FXCM Inc. (NASDAQ: FXCM) saw its shares hit a new all-time low after the company encountered some difficulties with the U.S. Commodity Futures Trading Commission (CFTC). Specifically, the CFTC banned FXCM from operating within the United States after the agency found that the company made false statements to the National Futures Association (NFA) regarding its positions. It further came to light that the company was taking positions opposite of its retail customers.

As a result, the company will have to pay a $7 million penalty — keep in mind the company has a $31 million market cap. Apart from the penalty, FXCM will never seek to register with the CFTC, and the two founding partners, Dror Niv and William Ahdout, will withdraw from CFTC registration.

According to a press release from FXCM:

FXCM will be withdrawing from business in the U.S. and has signed a non-binding letter of intent with GAIN Capital Holdings, Inc. (“GAIN”) under which GAIN would purchase FXCM’s U.S. customer accounts.  The transaction is subject to regulatory approval and a definitive agreement.  FXCM and GAIN are working to determine the timing for the account transfer and expect to provide further information in that regard in the coming days.  In 2016, FXCM’s U.S. business had unaudited net revenues of approximately $48 million and generated an EBITDA loss, but the costs associated with the business will not be transferring to GAIN.  There will be no changes to FXCM customers outside of the United States.

The withdrawal from this business is expected to free roughly $52 million in capital, and proceeds from the account sale will go toward the repaying of FXCM’s loan from Leucadia National.

Excluding Tuesday’s move, FXCM has underperformed the broad markets, with the stock down 2.8% year to date. Over the past 52 weeks, the stock is down 31%.

Shares of FXCM were trading down about 45% at $3.76 on Tuesday, with a consensus analyst price target of $6.00 and a 52-week trading range of $3.25 to $17.43.

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