The Texas State Securities Board has issued an emergency cease and desist order against cryptocurrency investment company FxBitGlobe. The company is accused of using a false address as well as forged government records, misrepresenting its status as a registered broker-dealer and investment adviser to a potential client. FxBitGlobe allegedly offered illegal international investments tied to cryptocurrencies and foreign currencies.
FxBitGlobe offered multiple tiered investment plans. The lowest starting at $500 and promising a monthly return of 25 per cent; and the highest of at least $50,000—offering a 70 per cent monthly return. Investments were payable in either fiat or cryptocurrency. While promising large returns, it did not provide any strategy for achieving them.
Although the company is not a registered broker-dealer, it posted a certificate claiming it had been registered as a private limited company with Companies House. Similarly, it claims to be a registered investment advisor, member of the Financial Industry Regulatory Authority, and a member of the Securities Investor Protection Corporation. However, in reality, it wasn't registered with either FINRA or the SIPC, the document states. It has also never been registered with either the U.S. SEC or the Securities Board as an investment advisor.