Financial Crime World

UK Regulator Exposes Crypto Scam in Scotland Linked to Armenian Nationals

The Financial Conduct Authority (FCA) has accused a cryptocurrency broker, AsicTrader, of operating without a license in the UK. The company, which claims to have an office in Scotland, is suspected of offering its services to retail investors without proper authorization.

Unlicensed Brokerage Activity

AsicTrader offers cryptocurrency trading services without the necessary regulatory approval from the FCA. The broker’s address, listed as Small Firms Services, shares space with thousands of other companies and is a virtual office registered for £75 ($98) per year.

Red Flags

  • AsicTrader claims ownership by Hellax Corp, a UK-registered company whose documents are signed by James Dickens.
  • Further research has linked Dickens to Dastinway LLP, a firm controlled by Armenian nationals Rubik Abrahamyan and Karen Avetisyan.
  • The duo is suspected of being behind the previous cryptocurrency scam, Cryptobank UK, which attempted to raise £500,000 ($651,000) through an initial-coin-offering.

The FCA has yet to take formal action against AsicTrader or its owners. However, the discovery has raised concerns about fraudulent activities in the Armenian cryptocurrency scene. The authorities are urging investors to exercise extreme caution when dealing with unlicensed brokers and to verify the legitimacy of any investment opportunities before committing funds.

Takeaways

  • Always research a broker’s regulatory status before investing.
  • Verify the legitimacy of any investment opportunity before committing funds.
  • Be cautious of virtual offices or companies that share space with many others.
  • Avoid investing in schemes that seem too good to be true.