French authorities issue a warning about Immediate Connect, a fraudulent platform exploiting crypto investors through deceptive online tactics.
A warning from the Paris Prosecutor’s Office and the Financial Markets Authority (FMA) centres on a fraudulent investment offer in cryptocurrency assets. According to the French authorities, the Immediate Connect platform uses social media and the internet to promote or disseminate fake articles that appear to be from reliable news sources or well-known individuals.
This fraudulent operation, which purports to imitate genuine platforms and operates through many websites, targets individuals who are looking for profitable investment options. When the AMF found out about it in June, it marked its automated trading offers as suspicious and advised investors to proceed with extreme caution.
Legal Actions, Blacklisting, and Advisories to Investors
An story that appears to be from a reliable media outlet is luring savers, according to an AMF report. Financial advisors quickly get in touch with consumers who have filled out online forms, pressuring them to join unapproved trading platforms for derivatives, FX, or cryptocurrency assets like Bitcoin.
The AMF then added a number of dubious websites to its blacklist. Several clone versions running as Immediate Connect have been discovered by the regulator. A court case on October 9 led to the restriction of several related web addresses in an effort to stop this fraud by limiting access to them within the borders of France.
The Paris Prosecutor’s Office issued a warning, emphasising harsh penalties for providing unregistered investment services, about dealing with unapproved firms. This entails jail terms of up to three years and fines of up to €1,875,000 for anyone engaged in illicit investing operations.
The AMF’s Suppression of Unauthorised Websites
22 bogus websites that operate in the forex market were placed on a blacklist by the AMF and the Prudential Control and Resolution Authority (ACPR) during the third quarter. These websites purportedly provided derivative products tied to cryptocurrencies and unapproved forex investments.
Together, the AMF and ACPR have added 43 unauthorised websites to their watchlists related to forex and one website related to crypto-asset derivatives since the year’s commencement. These lists of unapproved websites are available to the public through the Assurance Banque Épargne Info Service website and the official channels of the AMF, in an effort to increase investor knowledge.
In the meantime, a “Responsible Influence Certificate” was jointly established in September by the Autorité de Régulation Professionnelle de la Publicité (ARPP) and AMF. Originally created in 2021, the goal of this certification is to reach financial influencers. It places a strong emphasis on honest and prudent financial communication.
A wide range of investment products, including stocks, bonds, funds, ETFs, and derivatives, as well as services like portfolio management and investment advising, are covered in the certification module. It also addresses topics like digital asset service providers and cryptoassets.
