New Zealand's Regulatory Authority Issues Warning Over Duplicate Cryptocurrency Exchange

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March 27, 2024 06:43 EDT

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The Financial Markets Authority of New Zealand has issued a warning regarding an illegitimate crypto exchange imitating the licensed BTCSWE. This fraudulent entity has been reportedly reaching out to people, offering fraudulent services to help recover funds from previous unsuccessful investments.

The regulatory body identified two bogus operations on Wednesday, specifically naming BTCSWE and Grandeur Capital Pro as the culprits.

The legitimate BTCSWE exchange confirmed its identity had been co-opted in what appears to be a larger scam attempting to exploit individuals by posing as asset recovery experts.

The FMA’s advisory specifies that the counterfeit exchange provided victims with falsified documentation, leading them to believe in the imposters’ credibility. To purportedly reclaim their lost funds, victims were coaxed into paying fees over a series of months.

Additionally, the scam artists recommended installing the “anydesk” software, a tool that enables remote access, thus compromising victims’ digital security.

“Significant funds were lost as this software granted the scammers access to various passwords.”

Subjects who have already been persuaded to install such remote access software have been urged by the FMA to immediately contact an IT expert.

The FMA also noted the fraudulent activities of Grandeur Capital Pro, which falsely claimed to operate in New Zealand.

“We believe Grandeur Capital does not operate from the New Zealand location as claimed, nor from any address within New Zealand,” stated the FMA’s alert. “The information on their website regarding registration and licensing appears to be fabricated.”

Prevalence of Crypto in New Zealand Draws More Scams

Statista projects that New Zealand’s crypto market revenue could hit $102.2 million in 2024, signaling a growing adoption of cryptocurrency among New Zealanders in the coming years.

With this increase in crypto activity, the Reserve Bank of New Zealand has announced more stringent oversight of the sector.

Prior FMA warnings have detailed scams by Krypto Security and Bay Exchange, which have been contacting New Zealanders with offers of unauthorized crypto services, despite not having FMA regulation.

The New Zealand House of Representatives conducted comprehensive reviews around the risks of incorporating cryptocurrency into the national payment infrastructure.

Governor Adrian Orr of the New Zealand central bank recently voiced concerns over the reliability of digital currencies, specifically criticizing stablecoins.

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