Authorities in Canada have issued a warning, saying a cryptocurrency trading website is actually a fraudulent operation.
The warning was issued by the Manitoba Securities Commission over the CrypTrade24 website and company.
Cryptocurrency scam in northern Canada
The website follows the usual cryptocurrency scam is offering massive returns on one’s investment in a short time. The website promises users will get a 200% return within a mere 20 days after investing in Bitcoin and other cryptocurrencies.
Needless to say, such an offer is a definite warning sign. Manitoba Securities Commission senior investigator Jason Roy said, “A 200 per cent ROI [return-on-investment] in 20 days is a major red flag for fraud.”
Another red flag for CrypTrade24 was its physical address. It listed an address in the town of Churchill, as well as claiming registration in the Netherlands. However, investigators found that the address is that of a two-bedroom home owned by a Manitoba government agency. The home is used as a residence for government officials staying in the small town.
The Manitoba Securities Commission issued the following statement concerning CrypTrade24:
“CrypTrade24 is not, and never has been, registered to trade in securities in Manitoba. Staff of the Dutch Authority for the Financial Markets (AFM) have confirmed the company is not registered in the Netherlands either.”
Roy added that Churchill is not the best location to base a cryptocurrency business. The town is known as the “Polar Bear Capital of the World” and has a population of only 899 people. The closest settlement of a decent size is Thompson, which is 400 km away. The provincial capital of Manitoba, Winnipeg, is 1,000 km away.
Crypto crime on the rise in Latin America
Central and South America are regions that are seeing an increase in cryptocurrency-related crime.
In Mexico, public confidence in cloud services has plummeted due to cyberattacks. 70% of Mexican organizations use the public cloud, and an eye-watering 74% of those organizations report suffering a security incident.
Ransomware is on the rise across the region, with Colombia being the epicenter. 30% of all ransomware attacks in Latin America target Colombia. Peru accounts for 16% of such attacks, followed by Mexico (14%), Brazil (11%), and Argentina (9%).