Texas Regulator Issues Cease and Desist Order to Crypto Investment Firm FxBitGlobe

Published at: April 10, 2019

An official notice from Texas State Securities Board, dated April 9, shows that the regulator has issued an emergency cease and desist order against cryptocurrency and foreign currency trading platform FxBitGlobe.

According to the order, the firm, which markets itself as an investment company, reportedly published forged government documents, used a fake address and falsely claimed to be a registered broker-dealer.

The document points out that the service offers multiple investment plan tiers — with the highest tier accepting $50,000 or more — payable in fiat money and cryptocurrency.

The investment tiers allegedly grant investors access to various “service plans,” each of which promise them corresponding greater daily profits and weekly payouts. The largest tier promising the highest returns guarantees investors a monthly return of 70% alongside a 40% to 45% capital insurance, the document notes.

As Cointelegraph reported this fall, North Dakota Securities Commissioner Karen Tyler announced that the agency had issued cease and desist orders against three firms for allegedly offering unregistered and fraudulent securities in the form of initial coin offerings.

More recently, in February, Texas’ securities regulator announced it had reached an agreement with four cryptocurrency companies, which it had accused of selling unregistered securities.

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