Mavixbtc Gets a Cease and Desist by Missouri Secretary of State Securities Division
As the world steadily becomes more and more aware of cryptocurrencies and their opportunities, fraudulent companies will inevitably rise up. There will always be someone that tries to profit and prey on those who want to make some money.
The latest of these companies appear to Mavixbtc. The Missouri Secretary of State Securities Division has sent out an official Cease-and-Desist letter to the crypto firm.
The St.Louis-based trading firm falsely claimed to be registered to both the Securities Investor Protection Corporation and the Financial Industry Regulation Authority. Coupled with that, the company lazily (Though cleverly) falsely used a registered investment adviser’s register number to attempt to validate their company. On top of this, they offered a staggering 55% in returns in less than a week. This was reportedly in an attempt to garner more customers.
David M. Minnick, the Securities Commissioner, explained that the promise and novelty of an easy, quick profit via cryptocurrencies can always be enticing to prospective investors. However, there are significant risks to this. Scam artists work hard among these non-traditional investments to take money out of an investor’s pockets.
The Division, rather graciously, offered Mavixbtc the chance to make a case for why restitution should not be enacted. Should they not come up with a good enough argument, they will be forced to pay over $30 000 in restitution.
From Missouri to the Queen
Earlier this week, it was revealed that a new phishing scam had popped up within the UK. In this case, a fraudster pretended to be the Queen’s Secretary and asked various individuals for large amounts of money via Bitcoin. This scheme was noteworthy for its smart way to avoid the spam filters of email addresses: It didn’t use emails at all. It was sent via snail mail, albeit with the classic terrible grammar these phishing campaigns are infamous for.
The scam promised a 30% interest rate on whatever money you lent the Queen, and it shows that significant promises of profit are always attractive to investors. As cryptocurrencies slowly break into the mainstream, scammers will use it as a convenient platform to push their agenda and prey upon those that live their lives within the law.
A Fair Warning
All prospective investors of all forms of assets must please be aware that making money is rarely a quick operation, even with something as volatile as Bitcoin. If and when a group or person makes a claim similar to Mavixbtc, please practice due diligence and caution.
As the world slowly accepts Bitcoin, entities like the Security Division will come in to regulate firms. Consult with these regulating firms whenever possible before investing in a specific company. Above all, remember the age-old saying:
If it’s too good to be true, it probably isn’t true.