Arkansas Securities Commissioner Eric Munson entered a Cease-and-Desist Order against MyCapitaltradeFX.com Thursday (Aug. 5) for promoting fraudulent investment plans and using fraudulent means to target Arkansas investors.
In addition to MyCapital, Munson found that several other online platforms were operating a similar scheme. The platforms are: Blinkotrade.com, FidelityFXtrade.com, Climaxcapitalfx.com, BitFX24.net, Digitaltrademine.net, CentralFXmarkets.com, TraderFXpro247.com, and Funditmarkets.com.
The order found that all nine of the above-mentioned platforms were operating illegal schemes to advertise, hype and sell fraudulent cryptocurrency and forex investments.
To accomplish the scheme, the platforms disguised their intentions by offering investors the option to choose between different types of investment plans. The platforms promised that investors would receive high returns without them having to do anything. Additionally, MyCapital utilized a fake online persona to defraud an Arkansas investor into investing money.
The order also found that the nine platforms were claiming to be registered with certain licensing companies when in fact they were not.
“We are seeing a rise in cases where these bad actors are using online platforms to encourage people to start trading in cryptocurrencies,” Munson said. “Investors need to be cautious of the common ‘red flags’ we are seeing associated with these types of scams. Investors should look out for items such as promises of high returns, different level investment plans, and promises by firms to do trading on their behalf.”
Investors are encouraged to investigate before they invest. Investors should contact the Arkansas Securities Department with questions about any investment opportunity or the persons offering it for sale before investing in the product.