CBSL Issues Warning on Rising Cryptocurrency Scams
January 17, Colombo (LNW): In a recent announcement, the Central Bank of Sri Lanka has once again sounded the alarm regarding an escalating number of financial scams associated with promises of high returns through cryptocurrency investments.
The bank emphasizes that it has neither granted licenses nor provided authorization to individuals or businesses for engaging in activities such as cryptocurrency operations, Initial Coin Offerings (ICOs), mining, exchanges, deposit-taking or custody services, or advisory services related to cryptocurrencies.
Highlighting the alarming surge in fraudulent activities linked to crypto investments, the Central Bank urges the public to be vigilant and acquainted with the tactics employed by fraudsters to protect their finances.
The bank’s message warns against the various tactics employed by scammers, including the exploitation of social media platforms to promote schemes with high returns, often accompanied by boasts of claimed earnings. It underscores the use of communication channels like Whatsapp and Telegram by scammers to interact with potential victims.
The announcement sheds light on how scam advertisements often lead individuals to professional-looking websites, designed to mask their fraudulent nature. Some scammers even go so far as to conduct classes or awareness sessions on fabricated platforms, disseminating misleading information about earning high returns or trading cryptocurrencies.
Once an investment is made, scammers may swiftly seize funds or continue the deception to attract more victims. The announcement emphasizes the importance of recognizing potential scams, as victims may not realize they’ve fallen prey until attempting to divest from their investments.
Providing insights on protecting oneself from scams, the announcement highlights that cryptocurrencies are unregulated in Sri Lanka, not recognized as legal tender, and lack regulatory safeguards.
The Central Bank identifies several entities found promoting the involvement of cryptocurrencies, including Sport Chain App, Sports Chain ZS Society Sri Lanka, OnmaxDT 3, MTFE App, MTFE SL Group, MTFE Success Lanka (Pvt) Ltd, and MTFE DSCC Group (Pvt) Ltd.
