The New Zealand Financial Markets Authority added three allegedly fraudulent projects to its “warning list” for investors, according to Crypto Globe. This time, the authorities called on the public to stay away from companies Cryptogain, Russ Horn and Zend Trade.
These startups have been included in the “Suspected Scam” section. The regulator comments: “We believe that there are signs of fraud in the activities of these companies or people. We strongly advise you not to deal with them. ” The full blacklist can be found here.
CryptoGain reminds BitConnect fraudulent project, promising investors a huge daily profit. The site CryptoGainLimited.com promise 2.6% per day. In addition, the company offers cloud mining packages (with a weekly yield of 30%) and a retirement plan (according to which, after retirement, the user receives 30% of the profits).
Such high profits cannot seem to be suspicious, not to mention the proposal of cloud mining, which is now considered in the United States as an unregistered security. In addition, FMA considers CryptoGain itself a fake. There is a registered company CryptoGainLimited, but it is not affiliated with CryptoGain.
Russ Horn offers as a gift a certain book “for free plus shipping charges.” Also on the project website, there are questionable materials with titles like “How to legally deceive forex markets and fill your pockets with cash”. Working under the same company, ForexEquinox offers a system that “can double the amount of user funds every 30 days”.
Zend Trade was suspected of fraud after it became clear that the company did not return funds to customers. Unlike ForexEquinox, which “trains” people in trading, ZendTrade offers “brokerage account services”. This means that the company stores the client’s funds and carries out trading for it. Such a “brokerage service” is more like a hedge fund.
According to FMA experts, Zend Trade is also associated with Russ Horn.