Financial commission cautions against investing in high-risk crypto assets

The province'sFinancial and Consumer Services Commission has issued a warning about high-risk crypto asset investing after aNew Brunswick resident lost money to a company called 4XFX.net.

The company claims to operate a bitcoin tradinginvestment platform from Germany.

On its website, the commission said thevictim had also been also approached by a company called Coinbrokerzthat was "operating a similar scam."

While thesecompanies make claims to offer investment opportunities in bitcoin along with other crypto assets and commodities, theirwebsitesare no longer operational.

A warning about4XFX.netwas also issued by the Manitoba Securities Commission after a Winnipeg resident suffered a loss.

The New Brunswick commission said neither company has ever registered to trade securities or derivatives in the province. The commissionwarns residents to avoid engaging with these companies.

There have also been warnings by international regulators.

The commission says the risks associated with products based on crypto assets include the potential for fraud.

Anyonesolicited to buy or trade crypto assets are advised to check to see if the company is registered with the commission. They should alsodo an internet search about the company to see if it has been subject to any disciplinary action.

The commission says never to send money out of Canada. "If you do not understand the technology, stay away."