The U.S. Idaho Department of Treasury has warned investors about a series of cryptocurrency scams promising returns of up to 80% every 24 hours with no risk to investors.
Cryptocurrency scams promising high returns
The Idaho Department of Finance announced Wednesday a “series of fraudulent
cryptocurrency schemes targeting Idaho investors.” The regulator detailed:
The companies claim to provide high returns without any risk to the investor.
These fraudulent schemes operate under the names and websites of Crypto FX Direct, Shield Investors Ltd, Quartz FX Trade and Finvest Trading. At the time of writing, the sites of some of the schemes are already down.
The regulator added:
These sites make outrageous, patently false statements and claims, such as guaranteed returns on investments of up to 65% to 80% every 24 hours.
To start investing in these companies, investors must purchase a cryptocurrency investment plan, Finvest told the finance department. One company, Finvest Trading, charges between $500 and $100,000 to start trading.
“They offer lucrative investments with any plan, and claim that the more invested, the greater the return,” the regulator specified, adding that the companies’ investment advisers provide investors with “false certifications.”
At the end of the stipulated trading period, the investment advisers would contact investors and tell them that they had made a significant return on their investment. However, they had to pay a commission to get a return on their investment. Investors were then informed of additional fees and penalties before they could receive payments.
The regulator noted that these entities were not registered to sell securities in Idaho and had not filed with the Idaho Secretary of State to do business in the state.
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