EndoTech, CashFX Group & MTI warnings from Belgium
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.
CashFX Group is a trading ruse Ponzi scheme that has now received regulatory warnings in twelve jurisdictions.
Despite knowing locals behind the scheme, South African authorities have yet to make any arrests.
Update 4th January 2022 – FSMA has removed EndoTech from their original fraud warning notice. This means on linked notice above, you won’t find EndoTech listed.
In any event, Estonia’s Finantsinspektsioon archived a copy of the FSMA’s original fraud notice. I’ll also include a screenshot below of the notice, incase Finantsinspektsioon’s copy becomes unavailable at some point.
EndoTech is still very much committing securities fraud in Belgium (such to the extent it’s still promoted there), so no idea why FSMA edited their notice.
Update 24th June 2023 – A reader reached out to the FSMA to ask why EndoTech was removed from the FSMA’s original warning.
The FSMA advised the reason EndoTech was removed is because they represented they would block visitors from Belgium to their website.
Endotech must block access to its website for Belgian consumers.
Note this is not the same as regulatory compliance. This is just appeasing a regulator in a country EndoTech clearly didn’t care about.
To this day EndoTech has not registered with financial regulators in any country they solicit investment in.