Alliance Capital Comes Under Fire by FINMA as Swiss Authority Takes Aim at Crypto Scam Artists

Alliance Capital Comes Under Fire By FINMA

Cryptocurrency scams and bitcoin rip-offs are on the rampant throughout the internet. If you choose one of these fraudulent investment opportunities, you could easily lose large amounts of money, with most of it not being protected if you would have invested in protected financial services. Hence, crypto investors should always be very keen on evaluating possible investments to ensure that they are not getting duped.

Last week, Switzerland’s authority board that supervises the financial markets, FINMA added a new crypto company to its long list of fraudulent companies. The company, known as Alliance Capitals, offers a wide range of crypto products to prospective clients. Some of these rip-off products include binary options along with crypto trading solutions.

The trouble is that the Alliance Capitals products are quite vague and there is no clear process to how clients can gain access to their chosen products. The reason is that the services seem to be hosted on other third-party websites and are, therefore, not part of the company. Nevertheless, it is also likely that all those third-party websites linked to Alliance Capital are managed by the people managing the firm.

The crypto company also claims to have its headquarters in Zurich, Switzerland. Even though that location is yet to be verified, it is most likely a phony address that is just meant to attract more clients due to the prestige of the area. All these tricks are designed to help the company get money from investor’s wallets into their broker website.

FINMA Goes After Scammers In The Crypto Industry

Despite having a very short history, the cryptocurrency sector already has a wide range of scams. Numerous fraudsters are launching their fraudulent crypto products and companies to capitalize on the ongoing cryptocurrency boom. Some of the main features of these scams include promises of guaranteed high returns, heavy marketing of offers and unusual trading packages among others.

The most famous crypto scam so far has been the ICO scam, which involved setting up funding for a worthless virtual coin before later running off with the investor’s cash. However, some of these scams are more complex. For example, some computer experts discovered how they can hijack a person’s computing power as they browsed certain websites, to mine specific altcoins.

With a fraudulent company like Alliance Capital, the main aim is to appear like an honest broker firm. However, as soon as investors pile up and invest their money, then they close up shop and leave their clients with nothing.

Conclusion

All crypto investors should take heed of FINMA’s warning. Before you send money from your crypto wallet and into any broker website, ensure that you have done enough research into the company to avoid getting scammed.