- Local regulator issues cease and desist order
- The company is accused of fraud and promotion of securities without a license
California Department of Financial Protection and Innovation (DFPI) released “cease and desist order” against CryptoFX. The cryptocurrency exchange and two platform promoters are accused of violating securities laws.
Since February 2022, the platform has been actively attracting investments using aggressive marketing, high profit guarantees, and a referral system, according to the agency.
The company focused on the Latin American diaspora, offering simple and “transparent” investments in cryptocurrency. The platform received payments from $5,000 to $20,000.
In addition, the exchange carried out educational initiatives, under the guise of which it also promoted its services. The DFPI noted that the majority of investors did not receive the promised profit, and their funds were never returned.
Note that we were unable to find either the platform page on the social network, or its website or other information. There was also no statement directly from the company itself.
If such an order is published, the counterparty has 30 days to appeal it. Otherwise, the decision of the regulator is considered final. We previously reported that in Nevada, the regulator requires full control of Prime Trust. The company ran into financial problems, was unable to pay withdrawal requests and was subject to a similar order.