Thai financial watchdog, the Securities and Exchange Commission (SEC), recently warned the public about a new form of investing scam, in which a bogus entity, masquerading as a regulated legal digital currency trading firm solicits traders into investing with it. This, according to a report by the Bangkok Post, August 25, 2019.
As the various financial institutions and regulators the world over slowly warm up to the currency of the 21st century, criminals associated with it aren’t too far behind either.
Per sources close to the matter, Thailand’s financial regulator, the SEC, has issued a public warning wherein has warned the country’s populace about a Ponzi trading firm going by the name of FX Trading Corporation which claims to be a regulated digital assets trading company.
A spokesperson for the Department of Special Investigation, Lt Co Woranan Silam, on August 24, 2019, passed on the SEC’s warning to the public stating that contrary to its claim, FX Trading Corporation is not authorized to trade in digital currencies.
The spokesman added that the fraud comprises of several other “overseas-based” shell companies that offer services to their clients via their websites. The exact estimates regarding the total amount which these companies have swindled from the unaware public are still unknown.
According to the government representative, currently, Thailand only has three authorized firms that operate digital assets business – Bitcoin Co (www.bx.in.th), Bitkub Online Co (www.bitkub.co.th) and Satang Corporation Co (www.satang.pr). The Asian country has also, until now, only given regulatory green light to one digital currency broker or dealer – Coins TH Co.
International Collaboration Required
Silam also made an appeal to other international financial watchdogs from across the globe given the global flavor of the scam. He stated that Thai legal authorities might require cooperation from regulators from other countries to lend in their inputs as and when required.
In a similar development, in August 2018, the Crime Suppression Division (CSD) division of the Thai police had clamped down on a group of crypto criminals who had carefully crafted a bitcoin (BTC) related scam worth more than $30 million.