The Financial Markets Authority has issued a warning for the citizens of New Zealand. The regulatory authority has announced that the citizens of NZ must remain cautious when opening up an account and performing trades through E-Capital Forex.
The regulatory authority has confirmed it has many reasons to believe that E-Capital Forex may be involved in running a scam. The firm claim made by the firm is that it is a regulated and registered service provider.
The firm is reportedly approaching Instagram users based in New Zealand to offer services. Multiple complaints have been launched against E-Capital Forex where NZ-based users have claimed their unable to withdraw their deposit Ether (ETH) at the firm.
E-Capital Forex is also stealing and misusing the information of an authorized financial service provider known as Trademax.
Running a Scam
The Financial Markets Authority has claimed that E-Capital Forex may be running a scam. As per the authority, the firm is using its representatives as well as the website to operate its scam on a large scale.
The firm is involved in illegal activities, making cold calls with permission, holding users’ funds without consent, and misusing an authorized firm’s identity and trademark.
Claims of Being Authorized
According to the officials at the FMA, E-Capital Forex has claimed that it is a registered firm in New Zealand. The firm claims that it is authorized to offer financial products and other kinds of financial services in New Zealand.
The reality is that the firm needs an authorization from the Financial Markets Authority to carry out its operations. However, the FMA has confirmed that no representative from the firm has reached out to them for the purpose of acquiring authorization.
The regulator has confirmed that the users are interacting with a firm that is unauthorized. It is too risky for the investors in New Zealand to interact with the firm as there are high possibilities that they may end up losing their funds.
Apart from misrepresentation of the legal status, the company is also reaching out to the NZ locals via Instagram. The representatives at the firm are using Instagram to contact the NZ locals to pitch their products and services.
They are trying their best to sell their services to the users and bring them onboard in order to bring their scam to fruition. The representative are doing this without getting the permission of the people being approached.
Users unable to Withdraw Funds
For those who have been lured by the firm and its representatives, there is a lot of anger and regret among them. So far, many investors from New Zealand who invested money into E-Capital Forex have lodged complaints against the firm.
They have claimed they are not being permitted by the E-Capital Forex platform to request withdrawal of their funds. Many investors have reported that they invested Ether (ETH) through E-Capital Forex but they haven’t been able to withdraw those funds.
They are not being permitted by the firm to withdraw their funds. No reason is being provided by the executives at the firm but the funds seem to have stuck on their platform.
Usage of Trademax’s Information without Consent
Last but not least, E-Capital Forex has copied a lot of information from an authorized firm in New Zealand. The name of the firm is Trademax and the fraudulent firm has reportedly used the website design, trademark, and registration number for FSP.
The regulatory authority has confirmed that the firm is using these details of Trademax without their permission. The email addresses of E-Capital Forex are email@example.com and firstname.lastname@example.org.
The website of the firm is ecapitalforex.com, its phone number is +447520649374 and +1 (669) 200-1984. The wallet ID for Ethereum reported by the impacted investors is 0x6D382006c73C6343Ed07F5a9cbFE49126d266388.
The Financial Markets Authority has requested the investors to remain very alert and do not end up investing into the firm. As the firm is running a scam and it is unregistered, the funds of the investors may not be recoverable.