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Police warn crypto enthusiasts to watch out for investment scams


Police have received numerous reports in recent weeks of people falling victim to cryptocurrency investment scams.

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Police have received numerous reports in recent weeks of people falling victim to cryptocurrency investment scams.

Police are warning potential cryptocurrency investors to be wary of new online scams, following numerous reports in the past few weeks.

Detective Sergeant James Robson said police had been investigating a company calling itself Quwiex Limited.

The company sucked victims in by promising large returns if they used their platform, but later cut access to the victim’s investments, he said.

“In the case of ‘Quwiex Limited’, victims initially received interest accruals on their investment and were able to withdraw funds.

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“In mid-April, this scheme suspended withdraws citing a website upgrade.

“However, the website was deactivated on the date the upgrade was supposed to be complete,” Robson said.

Investors’ funds have disappeared.

Police said the scam bears all the hallmarks of a Ponzi scheme.

JOHN KIRK-ANDERSON/STUFF

A Christchurch woman was shocked when she read a Stuff article about another woman being scammed out of more than $500,000 – three years earlier, she’d met her “prince charming”.

A Ponzi scheme is a fraudulent investment scheme where criminals will pay returns to its victims from money it takes from new investors.

Quwiex was registered in New Zealand in September 2021 with falsified information.

Police said the company has “no actual New Zealand links”.

“Unfortunately, as these scammers are based offshore the likelihood of recovering their losses are quite low,” Robson said.

Police are advising victims of the scam not to engage with anyone promising to recover their lost money.

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Police are advising victims of the scam not to engage with anyone promising to recover their lost money.

Police are advising victims of the scam not to engage with anyone promising to recover their lost money.

You can find advice on how to avoid falling victim to online investment scams on the Financial Markets Authority’s website.

“Police acknowledge the financial distress falling victim to one of these schemes can cause,” Robson said.



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