The finance department of the U.S. state of Idaho has warned investors of a series of cryptocurrency scams promising returns as high as 80% every 24 hours with no risks to investors.
Crypto scams promise high returns
The Idaho Department of Finance announced on Wednesday “a series of frauds
cryptocurrency schemes seen recently targeting Idaho investors. The regulator detailed:
The companies purport to provide high returns with no risks to the investor.
These fraudulent schemes operate under the names and websites of Crypto FX Direct, Shield Investors Ltd., Quartz FX Trade, and Finvest Trading. As of this writing, some of the program websites are already offline.
The regulator added:
These websites make outrageous, demonstrably false statements and claims such as guaranteed returns on investment as high as 65% – 80% every 24 hours.
To start investing with these companies, investors must purchase an investment plan using cryptocurrency, the finance department described. One of the companies, Finvest Trading, charges between $500 and $100,000 to start trading.
“They offer profitable investments with any plan, and purport the more invested, the greater the return,” the regulator detailed, adding that the companies’ investment advisors provide investors with “phony credentials.”
At the end of the agreed trading period, the investment advisers contacted the investors and informed them that they had realized substantial returns on their investments. However, they had to pay a fee to receive their returns. Investors were then informed of additional fees and penalties before they could receive payments.
The regulator noted that these entities are neither registered to sell securities in Idaho nor have they filed with the Idaho Secretary of State to conduct business in the state.
