The US regulator has launched an offensive against the world’s two largest cryptocurrency exchanges, plus Apple’s yet to prove a use case for virtual reality headsets to investors.
The Financial Markets Authority is urging people to steer clear of a crypto company that offered audiences unbelievable returns.
The FMA “stop order” bans people from making offers of Validus Financial Products.
A High Court judgment showed one Validus offer claimed to help punters turn a $250 initial weekly contribution into as much as $35,000.
Validus hawked its offers at seminars, including an event at Mt Smart Stadium on November 19 last year, the FMA said.
The stop order announced today followed an earlier interim order in February.
After the interim order was imposed, Validus said the “Validus Pool” promoted at the stadium seminar had been removed and no longer existed.
The FMA said what was presented at the seminar was false or misleading, or likely to mislead or confuse, because it related to an offer of financial products which did not exist or was materially different from that described.
The Financial Markets Authority is urging people to steer clear of Validus, a crypto company it says offered people these fake returns. Photo / Supplied
“Seminar attendees were induced to purchase, purchased or intend to purchase, educational packages in reliance on false or misleading representations,” the FMA’s Paul Gregory said today.
“They will not receive the promoted 2 to 3 per cent return on their money, or be able to withdraw that money. They are likely to suffer material financial harm.”
The authority said Validus chief network officer Dr Parwiz Daud spoke at the seminar, as did Souai Tito.
Attendees were told: “Once you purchase a [education] pack you get rewarded … so with the money that you purchased your education packs, we have a team of experts that trade your money in the forex market. And with that you get paid 2 to 3 per cent weekly loyalty points over 60 weeks.”
People who bought into Validus' offers at a seminar at Mt Smart last year are "likely to suffer material financial harm", a market regulator says. Photo / Brett Phibbs, photosport.nz
The audience was told Validus traded in stocks, and gaming, crypto, and non-fungible tokens (NFTs).
And they were also told after 60 weeks they would get 350 per cent of their money back.
The authority said Validus appealed the Order and applied for interim relief prohibiting the publication of the order while the appeal was determined.
The FMA says what Validus presented at the seminar was false or misleading. Photo / Supplied
The appeal was heard on June 21 at the High Court in Auckland, where it was thrown out.
The lawyers who represented Validus have been approached for comment. Tito has been phoned for comment but there was no answer this afternoon.
Validus International LLC is registered in the US state of Delaware and Validus-FZCO is based in Dubai.
NBR last November reported the Validus courses or packages had to be purchased with cryptocurrencies and ranged in price from US$50 (NZ$80) up to US$10,000 (NZ$16,145).
