Belgium’s Financial Services and Markets Authority has issued securities fraud notices against EndoTech, CashFX Group and Mirror Trading International.
As per the FSMA, EndoTech, CashFX Group and MTI are offering what they refer to as “expert advisors” schemes.
An Expert Advisor is a type of software that tells you when to make certain trades or even carries them out for you automatically, based on preprogrammed parameters.
In other words, your typical MLM crypto Ponzi “trading bot” scheme.
Being passive investment schemes, EndoTech, CashFX Group and MTI are required to be registered with the FSMA.
These companies do not have an authorization to offer financial services and products in Belgium.
This is the equivalent of a securities fraud warning in other jurisdictions.
Moreover, the FSMA has found that such trading software often occurs via a pyramid structure.
In general, these are referred to as ‘MLM’ (multi-level marketing) schemes, in which consumers are incentivized to bring in new members.
In exchange, they receive compensation in the form of a commission or discount on the price of the software package.
The FSMA issued its warning notice on April 24th.
EndoTech is an Israeli firm tied to Daisy AI and iGenius, both of which commit securities fraud and operate illegally.
CashFX Group is a trading ruse Ponzi scheme that has now received regulatory warnings in twelve jurisdictions.
Mirror Trading International is a South African Ponzi scheme. The scam collapsed last year after its offices were raided.
Despite knowing locals behind the scheme, South African authorities have yet to make any arrests.