New Zealand Financial Regulator Warns Public About ‘Profit Bitcoin’ Scam

Published at: April 6, 2020

Amid the apparent global surge of cryptocurrency-related scams, New Zealand’s financial regulator has warned the public against another suspected Bitcoin (BTC) investment scam scheme.

In an April 6 statement, the country’s major financial watchdog, the Financial Markets Authority (FMA), issued an official warning against “Profit Bitcoin” — an alleged get-rich-quick scam that promises returns by using software that “wins” Bitcoin trades with “99.4% accuracy.”

Scam purportedly involved false claims from the New Zealand’s government

The FMA noted that the entity and its website, theprofitbtc.com, have the “hallmarks of a scam,” emphasizing that Profit Bitcoin is not registered as a financial service provider in New Zealand.

According to the regulator, Profit Bitcoin has been purportedly promoted via social media platforms like Facebook and involved some “false news” about the government’s initiatives along with an image of New Zealand’s Prime Minister Jacinda Ardern.

Specifically, Profit Bitcoin’s website offers investors trading services with digital currencies on its proprietary platform, inviting users to get a copy of the software “free of charge.” The fraudulent entity lures traders into expecting upwards of $13,000 in daily returns by signing up for their platform:

“Profit Bitcoin members typically profit a minimum of $13,000 daily. Our members work an average of 20 minutes a day or less. Because the software handles the trading, the amount of “work” required is minimal.”

Profit Bitcoin aka the Bitcoin Profit has apparently been around for a while

While the FMA has warned users against only one website, theprofitbtc.com, the same scam apparently uses several other domains including www.the-profit-btc.com. The scam also appears to have been active for some time, but under other names.

According to an April 5 scam review by trading research website ScamCryptoRobots, Profit Bitcoin purportedly uses a fake crypto robot that has been picked up by a variety of affiliate networks and media agencies. According to the researchers, Profit Bitcoin is a marketing variation of a previously known scam, Bitcoin Profit, which purportedly uses the same system to defraud investors. As previously reported by Cointelegraph in September 2019, the Bitcoin Profit scam exploited fake endorsements by Richard Branson, Elon Musk and Bill Gates as part of its marketing strategy.

As discovered by ScamCryptoRobots.Com, Profit Bitcoin aka Bitcoin Profit software is stealing investors’ money by executing losing trades:

“The Bitcoin Profit software is advertised as a Bitcoin System which can make you “stinking rich” and earn millions even when crypto markets are crashing. In reality it is a fake automated crypto robot designed to execute losing trades and in that way steal your money.”

The warning from New Zealand’s FMA comes amid apparent surge in global scam cases involving cryptocurrencies like Bitcoin. As reported by Cointelegraph, a number of global jurisdictions including the United States and the United Kingdom have already warned the public against crypto scams trying to capitalize on the widespread fears relating to COVID-19.

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Bitcoin
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Fraud
New Zealand
Bitcoin Scams
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