26 March, 2020 | AtoZ Markets – A coronavirus pandemic may plague the world. But Canadian regulators continue to monitor cryptocurrency scams. The regulator is cracking down on two cryptocurrency scams. The Manitoba Securities Commission (MSC) has issued a public warning against crypto scams after reports of fraud involving two European companies.
Canadian Regulator Exposes Crypto Scam
MSC issues investor alert regarding Jbcapitals and Halifax & Associates for defrauding a rural Manitoban over $ 8,000. The two companies are affiliated with each other and operate mainly in Switzerland and Denmark.
Jbcapitals operates a trading platform that would offer more than 200 assets, ranging from digital currencies and stocks to indices and commodities. On its website, it also claims to offer leverage of up to 300: 1. However, it claims to be based in Zug, Switzerland.
Jbcapitals owned and operated by Storm Complex Limited, a company that has been linked to other scams in the foreign exchange market. The company also operates Xcoinbroker and Mcoinmarket, two known scams on the foreign exchange market.
MSC investigations have revealed that the business has been in existence for less than a year. Despite this, it also claims to have long experience in the securities market.
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Crypto Scammers Target Victims on Facebook
Jason Roy, an MSC Senior investigator, said that a Facebook ad for Jbcapitals lured the victim. The company, Jbcapitals, claimed to invest in the bitcoin and crypto markets on behalf of its customers with an "85% success rate. However, the victim was never able to recover its initial investment or its alleged returns on investment. The MSC also warns investors against red flags that suggest fraud. These signals are as follows:
- The promise of high returns or inside information, and
- Often pressure investors to make decisions quickly.
The promised returns in the cryptocurrency investment should always be questioned and are never real. It is a tell-tale sign that you are dealing with fraud. So it would be best to report these cases to the authorities so that those responsible can be prosecuted.
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