The Manitoba Securities Commission (MSC), a Canadian provincial regulator, has issued an investor alert on two European crypto firms after a rural Manitoban has been defrauded of over $8,000.
Last week, the regulator accused Jbcapitals and Halifax & Associates, which offer clients a range of financial services, of promising returns and scamming customers. The two firms are reportedly affiliated with each other and primarily operate in Switzerland and Denmark.
Senior MSC investigator Jason Roy stated that the victim in this fraud became involved with a company via a Facebook advertisement.
“The company, Jbcapitals claimed to invest in bitcoin/cryptocurrency markets on behalf of their clients with an “85% success rate”, but the victim was never able to recover any of his initial investment or supposed returns,” Roy said.
According to the MSC, while fraud is not a new concept, the methods used by scammers are constantly evolving to adapt to new situations and technology, such as cryptocurrency. The regulator warns investors to look out for red flags that suggest fraud, including promises of high returns with low risk, pressure to invest quickly, insider information, offers from complete strangers, unregistered salespeople and inconsistent details.
The MSC advised the public to contact the regulator if they believe they have been targeted by any type of investment fraud attempt.
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