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New Hampshire cracks down on Finstate Investment for crypto fraud

New Hampshire cracks down on Finstate Investment for crypto fraud

GrafaGrafa2024/08/20 10:20
By:Mahathir Bayena

The New Hampshire Bureau of Securities Regulation has issued a cease and desist order against Finstate Investment LLC, accusing the firm of engaging in fraudulent cryptocurrency activities.  

The company is alleged to have misled investors through a deceptive cryptocurrency investment website, making false claims about account activity and providing illegal guarantees against financial losses.  

The case centers around a retired New Hampshire resident who was persuaded via Facebook to invest $3,526 in cryptocurrency with Finstate.  

Initially, the investor was led to believe that their account balance had grown substantially to $60,762.  

However, when attempts were made to withdraw the funds, it became clear that Finstate had not actually traded the investor's money.  

Instead, the funds were allegedly transferred to the cryptocurrency exchange Binance, with no intention of returning the profits to the investor.  

The Bureau has labeled Finstate's actions as fraudulent and has demanded an immediate cessation of its operations.  

In addition, the regulator is seeking restitution for affected investors and imposing fines on the company.  

The case underscores the increasing use of social media platforms like Facebook to lure unsuspecting individuals into fraudulent investment schemes.  

The Bureau is urging the public to exercise caution and thoroughly vet any investment opportunities solicited through social media.  

While Finstate Investment LLC has the right to contest these allegations in an administrative hearing, the case highlights the need for heightened awareness and scrutiny when dealing with online investment offers, particularly those involving cryptocurrencies.  

The New Hampshire Bureau of Securities Regulation remains committed to protecting investors and ensuring that fraudulent schemes are brought to justice.  

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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