CryptoTrader Flagged by Austrian Financial Market Authority
- The firm has likely been providing phoney crypto brokerage services
This Friday, the Austrian Financial Market Authority (FMA) took to the world wide web to warn us poor plebs about the dangers posed by CryptoTrader.
As the regulator did not link to the website belonging to the firm, it's difficult to know exactly what the company does.
But, if past experience is anything to go by, it's probably some sort of scam cryptocurrency brokerage.
Such firms have been popping up with increasing regularity over the past couple of years, replacing the now less popular binary options firms that exploded onto the web at the start of this decade.
As with binary options, contracts for difference or foreign exchange scammers, cryptocurrency fraudsters start by convincing you to deposit cash.
Once that's done, they'll then let you trade for a bit - perhaps even let you make some money - and then, once you try to withdraw funds, they'll disappear with your cash forever.
Anonymity
Cryptocurrency makes this ruse much easier to pull off.
The reason for this is that most Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term operate using some sort of anonymous system. For instance, I could transfer Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term to someone and not have any idea who they are.
Once the transfer is made, there is also very little I can do to figure out who the person is because their bitcoin address isn't likely to be connected to a real life person.
Given this state of affairs, it's unlikely that we'll see a slowdown in the number of dodgy cryptocurrency brokers operating online. That being said, the downturn in the cryptocurrency market may help slow them down.
In the meantime, expect to see a lot more CryptoTraders pop up on the FMA website's warning page.
This Friday, the Austrian Financial Market Authority (FMA) took to the world wide web to warn us poor plebs about the dangers posed by CryptoTrader.
As the regulator did not link to the website belonging to the firm, it's difficult to know exactly what the company does.
But, if past experience is anything to go by, it's probably some sort of scam cryptocurrency brokerage.
Such firms have been popping up with increasing regularity over the past couple of years, replacing the now less popular binary options firms that exploded onto the web at the start of this decade.
As with binary options, contracts for difference or foreign exchange scammers, cryptocurrency fraudsters start by convincing you to deposit cash.
Once that's done, they'll then let you trade for a bit - perhaps even let you make some money - and then, once you try to withdraw funds, they'll disappear with your cash forever.
Anonymity
Cryptocurrency makes this ruse much easier to pull off.
The reason for this is that most Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term operate using some sort of anonymous system. For instance, I could transfer Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term to someone and not have any idea who they are.
Once the transfer is made, there is also very little I can do to figure out who the person is because their bitcoin address isn't likely to be connected to a real life person.
Given this state of affairs, it's unlikely that we'll see a slowdown in the number of dodgy cryptocurrency brokers operating online. That being said, the downturn in the cryptocurrency market may help slow them down.
In the meantime, expect to see a lot more CryptoTraders pop up on the FMA website's warning page.