US forex and crypto firm told to cease and desist by regulator

Chris Lee

A major regulator in the US has told a firm offering returns of up to 900% over the internet to cease and desist its operations.

The Texas Securities Commissioner, Travis J. Iles, announced that he was ordering the firm Forex and Bitcoin Trader to stop its activities over suspicions about the offer being made to customers.

According to a statement posted on the website of the Texas State Securities Board yesterday (Wednesday), Iles is concerned that Forex and Bitcoin Trader, which is based in New York but which is offering services on a local listings board website in the Texan city of Dallas, could be fraudulent.

An Emergency Cease and Desist Order has been issued against the firm, meaning that it needs to stop its activities immediately.

The worry rests in part on a claim made by the firm that traders could feasibly receive a return of around 900% in just a fortnight.

Specifically, it says that an investor who places down $2,000 will receive $20,000 in return, with a tenth of the profits deducted for fees, as well as some extra for commissions.

However, this is a highly unlikely amount of money to earn from such an investment in such a short space of time.

Forex and Bitcoin Trader claims to offer a range of assets – including commodity-based derivatives, forex pairs and crypto coins.

There are also concerns that the company is purporting to be regulated, when it is in fact not.

“Forex and Bitcoin Trader is claiming to be a licensed broker that is authorized to trade in derivatives, securities, and foreign currency, but according to the order the company is not registered with the Securities Commissioner as a dealer or agent”, said the report from the State Securities Board.

“New York-based Forex and Bitcoin Trader is advertising on Craigslist Dallas, touting a 900% return in 14 days. The firm deals in cryptocurrency investments, commodity-based derivatives, and foreign currency trading.”

The State Security Board claimed that the company was telling traders that it had a range of insurance policies in place which could cover losses.

“According to the order, Forex and Bitcoin Trader is misleading investors by stating it has an insurance policy that backs client funds and a balance sheet with sufficient net capital to guarantee returns”, the State Securities Board explained.

“The company, however, is not disclosing any information about its capital or insurance policy, and it is failing to inform investors of the risks in trading cryptocurrency and foreign currency”, it added.

The order stipulates that the firm may not sell securities or act as a securities dealer. It also tells the firm not to engage in fraud, or to make deceptive statements.

The Texas State Securities Board is a name that those who watch the crypto trading world closely will probably have heard before.

It has taken an unusually proactive stance in the fight against crypto fraud. It was, for example, the first US state securities regulatory body to issue an order which targeted a crypto business.

Chris Lee

Latest news

Scammer Alert – Trader Feedback on The Scams Currently Doing the Rounds
The Forex Fraud team has received more messages from scammed traders pointing out how recent crypto price rallies are bringing an old scam, the double-dip, back to the table. Read more
State of the Nation – Up to Date Reports on Which of the Brokers Can be Trusted – Tickmill
Given the amount of technical and fundamental analysis that goes into running a successful investment strategy, it’s often surprising how many traders skip analysing the health of their broker. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
#2 ForexTB logoYour capital is at risk Founded: 2015 Global Forex & CFD Broker
Number One Broker
LOWEST FEES Visit broker
#3 Tickmill forex broker logoYour capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#5 Forex Broker Pepperstone LogoCFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker

    Forex Fraud Certified Brokers

    Exness Small Logo
    HYCM Logo
    OctaFX Logo
    Vantage FX logo
    IC Markets Logo
    ATFX Logo
    FXTM Logo
    AvaTrade logo
    Plus500 Small Logo
    City Index Logo
    LegacyFX Small Logo Logo
    skilling logo
    XM Logo
    BlackBull Markets Logo