Fugazi Research issued a cautious note on MMTEC, a holding company that, through its subsidiaries, operates a U.S.-registered broker-dealer and a Beijing-based financial technology platform purportedly serving Chinese institutional investors seeking access to overseas capital markets. The firm says that the company's entire commercial existence relies on MM Global Securities, a FINRA-registered introducing broker previously sanctioned for $450,000 for failing to detect hundreds of instances of potential market manipulation on its own platform, and generates 100% of MMTEC's $807,500 annual revenue, saying that whout MM, MMTEC displays "no U.S. revenue, operational presence, and justification for its Nasdaq listing." Fugazi Research says it considers MMTEC shares "uninvestable at any price above ZERO."
