Japan's court case against three unregistered firms
Where it stands now. The application was filed on 10 November; no court decision on it had been reported as of the articles read.
The record 1 development
Japan's securities watchdog asks a Tokyo court to bar three unregistered firms that regulators say pitched bitcoin ETF investing
What happened. Japan's Securities and Exchange Surveillance Commission applied to the Tokyo District Court on Tuesday 10 November for an order barring 4CAPITAL MANAGEMENT LLC, Shibata Sogo Kenkyujo and Ando Sogo Kenkyujo, and each firm's representative, from what it says is unregistered solicitation of overseas investment products, CoinPost and CRYPTO TIMES reported. The Financial Services Agency added the three firms and their representatives to its list of unregistered businesses the same day. According to an investigation by the Kanto Local Finance Bureau, the firms told investors one of the products could also invest in spot bitcoin ETFs, CoinPost and CRYPTO TIMES reported.
Why it matters. The commission says the three firms raised about 4.9 billion yen from at least 2,141 investors (counted per investment) between February 2021 and February 2026, CoinPost reported. The commission sought the order because it says the unregistered business could continue, CRYPTO TIMES reported. CRYPTO TIMES noted that whether a firm is registered can be checked on the Financial Services Agency's website.
- The products, "Evolution" and "S&P500 Index", were put together by insurers and others in the US-based ITA Group (known as Investors Trust); according to the Kanto Local Finance Bureau's investigation, "S&P500 Index" was pitched as principal-protected with a promised 160% payout over 20 years, and the commission points out that returns are not guaranteed, CoinPost reported.
- Separately, Ando Sogo Kenkyujo also handled Global Bridge Fund LLC bonds (12% a year, one year) without registration, taking in about 2.5 billion yen from at least 402 investors (counted per investment), CoinPost reported.
- The firms also brokered discretionary investment contracts with Singapore's Gu Property, which the Tokyo District Court ordered on 9 October to stop unregistered business, CoinPost and CRYPTO TIMES reported.
- The application is under Article 192 of the Financial Instruments and Exchange Act, under which a court orders a halt if it finds urgency and a need to protect investors, CRYPTO TIMES reported.
- The commission said the application does not stop the firms refunding customers, but warned that unregistered firms sometimes use other customers' money for refunds, CoinPost reported.
Read the originals (3), usually in their own language
- Securities watchdog seeks injunction against three unregistered firms that pitched bitcoin ETF investing as possible · CoinPost, headline translated by us
- Beware "invested via bitcoin ETFs"? Watchdog files against three unregistered firms · CRYPTO TIMES, headline translated by us
- Japan's securities watchdog applies to bar three unregistered firms from soliciting bitcoin ETF investment · Techub News, headline translated by us