New Zealand Police investigate allegedly fraudulent crypto platform Quwiex
The AuckÂland City FinanÂcial Crime Unit is invesÂtiÂgatÂing Quwiex LimÂitÂed, a self-proÂclaimed crypÂto platÂform, after mulÂtiÂple reports from vicÂtims that the platÂform is a scam, accordÂing to an RNZ report.
Quwiex registered in New Zealand with false information
SusÂpiÂcions about the platÂform began to rise in April when it first susÂpendÂed withÂdrawals because it wantÂed to upgrade its webÂsite. HowÂevÂer, the webÂsite was deacÂtiÂvatÂed on the day the upgrade was completed.
This means that all investors’ funds disÂapÂpeared with the deactivation.
Police invesÂtiÂgaÂtion into Quwiex revealed that the platÂform had regÂisÂtered in New Zealand in SepÂtemÂber 2021, but it appears that all of the inforÂmaÂtion used for its regÂisÂtraÂtions were false.
SpeakÂing on the issue, DetecÂtive Sergeant James RobÂson said,
“UnforÂtuÂnateÂly, the idenÂtiÂty docÂuÂments are fake, and there is no conÂnecÂtion to the address supÂplied. No actuÂal links to New Zealand have been able to be idenÂtiÂfied, which means those involved in this scam are based offÂshore. UnforÂtuÂnateÂly, as the peoÂple behind these scamÂmers are based offÂshore, the likeÂliÂhood of recovÂerÂing their lossÂes is quite low.”
Notably, New Zealand’s FinanÂcial MarÂkets AuthorÂiÂty had issued a warnÂing about the comÂpaÂny in April, sayÂing that Quwiex was not a regÂisÂtered finanÂcial serÂvice provider in the counÂtry and that the firm was
“MakÂing stateÂments regardÂing the returns an investor would receive from the finanÂcial serÂvice offered, that appear to be false and misÂleadÂing and/or unsubstantiated.”
As of press time, there is no inforÂmaÂtion on how much investors lost to the scam.
Scams hinder crypto adoption
One of the chalÂlenges hinÂderÂing the mass adopÂtion of the crypÂto indusÂtry is the prevaÂlence of scam activÂiÂties that have led to the loss of trust and milÂlions for the industry.
A comÂmon pracÂtice is to promise high yield investÂment returns to unsusÂpectÂing investors. EarÂly investors in the scheme often get paid, thereÂby encourÂagÂing othÂers to join, but in the long run, the scheme usuÂalÂly ends with the scamÂmers disÂapÂpearÂing with their investors’ funds.
The US ComÂmodiÂties and Futures TradÂing ComÂmisÂsion recentÂly charged two indiÂvidÂuÂals over their involveÂment in a $44 milÂlion Ponzi digÂiÂtal assets investÂments fraud.
MeanÂwhile, crypÂto adopÂtion in New Zealand is still low comÂpared to othÂer counÂtries. AccordÂing to a Finder’s report, there has been a decrease in the numÂber of crypÂtocurÂrenÂcy investors in the counÂtry between JanÂuÂary and April of this year.