According to the SEC, consumer complaints have been filed against “SuperBinance,” “BTC Investments,” “Bitpayfxpro,” and other companies.
The Securities and Exchange Commission (SEC) has added a number of “misleading” cryptocurrency trading firms to its list of unregistered entities.
The SEC made it plain in its news release that the Public Alert: Unregistered Soliciting Entities (PAUSE) list is simply intended as a warning to investors and does not suggest that the firms on the list have violated US securities laws.
The list itself was published in 2007 and contains names like “SuperBinance” and “Superfxtrading,” which were intended to capitalize on investors’ confusion between Binance and FTX. There’s even a “Gemini M&A” software that mimics the Goldman Sachs mergers and acquisitions app, Gemini.
“Bittrade Capitals,” “247Crypto Trade,” and “Bitpayfxpro,” which were added on Monday, have all been cited for utilizing “misleading information to solicit largely non-U.S. investors.
SuperBinance, Superfxtrading, Crypto-Trading Hub, Cryptobravos, Crypto Forex Trading Ltd, Cryptofxearners, Cryptoprofits, Inc., Xcryptodoubler, and BTC Investments are among the other crypto enterprises on the list.
Firms are placed on the list for “offering incorrect information regarding their affiliation, location, or registration,” according to a news release from the SEC. Even with firms like SuperBinance, the SEC is hesitant to admit that it is attempting to profit from being mistaken for the largest crypto exchange by volume.
Take, for example, “Bitpayfxpro.” By name alone, it may be confused with BitPay, an Atlanta-based Bitcoin payment processor created in 2011. Instead of being categorized as an imposter of a legitimate firm, the SEC refers to it as an unauthorized soliciting entity.
The SEC has famously waffled on whether cryptocurrencies such as Bitcoin and Ethereum are securities. In 2017, William Hinman, the director of the SEC’s division of corporate finance, stated unambiguously that Bitcoin and Ethereum, in particular, were not securities. Recently, SEC Chair Gary Gensler stated that many crypto assets that are now trading in the market “may be unregistered securities, with no required disclosures or market monitoring.”
The SEC’s definition of a well-established corporation can be a little hazy. FTX—the Bahamas-based parent corporation, not FTX.US—has an SEC-registered CIK (central index key) designation. Nonetheless, the regulator does not consider it a “true firm.” As of this writing, FTX’s lone filing with the SEC is the CIK documentation, which serves as an account number.
“The Commission continues to take action to protect retail investors with the publishing of the PAUSE list,” said Jose M. Rodriguez, interim chief of the SEC’s office of market intelligence.