FCA beats Xcore in Court
Xcore Capital Limited has lost its court case against the United Kingdom Financial Conduct Authority. This information comes a few weeks after the High Court in the UK proclaimed that FCA Beats Xcore had been operating an investment scheme that wasn’t authorities. This scheme stole £1 million from investors across Great Britain, which prompted the FCA investigation.
Investors who chose to hand over money to Xcore were promised a 6% annual return on their money. Clients were misled, being told that their money was being traded on Equity and FX Markets worldwide. However, most of this money was instead illegally laundered to an office in Mayfair, where the Xcore CEO then spent it. He spent all of the money on new cryptocurrency trades, luxury goods, watches and a wedding.
The High Court declared that Xcore knowingly ran a crypt scheme without receiving the required authorisation from the Financial Conduct Authority. The High Court also ordered that Xcore payout £917,231 to the FCA for the company not to be shut down. However, Jonathan Chitty, the CEO of Xcore, will now be facing prison time for his actions. The FCA will be distributing these funds back to investors so they can recoup on their losses.
Before the court case was resolved, Xcore and Jonathan Chitty had all their funds frozen by the FCA. Even after the court ruling, the order for the funds to be frozen hasn’t been lifted. The frozen funds won’t be accessible to Xcore until they agree to pay the fine. The second the fine has been paid, Xcore will be allowed to once again trade and invest in the cryptocurrency space.