It’s a new day so that unfortunately means that there is a new suspected scam in the financial industry. This Wednesday, the Financial Conduct Authority (FCA) in the United Kingdom has put out a new warning about a suspected scam – Capital Traders.
The FCA has issued its warning against Capital Traders because it is operating within the UK without a license. However, it is performing operations that are required to be authorized by the British regulator.
This is, of course, a loud warning bell. As the FCA puts it: “Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by us. However, some firms act without our authorisation and some knowingly run investment scams.”
Legal Risk Factor Beneath Ripple’s Lawsuit from SECGo to article >>
Therefore, it is safe to say that either Capital Traders is a) a scam, or b) not a scam, but still an entity operating in the UK illegally, which also isn’t great. So who is Capital Traders? Well, according to the FCA warning it is an Estonian-based firm, with the entity claiming its address to be: Tornimae 5 Tallinn 10145, Estonia and Harju maakond, Tallinn, Kesklinna linnaosa, Roosikrantsi tn 2-K.
Taking a look at its website, which can be located at www.capital-traders.com, the company claims to be a “world-leading financial services provider offering a range of investment products in Cryptocurrency.”
Furthermore, the British watchdog also clarifies that Capital Traders is in no way associated with Capital Traders Limited (Companies House No: 09343545), which is a legitimate and FCA-authorised financial firm.
Capital Traders joins the numerous other suspected scams
The warning from the British regulator is the latest on a long scam warning list. It follows on the heels of the FCA calling out Bitcoin FX Option as a clone firm of eToro (UK) Ltd, the British subsidiary of eToro, a social trading brokerage, as Finance Magnates reported yesterday.