The latest report released today indicates the concern of ‘Financial Services Commission (FSC) on ‘growing crypto swindles’. Consequently, one such scam bitcoin venture called ‘The Bitcoin Wealth’ misguided public to participate in the company’s offering.
Fake News Misguiding Investors – Regulators Warn Public
To catch the interest of investors and to pull out large funds, the said firm has fraudulently published an article on another media that claims ‘Barbados’ Ministry of Finance has finalized the deal of acquisition for $500 million with ‘The Bitcoin Wealth’.
The ministry adds that the claim was ‘completely fake’ and there wasn’t any investment as such. The firm is using the name of ministry and inviting investors to invest in its illicit dealings. Beside this, there were many such false outlets that are spread out across other countries by using the names of respective country’s regulators.
Following which, the Financial Service Commission (FSC) sent out the caution notice to Barbadians ‘do not invest’ in this entity because the firm’s offering is a scam. CEO of FSC, Kester Guy advised the public to perform due diligence and to be on ‘their guard’. Moreover, he warned the public to look at the four key aspects before investing in any bitcoin or crypto ventures. Kester Guy points out that:
(1) High returns and low risk,
(2) Access to insider information,
(3) Encouraging you to buy now or act immediately and (4) Is the firm or seller a registered investment seller?
All that said, Often companies strategically attract the general public at large with the ‘best return policies’. Indeed many people get into this scam zone of ‘huge earning opportunities’ on investment. Addressing the similar matter, Kester Guy further added that;
Of course, people want to find opportunities that offer them the best returns on their investments, but we need them to be prudent and exercise good judgment.
Nevertheless, it’s not new in the crypto industry; certainly, Coingape recently reported ‘African regulators cautioned investors against investing in scam bitcoin venture, called KeniCoin’. As such, history recorded various cases, Bitcoin bomb threat, Bitcoin ransom cases, stressing people. On top of that, Kester Guy said in a statement that;
“We are aware that these type of scams will continue to surface from time to time and that with cryptocurrency still being a novel concept to many people, there is a lot of room for misinformation, misunderstanding, and misguidance. As a regulator, we want to protect the public from that, as far as we are able to,”
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com