Crypto Broker Exchange ‘CryptoTrader’ Labeled Phoney By Austrian Financial Market Authority
The Austrian Financial Market Authority (FMA) has recently emitted an official warning about a site called CryptoTrader… without actually giving a link to the site, an error that was detected by Finance Magnets, which also reported on this story.
According to reports, this new company is being accused of scamming its clients, which is not very surprising for a company which is called CryptoTrader. If they cannot even find a better name, well, they probably would not be able to find good ways to use the investor’s money.
Scammers Are Appearing Everywhere
CryptoTrader offers crypto brokerage services which are unregulated and possibly a scam. This type of company is taking over as fewer companies are offering contracts for difference, forex and other binary options as scams and focusing now on crypto.
In the past couple of years, a lot of crypto-based or crypto-like scams are popping up everywhere. The phenomenon of Bitcoin and how people got rich overnight was the perfect success story to inspire several scammers around the whole world. Today, you can find scammers using Bitcoin as a buzzword in any country of the globe.
The scam is generally focused on making the victim deposit some cash into the account of the scammers. Sometimes they promise to use auto-trading software, sometimes they have “brokers” which will trade for you, sometimes its mining.
As soon as you give these companies your money, they will sometimes even let you make money for a while, but they always vanish sometime as soon as they got enough money and your cash will be gone with them.
Part of why these companies are prospering with cryptos is not only in using their name but because it is easier to do it for more reasons than hype alone. Cryptos are hard to understand and more anonymous, so convincing people is also easier.
You can make a Bitcoin deposit which is non-refundable and sometimes you will not even know who owns the wallet. As soon as the transfer is made, you lost your money forever and sometimes it can be hard to link an address to a real person if they are savvy in covering their tracks.
Because of all these reasons together it is so easy to pull a crypto scam and actually very profitable. Some people get rich by scamming others and it takes years for the police to actually track and arrest them, which is not even done sometimes.
Unfortunately, they give cryptos a bad rep, but there is not much that the community can do besides denouncing these scammers to keep the market clean of them.