Japanese Securities Regulator Seeks Injunction Against Three Unregistered Companies

According to CoinPost, on November 10, the Securities and Exchange Surveillance Commission of Japan filed an application with the Tokyo District Court seeking prohibition and cessation orders against three unregistered financial instruments trading business operators—4CAPITAL MANAGEMENT G.K., Shibata General Research Institute, and Ando General Research Institute—and their three representatives. According to the Commission, the three companies marketed products named “Evolution” and “S&P 500 Index,” established by an insurance institution under the U.S.-based ITA Group, and raised approximately 4.9 billion yen from at least 2,141 general investors between February 2021 and February 2026;

An investigation by the Kanto Local Finance Bureau revealed that the three companies had marketed “Evolution” as an investment vehicle capable of investing in Bitcoin spot ETFs, and promoted “S&P 500 Index” as a principal-protected product guaranteeing a 160% payout of the initial investment upon maturity after a 20-year holding period. The Commission noted that neither product guarantees investment performance. Additionally, Ando General Research Institute, through an agency network that includes Shibata General Research Institute, conducted unregistered sales of private placement bonds issued by Global Bridge Fund G.K., raising approximately 2.5 billion yen from at least 402 individuals; of this amount, transactions routed through Shibata General Research Institute accounted for 132 investors and roughly 800 million yen.

The Commission clarified that the current application does not prohibit refunds to customers, and warned that unregistered operators may utilize funds collected from other clients to process such refunds.