The UK Financial Conduct Authority (FCA) has issued a new warning to investors after two men, Raymondip Bedi and Patrick Mavanga, were convicted of a £1.5 million cryptocurrency fraud. This scam targeted at least 65 investors between 2017 and 2019 through cold calls and promises of high returns in fake online investments.
According to the FCA, Bedi and Mavanga directed investors to a professional-looking website to establish credibility, convincing them to invest in cryptocurrency schemes that ultimately didn’t exist. “If you’re contacted out of the blue about an investment opportunity that sounds too good to be true, then it probably is,” said Steve Smart, FCA’s joint executive director of enforcement.
Bedi and Mavanga pleaded guilty to charges of conspiracy to defraud, money laundering, and conspiracy to breach the Financial Services and Markets Act. Mavanga faced additional charges for using false identification and deleting call recordings, attempting to obstruct justice after Bedi’s arrest in 2019.
Operating under names like CCX Capital and Astaria Group LLP, they reportedly tricked investors with promises of high returns that never materialized. The FCA has been working to reach affected investors and has warned others to remain vigilant.
Following these convictions, the FCA’s ScamSmart campaign emphasizes the importance of scrutinizing investment offers. According to the FCA’s recent report, almost 87% of crypto firms applying for UK registration in 2024 did not meet required anti-money laundering standards.
In June 2023, the FCA introduced a “financial promotion perimeter” to improve transparency in crypto advertising, ensuring ads are fair and non-misleading. Increased awareness of crypto scams has led 63% of consumers to verify investment legitimacy, showing a 5% rise from last year.
The FCA’s commitment to investor protection remains firm, with Bedi and Mavanga facing sentencing at a later date.