in 2014 and offers to trade crypto, FX, binary options and insurance investments, according to the statement. The company’s main office is supposedly located in Houston – 1210 Smith St., 77002. However, the Texan regulator states that this address does not exist.
FxBitGlobe does not specify any legal information regarding its authorization
According to the State Securities Board FxBitGlobe claims that investors can find all information regarding the risks associated with the investments through its filings with the US Securities and Exchange Commission (SEC).
However, the financial securities watchdog of Texas reports, that the entity is not registered with the SEC and the Financial Industry Regulatory Authority as it claims and there are no such filings, according to the Emergency Cease and Desist Order.
The Texan securities watchdog’s statement says, that FxBitGlobe can challenge the order sent on Tuesday at the State Office of Administrative Hearings in Austin, up to 31 days after it was issued.
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