Financial.Org Closes Investors’ Accounts, Turns Balances Into Useless Cryptocurrency And Ends Up Being A Scam
Financial.org turned out to be a scam, closing all of its clients' accounts and turning all of their balances into their own useless cryptocurrency. One of the most recent scandals is related to a UK-based unregulated company called Financial.org, which has closed all of its investors’ accounts denominated in US dollars and converted the balances to FOIN, its new cryptocurrency.
Without any scruples, the company said in its social media that the only way for customers to activate their new accounts is to invest another $7,000 by the end of July. In addition, they may not remove any FOIN counters until 2019.
The company claims to be dedicated to the education sector and has some 200,000 members. Also claims to be an official partner of Williams Martini Racing. As such, it is managing up to $1 million for investors, most of whom are based in Asia. Over the weekend, the company said it was closing all investors’ accounts to convert the balances to its new token.
However, the company is not licensed to conduct financial transactions. So regulators in the UK, Indonesia, Thailand, the UAE, Malaysia, Singapore, and Laos have added the company to their watch lists and warned potential clients to invest at their own risk.
In a frightening statement, CEO Arnaud Georges said:
“Unhappy investors/members have been rumoured to be considering legal actions. […] Legal litigations will definitely take years with no assurance of success and you may lose the opportunity to cash out/realize your profits during the whole litigation period.”
According to Reuters, a Japanese investor demonstrated that his $9,800 account balance had been transformed into 59 FOINs and could not access to it. But even this is not the worst-case scenario – one Singapore investor showed that his $3,000 balance disappeared without being converted to Financial.org FOIN tokens. Both investors confirmed that they had not received prior notification of the company's intention.
The cryptocurrency world seems to be a great place for scammers. A Wall Street Journal report projected that one-fifth of all the initial coin offering (ICOs) projects are potential scams.