The crypto world has become fraught with scams, promises of huge returns, and viruses that allow hackers to steal crypto assets. This is why many government regulators across the globe are warning their citizens against these kinds of fraudulent activities. The Malta Financial Services Authority (MFSA) took the dramatic step on July 23 of warning citizens to stay away from Emirate Coin Tech, believing that the cryptocurrency investment broker is likely a Ponzi scheme.
The official warning was provided in a press release and explained that the MFSA has not provided any kind of licensure for Emirate Coin Tech to operate within the country. The statement explained, “The MFSA wishes to alert the public, in Malta and abroad, that Emirate Coin Tech is NOT a Maltese registered Company NOR licensed or otherwise authorized by the MFSA to provide any investment, cryptocurrency or other financial services which are required to be licensed or otherwise authorized under Maltese law.”
Emirate Coin Tech has made some pretty gaudy claims on their website. According to the site, they began operations in 2013 and have become the fastest-growing investment and brokerage company. Located in Amsterdam, the Netherlands, ECT has lured investors with a promise of a 25% return on their investment each week.
Those are the kinds of claims that will draw eager beavers looking to make a fast buck, but will also draw the watchful eye of regulators who are skeptical of such get rich quick schemes. That appears to be the case with the MFSA, who warned investors to stay away from the site.
These kinds of Ponzi schemes are becoming commonplace in the cryptocurrency world. Just in the last three weeks alone, investors in Venezuela, China, and South Africa were looking to take legal action after they had lost assets fraudulently.
In Venezuela, investors are suing Argyle Coin for $30 million after the company claimed that they had enough diamonds in reserve to be able to back any potential losses that investors may have incurred.
Often, investors lose their money. That is the case in South Africa, where Bitcoin Wallet has told investors that they are unable to pay back the money that was invested with the firm. It is a circumstance like this that has the MFSA taking steps now to try to prevent investors from being tricked by Emirate Coin Tech.
It should be noted that while there is a reason to be skeptical of the claims of the company, no actual law enforcement agency or regulatory agency has proven that the company is a scam. It truly is buyer beware.
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