In Bogotá, the Karatbars company, which arrived in Colombia in May 2019 and was offered returns in cryptocurrencies with physical gold through minibars that would be delivered to the investor’s home, appears to be a Ponzi scheme.
A report in the newspaper EL Tiempo de Colombia describes in detail how Lawyers, doctors, and other businesses were caught up in the company, which promised dividends in a cryptocurrency backed by physical goldBut also, if they got more people into the business, they would be believers in other products such as satellite cell phones and, more specifically, laptops.
Apparently, entrepreneurs and investors overlooked some signs of the business that made it suspicious, however, many decided to invest in this company.
The delivery of pre-loaded MasterCard cards with the company logo to withdraw the profits from the investments made are part of the apparatus Karatbars uses to attract investors to its company.
In May of this year, the New Zealand Financial Markets Authority issued a statement warning that this company and other subsidiaries are not legally registered in the country. Therefore, extreme caution should be exercised in doing business with these companies.
The statement reads as follows: Â
â ???? COMPANY NAME: Karatbars International GmbH, Karatbit Foundation and Affiliates, Freebay
ALSO KNOWN AS: Karatbars Leaders and Investors Pool International, Karatbars Digital Stock Exchange, KC Bank Miami, KC Bank Hong Kong Gold Trading, Karatbit, KCB Coin and KBC Coin.
WEBSITES: https://www.karatbars.com/, http://dev.goldstandardbank.group/index.html#
EMAILS: email@example.com, firstname.lastname@example.org, email@example.com, firstname.lastname@example.org
TELEPHONE: +49 (0) 711/128 970 00
REASON FOR WARNING: We recommend caution before contacting Karatbars International GbmH, Karatbit Foundation and affiliates as they are not New Zealand registered companies or financial services providers. Seminars were held in both Auckland and Christchurch.
We have been told that Karatbars is affiliated with Freebay.
The following foreign regulators have warned the public about karatbars:
BaFin (Federal Financial Supervisory Authority)
Financial Sector Conduct Authority (FSCA), South African regulatory authority
British Columbia Securities Commission
Autorite des Marches Financiers (AMF), Quebec
Bank of Namibia (BoN)
For his part The declaration circulating from Germany in which extreme caution should be exercised with companies in connection with Karabit. is called as follows: â ????Karatbit Foundation: BaFin issues a cease and desist order for the immediate suspension and liquidation of the unauthorized e-money business in Germany
With effect from October 21, 2019, the Federal Financial Supervisory Authority (BaFin) issued an injunction to the Karatbit Foundation, Belize, to cease and liquidate the e-money business operated by Karatbit due to the issue of the “KaratGoldCoin“without the required license.
The order is immediately enforceable by law, but not yet legally binding.
In particular, people who trusted Karatbar in Colombia seem to have fallen for a scam affecting the cryptographic world. The reality is that the mechanisms of fraud and risk in investing are always there. Hence, it is always necessary to thoroughly research potential projects or potential businesses before making any investment.
The Colombian newspaper report indicates this At least 400 people are affected by investments in this company, and these investments range from 4 million to 200 million pesos.
When the company landed in Bogotá in May 2019, it did so through founding boss Harald Seiz, with a presumptuous entry, according to the published report.
Since the company is said to be based in Germany, some of the investors are planning to travel to Germany to find out about their investments in the company.
With any fraud, however, there are security issues that create the very state of trust that enables the investment to be recovered from those who choose to do so. The delivery of a prepaid card from the MasterCard consortium and the effective cash withdrawal from the supposed profits arouse the credible expectation that the business is going according to the law.
In a country like Colombia, which is characterized not only by the peculiarities of the local economy but also by inflationary fluctuations, investing in a tangible asset such as gold appears to be a not inconsiderable opportunity to secure an investment.
The virtual currency in which a profit was expected is Karatgold Coin (KBC).which has been seen since its registration in CoinMarketCap, which started on July 7, 2018 at a value of $ 0.008 per unit and reached a historic high of $ 0.12 cents on July 3, 2019.
Currently, the value reported by the CoinMarketCap website is $ 0.0014 per unit, which is obviously an apparently catastrophic drop in investments by those who trusted the company.
According to the report, it is possible that cell phones and laptops may have arrived in Colombia, but customs procedures have not allowed their release and therefore the seizure has not allowed their delivery, which can definitely be true, but the company’s market indices are for those who are in they invested, not encouraging.
Erika PiÃ ± ero, who answers as the legal representative of Karatbars Colombia SAS and not only ensures the customs confiscation of the equipment, argues that the minibars are also there and therefore the delivery of the oneselfIt has also stated that the complaints and concerns raised against the company from Colombia will be forwarded to the headquarters in Germany.
The reality is that affected investors in Colombia are thinking of joining forces to take legal action that will enable them to get back at least the capital invested.