FMA and SFO investigating Christchurch company Arena Capital, trading as BlackfortFX over investor funds.
Napier is the epicentre of online currency trading in New Zealand.
A decision released to NBR ONLINE says Stephen Smith was granted parole last year.
The regulator says it has removed 23 entities from the Financial Services Provider Register so far this year.
The former Strategic Planning Group director was facing six SFO charges relating to money stolen between 2010 and 2012.
FMA "leaks like a sieve" says market figure, confidentially.
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