Another Crypto Investment Scam Gets Flagged by New Zealand Regulator

The project, called Alliance Investment Limited, has the characteristics of a Ponzi scheme and falsely claims links with an officially registered company, the FMA has explained.

New Zealand’s Financial Markets Authority (FMA) has added a new cryptocurrency investment project to its warnings list. A company called Alliance Investment Limited operates without the necessary authorization and exhibits characteristics of a fraudulent scheme, the regulator said in a statement on Friday.

According to the company’s website, it was founded in 2008 in New Zealand, or a year before the birth of the first digital asset, Bitcoin (BTC). Alliance Investment presents itself as “the best cryptocurrency investment company.” It claims to maintain Visa and Mastercard payments although the logos of the payment processor redirect to its own website, not to those of the US companies, as in the standard practice.

The venture offers investments in BTC, Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). It has a minimum deposit amount of $500 and claims to deliver a 5% weekly return on investment (ROI) for a crypto holding of up to $50,000, 8% for a $50,000 to $100,000 package, and 12% weekly returns for more than $100,000.

“Alliance Investment Limited is an unregistered, unregulated entity who are falsely holding out as being associated with a legitimate company, Alliance Investments Limited. We believe that Alliance Investment Limited trading through, has the hallmarks of a scam and would, therefore, recommend exercising caution,” the FMA said.

As of the time of writing, there was no official response from Alliance Investment.

“Alliance Investment Limited, has become an even more competitive and outstanding provider of financial and technical resources for small and large business. The combination of technical and financial resources has made Alliance Investment Limited the strongest possible investment partner for you,” the company says on its website.

Last month, FMA warned about three other cryptocurrency related projects - Bitcoin Revolution Ltd, OneLife Network, and OneCoin - due to suspicion of their involvement in fraudulent activities.

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