Financial Conduct Authority Flags Crypto Firm AGM Invest, Warns About Fake Clone Companies
- FCA flags crypto company AGM Invest since it is considered a clone firm.
- Regulatory agencies have registered a large number of scams in the crypto market.
FCA Flags AGM Invest
The Financial Conduct Authority (FCA) published a statement on its website in which they warn against AGM Invest. According to the regulatory agency, AGM Invest could be a clone firm that copies that details of a legitimate fir to attract investors.
The cryptocurrency market is plagued with scammers and fraudulent companies that want to steal users’ funds. In this case, FCA considers that AGM Invest is a clone company that pretends to be a legitimate firm. They are copying another company in order to attract investors making them think it is an actual and real business.
These clone firms are a large problem in the foreign exchange (forex) and the crypto sectors. According to Finance Magnates, Tickmill, Dukascopy Bank and ICAP have already been copied and cloned by fraudulent parties.
UK's Financial Regulator Warns Crypto Investors Regarding Numerous Crypto-Related Scams
According to the U.K. regulatory agency, AGM Invest is a cloned company of AGM Financial Services Ltd, that offers insurance services to residents in the United Kingdom. The clone firm operates with the website http://agm-invest.com and it offers cryptocurrency trading services.
The clone firm wrote about itself:
“AGM Group is a retail FX broker incorporated in Belize and licensed by IFSC. AGM Group is created to provide low-cost trading solutions to retail FX traders. AGM Group integrates new technology and high-quality services, and aims to be transparent, efficient and automatic in nature.”
There have been different financial scams in the cryptocurrency market in the past. The cryptocurrency exchange Binance lost more than 7,000 BTC in a hack that it experienced a few months ago. This is something that affected not only the company but also the whole market.
According to the FCA, they have received reports of 1,834 scam companies and sites, which represents an increase of four times the same number of scams registered twelve months ago. Moreover, the Autorité des marchés financiers (AMF) said that the number of scammers skyrocketed in 2018.