Financial commission cautions against investing in high-risk crypto assets
A New Brunswick resident lost money to a company claiming to operate from Germany
The province's Financial and Consumer Services Commission has issued a warning about high-risk crypto asset investing after a New Brunswick resident lost money to a company called 4XFX.net.
The company claims to operate a bitcoin trading investment platform from Germany.
On its website, the commission said the victim had also been also approached by a company called Coinbrokerz that was "operating a similar scam."
While these companies make claims to offer investment opportunities in bitcoin along with other crypto assets and commodities, their websites are no longer operational.
A warning about 4XFX.net was also issued by the Manitoba Securities Commission after a Winnipeg resident suffered a loss.
The New Brunswick commission said neither company has ever registered to trade securities or derivatives in the province. The commission warns residents to avoid engaging with these companies.
There have also been warnings by international regulators.
The commission says the risks associated with products based on crypto assets include the potential for fraud.
Anyone solicited to buy or trade crypto assets are advised to check to see if the company is registered with the commission. They should also do an internet search about the company to see if it has been subject to any disciplinary action.
The commission says never to send money out of Canada. "If you do not understand the technology, stay away."