investors scream scam

New Financial Technology, a startup active in the crypto market without authorization, has blocked access to customer accounts. Thousands cry out to scam

Thousands would be the victims of yet another cryptocurrency crash. The news is that for the first time this happened in Italy. It is in Silea, a town of 10 thousand inhabitants in the Treviso area, that New Financial Technology was born, the company that last Friday due to “unforeseen internal problems” communicated to its customers the blocking of their accounts, from which they can no longer withdraw money despite the fact that the administrators had put pen to paper in the contractual documents that the money would be “guaranteed and safe”.

The promise of 10% interest every month

The company promised 10 percent interest each month, thanks to an unspecified scheme of algorithms capable of buying and selling cryptocurrencies on different platforms, earning on the price difference.

document
Part of the contractual conditions offered by New Financial Technology

And in fact New Financial Technology paid the maxi-interest for a few months before closing the accounts. On Telegram, penniless investors organize themselves. There are those who entered the investment only on July 22 and claim to have lost 10 thousand euros in one fell swoop, the minimum investment, who even say they have burned 100 thousand.

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Screenshot from the Telegram chat “The Scammed by New Financial Technology”

Long legal avenues

But the risks of never seeing your money again are real. In fact, there are no automatic safety nets and investments are at risk. The legal avenues are expected to be endless: according to the lawyers, two of the three directors would be unreachable in Dubai, New Financial Technology is based in London (and other companies in Sweden and in Dubai itself), an asset structure that is anything but solid and does not appear among the entities authorized by Consob to act as a financial operator.

Citizen defense movement: “Possible Ponzi scheme”

In the last few hours, the only director still available has promised investors to repay the money in four months, but few believe it. According to the Movement for the defense of the citizen of Treviso, which has received up to 400 reports in these days, it would be the most classic of the “Ponzi scheme”, in the name of the famous scammer Charles Ponzi. That is to say a house of cards based on the adhesion of new investors: as long as new money continues to be paid, it is used to pay interest to those who had entered previously. But when the mechanism is interrupted and the new members are dwindled, the house of cards collapses and the scammers run away with the capital. Lawyers’ warnings and complaints are now being prepared to initiate investigations, including against agents, a dozen investors who have helped the company spread the word and collect new members, in exchange for a fee.

Ponzi
Charles Ponzi in 1927 (Getty)

The avalanche of crypto

The avalanche that hit the crypto world in 2022 has submerged solid and recognized realities: the best known case is the Celsius platform which went bankrupt, taking with it almost 4.7 billion dollars of its users. While Binance was forced to close its accounts for a few hours in June, so did the Asian exchange Zipmex in July. And with Bitcoin down 50 percent year-to-date, the scams will only continue to surface.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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