In Thailand, the country’s Securities and Exchange Commission (SEC) has warned against a crypto scam known as FX Trading Corporation. Marking yet another example of Ponzi schemes taking advantage of the naivety of crypto investors to defraud them.
To lure investors, FX Trading Corporation is alleging to be authorized by financial watchdogs in Thailand and abroad. However, according to SEC’s Department of Special Investigation spokesperson, Police Lieutenant Colonel Woranan Silam, FX Trading Corporation has not been cleared to trade virtual currencies in Thailand.
According to Silam, only three companies (Bitkub Online Co, Bitcoin Co, Satang Corporation Co) are authorized to operate digital assets businesses in Thailand.
YouTube video reveals Ponzi scheme
In an 18-minute YouTube video uploaded by a Central dos Investimentos, FX Trading Corporation promises a percentage of your friends’ investment if you get them to join in. And that you will earn “residual income” and prizes as you rise up the ranks by inviting more people to invest. These are classic characteristics of a Ponzi scheme.. Additionally, investors are promised a return on investment of 400% within 12 months of their initial investment and a 2.5%profit daily.
To sweeten the deal further for unsuspecting clients, once investors earn the 400%, and as they climb up the levels, they are eligible for gifts such as expensive watches (Rolex Submariner), cars (Lamborghinis and Ferraris), among others. Unfortunately, the gifts only start trickling in once an investor reaches level 6. Moreover, the video shows the Corporations’ website about its founders. However, details remain scanty with their names suggesting that they may be Korean. And when we go to the website shown in the video, the website does not seem to exist.
From the promotional videos, we see that FX Trading Corporation was active in Dubai, South Korea, India, and Brazil, among others.
Interestingly, FX Trading Corporation has also received attention from regulators in other jurisdictions. In January 2019, for example, the Spanish financial watchdog, the Comision Nacional del Mercado de Valores (CNMV), warned Spanish citizens against investing with FX Trading Corporation. CNMV noted that the Corporation was not authorized to operate in the country.