New Zealand Police Warns About Crypto Scam


New Zealand police have issued an alert for the public regarding the alleged cryptocurrency scam after one of the residents has reported losses due to dealing with one of the crypto scheme operators.

26 September 2018 – Police of New Zealand have cautioned the public regarding online scams, according to the Canterbury police. Authorities found out about the fraudsters after an investor lost $320,000 NZD to a fraudulent cryptocurrency investment scheme.

New Zealand Investor Scammed

The unnamed investor made a number of investments in an online cryptocurrency scheme that appeared to be fraudulent. He has been attracted by its “extremely good returns,” according to the police report from the town of Canterbury. 

The report also stated that those returns in “investments in cryptocurrencies, such as bitcoin […] soon began to decline.” Notably, the report does not mention the kind of operation that has been in place. When investments have been suspended by the investor due to the insufficient returns, the scammer tried to contact the investors personally. This move from the fraudster has been aimed at making the investor invest more money via the website.

Senior Sergeant Paul Reeves has commented on the case:

 “Members of the public should seek advice before making any online investments they are unsure of. Scammers are extremely persistent and can seem very credible, as they are highly versed in their trade.”

New Zealand USI-Tech Bitcoin Broker

In addition, the police report concludes with a link to more information regarding the cryptocurrency security. It is known that global regulators are pushing to control the malicious parties and restrict them from manipulating the entry-level investors in the cryptocurrency market. 

Earlier this August, AtoZ Markets reported that the financial regulator of New Zealand, the Financial Markets Authority (FMA) has issued a warning on its website for the investors’ community. The regulator has cautioned investors against dealing with a Bitcoin brokerage that calls itself USI-Tech.

According to the official regulatory note from the Financial Markets Authority in New Zealand, USI – Tech is operating online via https://usitech-int.com/. A visit to the website reveals that the broker is intending to provide investment services to smaller investors to trade in Forex and Bitcoin markets. The company was claiming to offer automated trading software services while attracting traders with “viral results’ promises of profits of up to 150%. 

However, according to the New Zealand watchdog, the company is operating in the country illegally. The regulator noted the following:

“USI-Tech is not registered on the Financial Service Providers Register to provide financial services in New Zealand.”

The regulator further added that it considers the operations of the entity to bear the hallmarks of a scam. Therefore, the New Zealand FMA does not recommend investors to deal with USI-Tech. 

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