Shortly after the UK’s financial watchdog issued a consumer warning against the FTX crypto exchange, Sam Bankman-Fried, CEO and founder of the platform, took to Twitter to warn them about the fraudster’s activities.
The CEO has alerted the community to a fraudulent phone impersonating FTX in the UK.
In a statement posted on the FCA website the day before, knowledgeable customersthat FTX was suspected of operating in the country without a proper licence.
“We believe this company provides financial services or products in the UK without our permission. All companies and individuals offering, promoting or selling financial services or products in the UK must be licensed or registered with us. This company is not approved by us and is targeted at people in the United Kingdom.
In its statement, the financial authority warned users that if things go wrong, They are not protected by the Financial Services Compensation Scheme (FSCS) and are unlikely to get their money back.
A spokesperson for the crypto firm, Sam Bankman-Fried, said they are investigating the matter. It turns out that there are also three suspicious phone numbers associated with FTX. They found that all of them It has been reported as a scam multiple times In many online phone directories.
“This call is a scam for a refund” Inform the caller ID user website. “Call me today […] to get a refund and were told to log into the computer and download an app. I rejected them and pressed the call….”
Several comments about the scam can be read on the website:
Don’t be fooled
Other reports indicate that scammers have targeted their bitcoins – some have already lost their money. According to a user, scammers called Nicholas J. Martin and John S. Spencer from a company called AML (Anti-Money Laundering) contacted them. They said they could help recover money already stolen by other scammers “a similar amount [BTC-ben] By spending it to prove the legality of the transaction to the blockchain.” They said that the “algorithm” would then return the funds to the target. Scammers are supposed to request private information from the target in order to seize bitcoin. Don’t be naive, it is very suspicious that someone appears out of nowhere. And he gives us (financial) help. Always make sure you know who the person on the other end of the line is. Otherwise, don’t fall in love with them and definitely don’t follow their instructions.
Crypto.com has already received the permission
While FTX faces a similar lawsuit with authority such as last year Binance rival platform Crypto.com recently managed to become one of the few crypto service platforms licensed to operate in the UK. Registration enables Crypto.com to offer a range of products and services to UK customers that comply with local regulations and AML/CFT rules.
In fact, FTX is also licensed
FTX Europe was recently authorized by the Cyprus Securities and Exchange Commission (CySEC) to do business as a Cyprus Investment Firm (CIF). This way you can become the owner of the local company that you bought earlier.
The statement pointed out that FTX EU with the license of the Cypriot investment company It can serve the whole European Economic Area. As the world’s fully-licensed MiFID II cryptocurrency exchange platform, which is held under much higher requirements than regional registrations as a crypto asset service provider, FTX has been able to offer a full range of exchange services. Aside from the Cypriot licensing, FCA’s control over the company’s activities is increasingly divided. FTX’s sister company, Alameda “They were able to take advantage of a regulatory loophole that allowed them to trade and profit from cryptocurrencies without having to follow the same rules as traditional financial institutions” – expert thought.
