Caution Advised Around Cryptocurrency Investment Schemes
Police are reminding potential investors to be wary
following numerous
reports in recent weeks of people
falling victim to a cryptocurrency
investment
scams.
Detective Sergeant James Robson, of the
Auckland City Financial Crime Unit,
says Police have been
assessing reports involving a company calling
itself
“Quwiex Limited” that was promising victims
high daily returns through
their platform.
“This
company was registered in New Zealand in late September 2021
through
information which has now been established as
falsified,” says Detective
Sergeant
Robson.
Police have made enquiries into the supposed
director of this company,
including a supplied New
Zealand address.
“Unfortunately, the identity
documents are fake and there is no connection
to the
address supplied,” says Detective Sergeant
Robson.
“No actual links to New Zealand have been
able to be identified, which
means those involved in this
scam are based offshore.”
Detective Sergeant Robson
says the victims have unwittingly become involved
in a
scheme that bears all the hallmarks of a Ponzi
scheme.
A Ponzi scheme is a fraudulent investment
scheme in which the operator pays
returns on investments
derived from new investors, rather than from
legitimate
investment profits.
“In the case of ‘Quwiex
Limited’ victims initially received interest
accruals
on their investment and were able to withdraw
funds.
“In mid-April, this scheme suspended
withdraws citing a website upgrade.
However, the website
was deactivated on the date the upgrade was supposed
to
be complete.”
Investors’ funds had disappeared.
“Police acknowledge the financial
distress falling victim to one of these
schemes can
cause,” says Detective Sergeant
Robson.
“Unfortunately, as these scammers are based
offshore the likelihood of
recovering their losses are
quite low.”
Police are advising victims of the scam
not to engage with companies or
persons offering the
prospect of recovering their funds.
“In our
experience these services, which requires victims to pay,
have not
achieved any positive results.”
Police
continue to advise prospective investors to be vigilant to
potential
scams. The Financial Markets Authority provides
helpful advice on its website
to help avoid falling
victim to online investments scams.
It also has advice
on what to do if you are in the unfortunate position
of
becoming a victim of such a scam. Please visit https://www.fma.govt.nz
for
more
information.
ENDS
Issued by Police Media Centre
You can also view this release,
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Police app [1]
or at:
https://www.police.govt.nz/news/release/caution-advised-around-cryptocurrency-investment-schemes
[2]