Luxembourg’s financial industry regulator has issued a warning against an unregistered cryptocurrency trading and investment platform. The firm claims to offer investment options in over 100 crypto pairs from the European country.
In its statement, the Commission de Surveillance du Secteur Financier (CSSF) stated, “The Commission de Surveillance du Secteur Financier (CSSF) warns the public of the website www.crypto-bull.io where an entity, which claims to be established at 2, place de Paris, 2314 Luxembourg, offers investment and trading services under the name of Crypto Bull.”
The regulator made it clear that it hasn’t licensed the company to “provide investment services or other financial services in or from Luxembourg.”
Crypto Bull claims to provide an easy-to-use investment platform that caters to bother the novice and professional traders. It purportedly capitalizes on the latest technology to provide “a modern platform for trading innovative assets, instant execution of transactions and secure storage of investors’ funds.”
On its website, the company proves to be targeting three key markets – Russia, Spain and the U.K., with the phone numbers provided being registered in the three countries.
Crypto Bull has been accused of being a scam by a number of traders on online forums. Others have labeled it a Ponzi scheme, alleging that it uses money raised from new investors to pay off earlier investors. One outlet claims that this isn’t the first time that authorities have raised suspicions regarding the company, claiming, “Unfortunately the website is virtually anonymous and recently has come into the spotlight of both the Spanish financial regulator and the regulatory authorities in Italy for targeting EU customers without proper authorization and possibly running a scam.”
It is important to note, however, that the CSSF has only cautioned investors because the company isn’t registered, not because it is a scam.
The CSSF has continued to alert the public of the scam crypto companies in the country. Last year, it issued a warning against Bit-Bay, a clone of the crypto payments’ processor Bitpay. The clone claimed to have the highest trading volume in Japan among other things. It stated on its website that it was based in 14 rue Erasme in Luxembourg City, an address that belongs to the House of Entrepreneurship.
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