The Ontario Securities Commission has published a securities fraud warning against Karatbars International.
The OSC added Karatbars to its warning list back in July. We missed that notice but are covering it now as a matter of record.
As per the OSC’s July 7th warning;
Karatbars International GmbH and Karatbit (including Karatbit Exchange) are not registered or recognized in Ontario, Canada to engage in either the business of trading in securities or the facilitation of transactions relating to securities (including buying and selling securities), respectively.
Karatbars International is not registered to offer securities in Canada or anywhere else in the world.
Canada’s AMF previously issued a securities fraud warning against Karatbars International in March 2014. This was followed up by an outright ban issued in 2016.
The OSC’s recent warning appears to be a reiteration that Karatbars International is still illegally soliciting investment from Canadian residents.
Following regulatory warnings over the past year and a bit from Namibia, Germany, South Africa and New Zealand, Karatbars announced it was changing its name to Freebay in September.
The reboot follows the disastrous 2019 KaratGold Coin Ponzi coin launch, which resulted in widespread investor losses.
Freebay brings with it V999, a new Ponzi token for Karatbars to scam investors through. KaratGold Coin (KBC) has been abandoned.
Karatbars International and Freebay are operated by Harald Seiz from Germany.
Despite Karatbars operating as a scam for years (BehindMLM first reviewed Karatbars’ initial pyramid scheme model in 2014), German authorities have failed to take any action.