Investors are turning to the FMA on an increasingly frequent basis, who have invested their money in crypto assets and fear that they have been the victims of fraud. In the monitoring of the markets certain particularly frequently used models for fraud have been identified, which are described briefly below.<\/p>
In this form of fraud, customer deposits are collected in the form of Bitcoin, Ripple, Ethereum etc. with the promise of unrealistically high returns and a low risk. Profits are frequently also actually paid out at the start, however such profits are not actually made by the selling of a specific asset. Instead profits are paid out to existing customers from the funds received from new customers. However, as soon as larger proportion of the investors demands profits to be paid out at once, or where the stream of new customers dries up, then the system breaks down.<\/p>