ParagonEX Network – Another regulator adds UFX Global Limited to warning list

UFX and ParagonEX network of companies

The Australian Securities and Investments Commission (ASIC) added UFX Global Limited and its broker platform UFX.com to the warning list. ASIC advises investors that UFX Global Limited could be involved in a scam. Hence, investors should stay away and not deal with this business as it is unlicensed in Australia.

UFX Global Limited
Address: T19, 1st Floor, Tana Russet Plaza, Kumul Highway, Port Vila, Vanuatu
Website: www.ufx.com

UFX Global Limited is part of the ParagonEX group and operates the UFX.com platform outside the EU. The ParagonEX group of Saar Pilosof and Haim Toledana includes Reliantco Investments Ltd, a financial services provider regulated in Cyprus, as well as the Israeli Toyga Media Ltd and Toyga Online Ltd. ParagonEX and its subsidiary PXexchange Limited are proving the technology, hosting and trading services for UFX.com.

Reliantco Investments is responsible for the operation of UFX.com within the EU, the SEC filing says. Within the group, Toyga is responsible for customer acquisition and support and has respective agreements with UFX. Toyga is entitled to a commission for the acquisition of new customers. It receives 30% of Reliantco’s income derived from the trading volume of the end users referred to Reliantco Investments and 20-80% when referred to UFX Global Limited.

As of June 31, 2018, following a substantial reduction in its workforce, ParagonEx employed 383 fulltime employees. Most of them work in Israel.

Other regulator warnings

UFX.com and UFX Global Limited are still included in the Quebec, Canada, regulator’s warning list of websites and companies that solicit investors illegally

In April 2016, the Nova Scotia Securities Commission cautioned investors about UFX.com, ufxmarkets.com, and Reliantco Investments Ltd. The Commission alerted investors that UFX.com, ufxmarkets.com, and Reliantco are not authorized to sell securities in Nova Scotia.

The Forex Peace Army has also classified the UFX and the related brand Ubinary as a scam.

Ubinary and UFX qualified as a scam by Forex Peace Army

Reverse Takeover with NASDAQ company

The ParagonEX group is currently conducting a sort of reverse takeover with the NASDAQ-listed MICT Inc (see SEC filing) to form Global Fintech Holding Ltd. MICT will be acquired by the newly established Global Fintech Holdings Ltd which will succeed MICT as the Nasdaq-listed company. The transaction was based on an equity valuation of approximately $165 million for ParagonEx and a total equity valuation of approximately $300 million for the combined business.

This transaction is quite remarkable in view of the numerous warnings against UFX from regulators in Europe, Australia, and Canada.