Manitoba regulator has issued an alert against CrypTrade24, a supposed Bitcoin trading company that claimed it is registered in the Netherlands. The Bitcoin trader allegedly claimed a fake location in Churchill, Manitoba, Canada, which is the more reason the regulator red-flagged the company as possible fraud.
The Bitcoin trader claimed a two-bedroom bungalow address
According to the Manitoba Securities Commission (MSC), the physical location claimed by CrypTrade24 in Churchill was only a two-bedroom bungalow in reality. Further investigation by the regulator claimed that the apartment was never occupied or belonged to the Bitcoin trader.
The building was a provincial government property, which is occasionally occupied by government staff when they visit Churchill for an assignment, according to the report. The government department that owns the house also mentioned that the cryptocurrency company wasn’t actually operating from the said location.
Aside from that, the regulator also pointed out that the Bitcoin trader offers a high return (ROI), more than 100 percent. Noteworthily, this is one thing in common with several fraudulent businesses, as victims are more likely to be enticed with high investment returns. Precisely, the Manitoba regulator explained in the alert:
The firm’s website, cryptrade24.com, promises up to a 200% return on investment (ROI) within 20 days, and boasts it has “…collected the best from the business of investment under a single virtual roof.
High ROI is risky
According to a Senior Investigator with the regulator, Jason Roy, an ROI of 200 percent in nearly three weeks is a “major red flag for fraud. Not to mention, the address had me do a double-take.” More so, the regulator disclosed that the Bitcoin trader wasn’t registered in Manitoba to trade securities. Also, authorities in the Netherlands admitted that CrypTrade24 wasn’t registered in the country either.
I’ve seen many offshore trading firms use fictitious addresses, including a Winnipeg parking lot,” says Roy, “Investors cannot rely on the look of a website to determine if it is legitimate, and they can’t rely on the how nice the person on the other end of the phone is. Investors need to make sure the person they are dealing with is registered to sell investments in Manitoba. It is the number one way to protect against investment fraud.