NZ Authorities Investigate Crypto Ponzi Scheme

Crypto crimes are surging across the world as bad actors have started exploring new ways to lure investors through short-term high-return schemes. According to a report published by the NZ Herald, Auckland City Financial Crime Unit is now assessing reports involving Quwiex Limited, a company that promised its investors high daily returns on their crypto investments.

Additionally, Quwiex Limited presented a false company registration address on its website. The company suspended its withdrawals, deactivated its website last month and disappeared with all the funds.

“This company was registered in New Zealand in late September 2021 with information that has now been proven to be fraudulent. No real connection to New Zealand has been identified, which means that the people involved in this scam are overseas,” Detective Sergeant James Robson of the Auckland City Financial Crime Unit, said.

New Zealand has always been one of the most attractive destinations for financial services providers around the world. The country is home to prominent FX brokers. However, scammers are now taking advantage of New Zealand’s status as a financial center.

Crypto Ponzi Schemes

Last week, the Commodity Futures Trading Commission (CFTC) in the US busted a fraudulent crypto investment scheme in which two individuals took $44 million worth of investment illegally from investors. Throughout the last 2 years, New Zealand’s Financial Markets Authority (FMA) has issued warnings against the rising crypto scams in the region and highlighted the growing risks associated with the digital asset ecosystem.

“The police are aware of the financial distress any of these schemes could cause. Unfortunately, since these scam artists are based abroad, the likelihood of making up for their losses is very low,” Robson added.

“There have always been investment scams operating through different ‘storefronts’ – the exciting new thing at the moment is cryptocurrency. A lot of them are just a ‘show’ on the internet and are using cryptocurrency to lure you,” a Spokesperson of FMA, commented.