The Securities Commissioner of Texas, Travis J. Iles issued a cease & desist order to FxBitGlobe. The order directed FxBitGlobe to refrain from attempting to do business with any person in the great State of Texas.
It is to be noted that the aforementioned order outlines the amusement of the scam in in-depth detail. For one instance, the accused company lists an address in Houston which doesn’t even exist. On the other hand, they claim to be a member of the SIPC. Notably, SIPC membership is effortlessly verifiable for a regulator and can easily be determined to be untrue. The cease and desist order calls this a twisting of appropriate facts.
Interestingly, the company offers anywhere from twenty-five to seventy-five percent returns, depending on the amount invested. Moreover, the company doesn’t explain anywhere how they bring together these returns. Setups like this are more often than not the primary signals of a Ponzi scheme.
It is to be noted that referral commissions have been a significant lashing force in the expansion of Ponzi schemes, for quite a long time. In such type of schemes, people generally bring their friends on board, every now and then essentially believing they’re getting into something huge. Usually, in the end, the stakeholders lose everything – including their friendships.
The accused company gets thirty-one days from ninth April to reply in court. Furthermore, the Texas government could bring concrete suit and charges against the company if it finds any of its agents live in Texas. Additionally, criminal fraud actions could be brought, if the company swindles anyone in Texas.
Almost the whole order is based on the sturdy supposition that FxBitGlobe is a current Ponzi scheme. Looking at their website, an unstated reporter, who has several years of experience in tracking Bitcoin-related scams, sees no rationale to distrust the assessment of Texas Securities Commissioner.