According to an official notice from Texas State Securities Board, the regulator decided to issue a cease and desist order against a crypto trading company. The firm is known as FxBitGlobe and the decision to issue this order was published on April 9.

Texas Regulator Issues Cease and Desist Order

The order explains that the crypto firm has been using fake addresses and has claimed that it is a registered broker-dealer when in reality it is not. The document says that the firm has also been publishing forged government documents to attract a larger number of investors.

At the same time, the company offers different investment plan tiers in which the highest plan could deposit $50,000. Users can pay for it in fiat or virtual currencies. In general, cryptos are the preferred method for these firms that can easily exchange these coins and avoid being tracked.

Investors that place their funds in the company have access to different service plans that promise daily profits and weekly payouts. One of the most attractive plans is the one that offers a monthly return of 70% and a 40% to 45% capital insurance.

Texas’ securities regulator has also announced that it reached an agreement with other crypto companies in the market that were accused of selling unregistered securities to the market.

Moreover, Texas has proposed to create a regulation that could be even worse than the current BitLicense in the New York State. With it, before accepting a payment using digital currencies, persons would have to verify the identity of the person that is sending the payment whether in bitcoin or any number of crypto assets.

Clearly, there have been several scams and fraudulent companies operating in the market. Indeed, FxBitGlobe seems to be one of these too-good-to-be-true schemes that would steal users’ funds in just a short period of time and disappear with them. Nonetheless, a regulatory framework such as the one proposed by the bill HB4371 is not the solution for these issues.