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Financial advice and bitcoin trading

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Blik2
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Financial advice and bitcoin trading

Has anyone on this forum, heard of a company / website called "mylifestylegalaxy.com"?  A friend's wife, was corned by another lady, who has been despertately trying to get my friend's wife to invest in Bitcoin mining.  He asked me to have a look over it, as a second opinion.  Simply, this crowd, want a $ 500.00 minimum investment with a $ 600.00 fee, and the claim is they will double your cash in 4 months with Bitcoin mining.  Ok - red flags pop up all over the scheme and site to me - but, I guess the adage "a fool and his money are easily parted" applies.  But I just dont dont want my mate to lose his cash.  I warned him off the site, and better to stick his $1100.00 into his homeloan.  Anyway, I thought I would just check if anyone else has come across this website and crowd?  

 

Surely what this website is doing is against FSB regulation?  Surely this is an "illegal" pyramid scheme?

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Re: Financial advice and bitcoin trading

Blik This is a 10 second conversation. given you have warned him off - which based on what you have said below  was good advice - when you visited the site

- I think highly dangerous of itself - did you see a FSB registration no? (He should go to the FSB website - and see if this lot

are regsitered as FSP 's and their licence category - this last point is VERY NB. And you can also report stuff like this there.  

"Invest in bitcoin mining" - WHAT is "bitcoin mining"? And how - loans, shares ? Promoting either of those would I think be in breach of the FSB rules as I think as there are questions around deposit recieving.  (And if I were you( which of course I am not ) I would tell my  friend to suggest to his wife she tell her friend to find new less gullible friends?)

 

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Blik2
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Re: Financial advice and bitcoin trading

Yip, agree completely.  Just wonder how these websites pop up and scam people and remain unregulated (so to speak).  Simply, all the "seller" has to do, is con two or three people a month and they do well on the fees alone.

 

An aside, it seems the FSB does not check up on, or regulate pyramid schemes; that seems to be one of the Reserve Bank duties.   It seems the FSB concerns itself with Ponzi schemes.

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TheInvestor
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Re: Financial advice and bitcoin trading

I have been personally mining cryptocurrencies since July 2017 and at the moment I have turned my machines off as the financial cost (utilities) have outweighed the financial gain. Mining at the moment is run on paper thin margins (if you can get utilities for free). Everyone jumped on the train in December thinking they could also double their money in days and now scammers are trying to convince people that (due to the price corrections), this is the time to jump in (if they missed the 1st opportunity). Definitely a scam. If he wants to get into the cryto world, put that USD1,100 into bitcoin itself (he'll get c.a. 0.17 BTC).

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