British Columbia Securities Commission Adds CBE HYIP to Investment Caution List
While there are many legitimate investments that could be made in the crypto space that offer good returns, there are also fraudulent offers that prey on individuals’ lack of information regarding the crypto industry and offer bogus amounts as returns on investments.
This was the case with Canada Bitcoin Exchange Inc which was recently added to the British Columbia Securities Commission’s Investment Caution List.
The Investment Caution List is a resource the lets individuals know what firms to be cautious about doing business with and which firms have been known to engage in shady practices.
On the List
Canada Bitcoin Exchange Inc was added to the caution list because they have been known to make very unrealistic claims to investors about their possible return on investment. According to their website, they offer four different investment packages.
The returns on these investment packages range from 3,586% to 7,985. Even more amazing is the fact that they promise the return on investment between 24 and 48 hours. It is also suspicious that the website of the firm does not provide any proof of licenses from any jurisdiction.
From all the information gathered, Canadian Bitcoin Exchange has the markings of a HYIP scheme in which bogus claims are made regarding the amount of money that can be made, investor funds and collected and the business folds up or disappears without the funds ever being returned. Investors have thus been warned to stay clear of the firm or deal with them at their own risk.
An Industry Affair
The Information given by the British Columbia Securities Commission went on to outline some the risks associated with crypto asset trading and also pointed out that while some trading activities regarding crypto are legal and regulated, it does not account for all activities in the industry.
It is also interesting to note that the firm’s investment packages should have been a dead giveaway as to the lack of authenticity. Any investor who has even a little bit of experience knows that a return rate in the thousands is unrealistic and is a sign that the company behind it is false. This has been dispelled several times in the mainstream investment market.
However, the crypto market is newer and there is less Information about it. For many, their only exposure to crypto is hearing about how some of the earliest investors made millions from it, which would make them more responsive to such claims.