Us regulators have filed charges against First Global Credit(XBT), claiming that it did not register as a firm authorized to mediate in futures exchange transactions (FCM).
In press releases, the commodity futures trading Commission (CFTC) and the securities and exchange Commission (SEC) of the United States claim that XBT, also known as First Global Credit, sold swaps with securities for bitcoin without registration on the national exchange.
The investigation involved the US FBI and the Swiss financial market Supervisory authority (FINMA). According to the charges, XBT requested and accepted futures orders from 24 US clients between March 2016 and July 2017. However, the company did not register as an FCM.
In total, XBT had at least 90 investors who conducted more than 18,000 securities transactions between 2014 and 2019 and entered into transactions “based on securities registered in the United States” worth more than $100 million. At the same time, transactions for $43.8 million were concluded by US residents.
XBT will pay the SEC more than $130,000 as part of the settlement. According to a CFTC press release, the Agency “recognizes that the monetary penalty for XBT in this situation was significantly reduced in light of the company’s cooperation with regulators.”
This is not the first time us regulators have charged cryptocurrency companies. Recently, the SEC dealt an unexpected blow to the upcoming TON blockchain, accusing Telegram of unregistered token sales a year and a half after the ICO.
In September, the SEC accused ICOBox of unregistered token sales worth $14 million, and earlier the Commission charged FINTECH company Longfin with fraud.