Regulators Issue Warnings Over 'Fraudulent' Bitcoin Investment Scheme

Regulators in Belize and the Seychelles have sounded the alarm about an allegedly fraudulent bitcoin investment website.

AccessTimeIconNov 22, 2016 at 4:44 p.m. UTC
Updated Sep 11, 2021 at 12:37 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Regulators in Belize and the Seychelles have sounded the alarm about a bitcoin investment scheme.

Belize’s Office of the International Financial Services Commission has said that Xmaxbit, a website claiming to offer cryptocurrency investment and mining services, is not officially registered in the country. A registration document posted on its website is “a complete forgery”, according to the agency.

The Belize government noted:

“This entity is not licensed/regulated by the International Financial Services Commission or any other competent authority in Belize to conduct any type of trading business.”

The agency said that website visitors should “take note and exercise extreme caution” in light of the alleged forgery.

Belize isn’t the only country to accuse Xmaxbit of fraud. Earlier this month, the Seychelles Financial Services Authority issued a similar warning about the site, stating that Xmaxbit was fraudulently claiming that it was registered in the Seychelles.

“Members of the public are therefore strongly advised to exercise extreme caution when dealing with Xmaxbit,” the regulator said.

An request for comment sent to an email address posted on the Xmaxbit website was not immediately returned.

Image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.