Warning in Saskatchewan issued about Bitcoin trader
REGINA -- The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) is alerting the public about a Bitcoin trading company that could be undertaking fraudulent activities.
The company, CrypTrade24, promises up to 200 per cent return on investment within 20 days, which the FCAA said is a red flag for fraud.
“A guarantee of high investment returns with little or no risk is a key indicator of a fraudulent investment,” said FCAA Director of Enforcement Harvey White, in a news release. “It’s important for investors to practice due diligence. You should always check to see if the person or company offering the investment is registered.”
CrypTrade24 claims to be registered in the Netherlands and says it’s operating in Manitoba, but the Manitoba Securities Commission has found that the company doesn’t operate in the province and isn’t registered in the Netherlands.
The company is not registered in Saskatchewan, the FCAA said. Individuals or companies need to be registered with the FCAA in order to sell securities or deliveries in the province.
The Canadian Securities Administrators’ National Registration is a free tool that investors can use to check registrations, the FCAA said.
Here are some red flags that may indicate the investment is fraudulent:
- Guarantee of little or no risk, and high investment returns.
- Companies are not registered with the FCAA.
- High-pressure sales tactics to invest quickly.
- Secret or “insider” information with limited time offers.
- Offers from complete strangers.