The Securities Commissioner of Texas Travis J. Iles decided to issue an urgent cease and desist order to FxBitGlobe-a crypto related website. In the latest cryptocurrency news today, we find out more about his decision.
The site FxBitGlobe was ordered to stop doing business with anyone from the State of Texas. The order explains the structure of the scam in a long and detailed report saying that this is a case where only a group of lawyers can be useful. The site has an address in Houston that doesn’t actually exist. They also claim to be a member of the SIPC which is actually a regulator and that is an untrue fact. They are ordered to stop doing business after ‘’ misrepresentation of relevant facts.’’
FxBitGlobe offers a stunning 70% returns depending on the amount invested. They do not explain how they would cover the returns. Elements such as these usually show the signs of a huge Ponzi scheme and we have already seen so many of them in the past. Crypto Ponzi Schemes are a huge contributor to market volatility.
The company is also involved in recruiting unregistered sales promising them a commission of up to 5 percent. The company also doesn’t provide any details or information about how they will make the returns but it provides details of false registration information.
Regarding the referral commissions are a massive driving force when it comes to Ponzi schemes. This could be a legitimate tool for many companies but in the crypto industry, they change the natural course when it comes to making decisions. People usually get their friends and family involved and believe that they are getting into something good only to lose everything soon after.
FxBitGlobe has 30 days to respond in court. The government in Texas could bring an actual lawsuit against the company and charge it if they find any of the agents in Texas. Further, if anyone from the state gets scammed, criminal actions will be brought.
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