Question 1

Is Arbitrade Bermuda a regulated and safe broker for investors?

Accepted Answer

Arbitrade Bermuda and related entities have been found to have breached the Securities Act through fraudulent activities including unregistered trading and illegal distribution of securities. The Tribunal permanently prohibits Arbitrade Bermuda and its affiliates from participating in Ontario's capital markets due to serious misconduct involving the fraudulent promotion and sale of digital tokens. Investors should consider Arbitrade Bermuda as non-compliant with securities regulations and unsafe for investment.

Question 2

What are the financial penalties imposed on Arbitrade Bermuda and its associated entities?

Accepted Answer

The Capital Markets Tribunal ordered significant administrative penalties against Arbitrade Bermuda and associated entities for serious securities law violations. Arbitrade Bermuda must pay $2 million in administrative penalties. Other entities and individuals, including Hogg and related companies, face joint and several liabilities amounting to millions of dollars in penalties and disgorgements totaling over $51 million US dollars, reflecting the scale and severity of the fraud.

Question 3

How did the fraudulent scheme by Arbitrade Bermuda affect investor funds?

Accepted Answer

Arbitrade Bermuda and associated respondents raised over US $51 million from investors through fraudulent sale of digital tokens falsely backed by gold. Over $36.8 million of these funds were misappropriated for purposes unrelated to the investment, including personal benefit and unverified asset purchases. The Tribunal found the tokens worthless and the overall scheme a sham, significantly harming investor interests.

Question 4

Is Arbitrade Bermuda suitable for beginner investors?

Accepted Answer

Arbitrade Bermuda is not suitable for beginner investors. The entity was involved in significant fraudulent activity, including deceptive practices that led to the loss and misappropriation of investor funds. Due to these serious breaches of securities law and the resulting permanent bans, it is strongly advised that inexperienced investors avoid Arbitrade Bermuda.

Question 5

What restrictions have been placed on Troy Richard James Hogg and the corporate respondents?

Accepted Answer

Troy Richard James Hogg and associated companies face permanent prohibitions on trading, acquiring securities, and participating in exemptive relief under the Securities Act. Hogg is permanently banned from acting as a director or officer of any issuer or registrant. The respondents are also banned from acting as registrants or promoters. These restrictions are designed to protect investors and maintain market integrity.

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