Police are issuing a warning after several reports in recent weeks of people falling victim to a cryptocurrency investment scam that bears the hallmarks of a Ponzi scheme.
Detective Sergeant James Robson said police are assessing numerous reports involving a company calling itself "Quwiex Limited", which was promising victims high daily returns through their platform.
"This company was registered in New Zealand in late September 2021 through information which has now been established as falsified," said detective sergeant Robson.
He said police have made enquiries into the supposed director of this company, including a supplied New Zealand address.
"Unfortunately, the identity documents are fake and there is no connection to the address supplied.
"No actual links to New Zealand have been able to be identified, which means those involved in this scam are based offshore."
Detective sergeant Robson said the scam bears the hallmarks of a Ponzi scheme and has lured unwitting victims in.
A Ponzi scheme is a fraudulent investment scheme in which the operator pays returns on investments derived from new investors, rather than from legitimate investment profits.
"In the case of 'Quwiex Limited' victims initially received interest accruals on their investment and were able to withdraw funds," Robson said.
"In mid-April, this scheme suspended withdrawals citing a website upgrade. However, the website was deactivated on the date the upgrade was supposed to be complete," Robson said.
He said investors' funds have now disappeared and because the scammers are based offshore it's unlikely the victims will get their money back.
"Police acknowledge the financial distress falling victim to one of these schemes can cause.
"Unfortunately, as these scammers are based offshore the likelihood of recovering their losses are quite low."
Police said people who fell victim to the scam shouldn't engage with companies or people promising to get their money back.
"In our experience, these services, which require victims to pay, have not achieved any positive results."
Potential investors are also being urged to be vigilant of potential scams.
The Financial Markets Authority provides helpful advice on its website to help avoid falling victim to online investment scams.
It also has advice on what to do if you are in the unfortunate position of becoming a victim of such a scam.
