In recent days, five sites promising cryptocurrency investments to people have been ordered to stop, as authorities have escalated their escalation with industry fraud.
These platforms were made public by the Consumer Protection Authority of the State of New Jersey, in the United States. The action then targeted the activities of the companies “Bulk Investments”, “Forte Trade Limited”, “Dilna Investments Ltd”, “RealBitcore Mining” and “FileFxOption”.
In recent months, the rise of Bitcoin against the Dollar has already led to a movement of 112% appreciation of the digital currency, which certainly attracted blows to the sector.
Five cryptocurrency investment sites receive immediate stop order
Accused of operating financial fraud against cryptocurrency investors, five sites were targeted by the New Jersey Bureau of Securities, kind of state procon.
To get the attention of investors, companies employed a variety of tactics common in investment scams. Among the cases are high promises of profits, false positive customer opinions and little transparency of who is behind the operations.
None of these companies mentioned have registration to operate investments in cryptocurrencies in the state, which also attracted the attention of authorities.
The knowledge about the fraudulent businesses came from the denunciation of three clients, who got to know the companies and invested their savings in the schemes. The loss of these three investors alone is around US$ 90 thousand, which would give half a million reais in the dollar rate today.
According to interim attorney general Bruck, the scammers are exploiting the public’s interest in this sector, creating false investment platforms. he promises
“Online scammers are exploiting public interest in cryptocurrency investment opportunities. But we are fighting back. Our Bureau of Securities holds those who try to rob New Jersey investors and we will continue to work to protect our state’s residents from scams and fraud.”
“Bulk Investments”, for example, presented investment plans with returns of 100% of the money invested in just 3 days. So one investor put $74,000 on that platform, never seeing his money again.
These totally false investment options were only discovered when clients tried to withdraw their funds, including the promised interest, at which point the fraud was revealed.
“Investigate before investing, then it’s no use”
For New Jersey “Procon” agents, investors should seek to know the fundamentals of a platform before placing funds there.
To Christopher W. Gerold, Head of Bureau of SecuritiesHowever, the more knowledgeable investors are, the less risk they have of falling into scams like these, especially in a new market like cryptocurrency.
“Our actions today are a reminder to investors that the time to investigate a cryptocurrency-related investment is before you hand over your money. Unfortunately, when these investors realized the truth about these fake platforms, their investments were gone.”