According to sources from - By BitcoinInfoNews.Com
Raymond Bedi and Patrick Mavanga were convicted in London for $2 million fraud involving fake crypto investments from 2017 to 2019.
The event highlights the vulnerabilities of traditional fraud methods impacting retail investors rather than the wider cryptocurrency market.
$2 million fraud carried out through clone companies
Authorities identified Raymond Bedi and Patrick Mavanga as key players in the $2 million cryptocurrency fraud. They operated under Astaria Group LLP and CCX Capital, creating clone companies to deceive investors. The fraud lasted from February 2017 to June 2019.
The duo misled investors by promoting fake crypto investment schemes. They were linked to fictitious firms labeled 'Ian Buckley Financial Services' and 'Capital Partners Group'. Both individuals pleaded guilty to the charges.
"Bedi and Mavanga lured investors with promises of high returns from crypto investments, but their schemes were nothing short of brazen fraud." — Steve Smart, Executive Director for Enforcement and Market Oversight, Financial Conduct Authority (FCA)
The victims' losses prompted a swift response from the FCA
The Financial Conduct Authority (FCA) reported significant losses for 65 victims. The fraud did not impact real cryptocurrencies, indicating risks in protecting retail investors. Regulatory measures were quickly enacted to curb the perpetrators.
The fraud targeted fiat investments without involving real crypto assets, insulating the incident from market liquidity changes. Notable figures in the crypto community did not publicly comment due to the limited impact of the event.
Clone scheme frauds align with historical trends
Previous frauds in the UK included similar clone schemes targeting unregulated investors. In 2019, a notorious crypto fraud group employed these tactics without systemic impact, much like the Bedi and Mavanga case.
Experts expect further enforcement actions to prevent such crimes. Data suggests that increased vigilance by regulators and investor education could mitigate future cases.
#MarketRebound , #Сryptomarketnews
Subscribers to this feed are those who enjoy being among the first to be informed about the most interesting and relevant changes in the world of cryptocurrency and financial market sentiments!!!
