German Regulator Flags Investment Website Engaged in Identity Fraud
Germany’s Federal Financial Supervisory Authority (BaFin) today (Monday) warned against an investment website, cmfx.trade, operated by the company Capital Master GmbH. The regulator also finds links to identity fraud by the claimed representatives of Capital Master.
Another Online Financial Fraud
“According to information available to BaFin, the operators are providing financial and investment services on this website without the required authorization,” the German regulator stated, adding that “the website does not contain a legal notice or any other information as to the company’s domicile or business address.”
According to the website, Capital Master offers investment services with contracts for difference (CFDs) instruments of forex, cryptocurrencies, and futures. It claims to be a “strong advocate of transparency” and “completely separated from the company’s own funds.”
Among many other false claims, the platform says it has “ongoing professional collaboration with a team like McLaren” and also names Binance, Coinbase, Kraken, and Blockchain.com.
Online trading platforms in Germany need to be regulated by BaFin. However, Capital Master did not hold any regulatory license. Despite the tall claims, its website provides the bare minimum basic information without any details of its offerings or services.
In its warning, BaFin detailed that it has information that persons claiming to be employees of Capital Master are contacting the customers of Tierion Finance, another unauthorized online trading platform against which BaFin has already taken action.
“The persons claiming to be employees of Capital Master GmbH offer these aggrieved customers the chance to recover the capital they had originally invested, including any profits allegedly accrued since then. When making this offer, they claim that a connection exists between them and EUWAX Aktiengesellschaft, a company that has been granted authorization from BaFin. However, no such connection exists,” BaFin stated.
The regulator stressed that “there is no business relationship between EUWAX Aktiengesellschaft and Capital Master,” and thus, it is a case of “identity fraud committed by unknown perpetrators against EUWAX Aktiengesellschaft.”