Alliance Investment Crypto has been added to a warning list of scam firms by financial regulators in New Zealand. The firm claims that it was operating even before the launch of BTC.
The Warning List
The Financial Market authority in New Zealand often added a scam firm to its warning list and this one is no different. This Friday, they added a firm called Alliance Investment Ltd. The firm says it’s the best company for crypto investment with no real facts to back its claim.
The firm says that it is based in NZ. However, given that the Financial Market authority is adding it to the list, it is probably not registered in the nation. One amusing fact is that this crypto firm claims it was created in 2009. This was a whole year before crypto was created. The first crypto coin, BTC, was created in 2009. It means the firm is lying or it could time travel and see what would happen in future.
According to the regulator, the firm was attempting to position itself as a legit business by using a similar name to Alliance Investments Limited. This is a genuine firm recognized by regulators. They only removed an s to confuse investors.
What the Regulator Said
According to the FMA, the company is not registered or regulated in NZ. They also added that the company made false claims of being related to a real company.
The regulator said that while they did not have evidence it was a scam, there were signs it was. Thus, investors should exercise extreme caution when dealing with the firm.
Upon checking online, one will find that there are no reviews in the firm. This is probably a sign that the company was trying to stay as low as possible to avoid detection.
In the past, most scammers have tried to sell binary options, contracts for difference or forex. However, this has changed in recent times in NZ with a focus being on crypto investment.
They play on people’s desire to get rich fast with crypto. The companies will then get people to deposit their cash with them with a promise of getting it back in just a short while. As with binary options trading, once the money is deposited, the firm will just ignore the investors. With crypto, it is much easier to get away since it has a focus on anonymity.
How to Detect Scams
While this is a good move by the FMA, they may not always detect every scam. Thus, you will need to be vigilant not to lose your money. One way to do this is to know the team. If you cannot find the team listed, it is most likely a scam.
If you find they have listed a major name in the crypto verse, try to find out if it is true. They will have publicized it on Twitter or elsewhere. If that is not so, they are scammers.