Released on July 29, 2020
The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) is alerting the public about CrypTrade24, a cryptocurrency exchange claiming to be registered in the Netherlands and operating from an address in Manitoba. The Manitoba Securities Commission has conducted an investigation and concluded that the company is not registered in the Netherlands and does not operate from an address in Manitoba.
The company’s website, https://cryptrade24.com/, promises up to a 200 per cent return on investment (ROI) within 20 days which is a red flag for fraud. CrypTrade24 is currently the subject of Investor Alerts issued in several other Canadian provinces.
CrypTrade24 is not registered in Saskatchewan. Individuals or companies need to be registered with the FCAA in order to sell securities or derivatives in Saskatchewan.
“A guarantee of high investment returns with little or no risk is a key indicator of a fraudulent investment,” FCAA Director of Enforcement Harvey White said. “It’s important for investors to practice due diligence. You should always check to see if the person or company offering the investment is registered. The Canadian Securities Administrators’ National Registration Search (https://www.securities-administrators.ca/nrs/nrsearchprep.aspx) is a free tool that investors can use to check registrations.”
Here are some red flags that may indicate the investment is fraudulent:
- guarantee of little or no risk, and high investment returns
- companies are not registered with the FCAA
- high-pressure sales tactics to invest quickly
- secret or “insider” information with limited time offers
- offers from complete strangers
- inconsistent details, avoiding questions and no paper trail
Tips to protect yourself:
If you have invested with CrypTrade24 or any investment that may be fraudulent, contact the FCAA’s Securities Division at 306-787-5936.
For more information about scams and how to spot red flags visit https://fcaa.gov.sk.ca/consumers-investors-pension-plan-members/investors/investment-fraud.
For more information, contact:
Financial and Consumer Affairs Authority