The Austrian Financial Market Authority (FMA) on Wednesday issued a warning against Bitcoin Trader, a crypto investment website, informing potential investors that the entity is not allowed to carry out bank transactions.
“Bitcoin Trader is not entitled to carry out banking transactions in Austria that require a license. Therefore the acceptance of funds from other parties for the purpose of management is not allowed pursuant to Article 1 Para. 1 no. 1 first case BWG,” the FMA noted.
According to its website, Bitcoin Trader is “a group dedicated exclusively to people who have bounced off Bitcoin on top of the insane profits, tacitly accumulating a fortune.”
The automated trading platform which runs on its proprietary technology is guaranteeing the investors to earn at least €1,300 (around $1,460) per day by putting an effort for 20 minutes a day on an average.
The website is even claiming that some of its investors earned a million in merely 61 days.
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An MLM for trading crypto
Though Bitcoin Trader does not charge any fee for executing trades or as commission, it is earning money with a multi-level marketing scheme.
“This is similar to MLM, affiliate marketing or anything else. The software is based on an innovative algorithm that wins trades with an accuracy of 99.4%,” the platform noted.
Per the website of the platform, it was founded by two university students – Jeff and Mike. However, no other details about the founders were mentioned, even the name of the university was not mentioned.
“…provided that said person has given cause for such action and informing the general public is deemed necessary and reasonable with regard to possible disadvantages of the person concerned,” the warning statement added.
The Austrian market watchdog is actively flagging unauthorized investment platforms. Yesterday, the FMA published a warning against Universe Markets for operating within the country without proper permission.