UK regulator suspects crypto firm of fraud

The UK Financial Conduct Authority (FCA) warned investors about alleged fraud involving the Blockchain Recovery Department.

According to the regulator, the criminals posed as a branch of a real FCA-licensed firm — Gain Capital UK Limited. They sent phishing emails to potential investors to gain access to passwords and private keys.

“The FCA-registered company, with which the scammers were allegedly connected, has nothing to do with the ‘clone firm’… They may use the name of the real firm and other data,” the regulator clarified.

They added that Blockchain Recovery provided a false address and non-existent phone numbers. The FCA urged investors not to disclose their personal data and to verify companies through the Financial Services Register.

Earlier, the regulator introduced temporary registration regime for crypto companies. Organizations that failed to submit documents within the deadline were required to cease operations by 10 January 2021.

Earlier, the FCA warned of the high risks of investing in digital assets and the possible loss of all funds.

Subscribe to ForkLog news on VK!