New Brunswick (September 25, 2019) – New Brunswick’s Financial commission joins the warnings issued by international regulators and the Manitoba Securities Commission against 4XFX and Coinbrokerz which claimed to offer investment opportunities in bitcoin along with other crypto assets and commodities. Neither of the companies has been registered to trade securities or derivatives in the province. Their websites are no longer accessible. The commission recommends being cautious investing in high-risk crypto assets.
The Financial and Consumer Services Commission of New Brunswick (FCNB) cautions in a press release on September 20 against high-risk crypto asset investments. ‘Due to their very nature, crypto assets are fertile ground for fraud’, the commission warns. By issuing the warning, the FCNB joined international regulators as well as the Manitoba Securities Commission.
The regulator pointed out that companies who sell investments in the province must be registered with the commission. Canadians have fallen victim to 4XFX and Coinbrokerz. These were companies that claimed to operate a bitcoin trading investment platform including crypto assets and commodities.
Neither company has ever registered to trade securities or derivatives in the province according to the commission which indicates fraudulent activities. 4XFX claimed to be located in Estonia and that it operated from Germany. But, they were not licensed in either of those countries. The websites of both companies are no longer accessible and the unlicensed brokers are now out of business.
The commission advises people who are solicited to buy or trade crypto assets to always check if the broker is registered and research the company on the internet before investing. Furthermore, they strongly advise against providing personal information or sending money out of Canada. The commission recommends being cautious when investing in high-risk crypto assets: ‘If you do not understand the technology, stay away.’
Marina Burghard writes for Canadian Fraud News about fraud-related cases, whistleblower, jurisdiction, identity theft, consumer protection, etc. – essentially about scams and how to protect yourself against this kind of fraudulent criminal behavior. She holds a Master’s degree in Political Science where her interest in criminology grew. Besides fraud, Marina’s scientific interest lies in terrorism, extremism and how to deal with it as a society.