Financial.org is a UK established company that claims its leading position in trading and financial services with a simple and straight-forward process. Even though the Financial.org mentions its educational nature of a business, as a nonprofit organization of the platform while the costs are covered by the referral programs and membership fees or educational activities, while the company does not handle any investments. The facts revealed thousands of investors that fall into a scam through a financial.org, while the clients were targeted mainly across the Middle East and Asia region.
According to a Reuters report, Financial.org wrote on the company’s Facebook page that it had converted the balances in its investors’ accounts to its own digital token, dubbed “FOINS.”
The move comes a few weeks after Financial.org, which was red-flagged by eight regulators, warned depositors that it would cut 20 percent of their money and permanently close their accounts unless they raise the minimum capital to $10,000 from $3,000.
The UK’s FCA has blacklisted the asset manager back in January and, in March, United Arab Emirates’ securities regulator issued a warning for investors to steer clear of the company.
The company and their asset manager were red flagged by numerous regulators including UK’s FCA, Singapore and other among the industry authorities, while investors were warned to engage into any programs or offering from the Financial.org. The authorities received complaints from customers that contributed to investment schemes operated by financial.org, while all transactions were processed through a Blockchain system.
Despite the statement that the company is not a broker, but only educates traders, yet any financial investment advice or service should be performed by a legitimate firm or company. Otherwise, the traders might fall under high risk to be scammed if not by an advisory company itself but by their affiliated “partners”. In a scenario it became obvious already with the financial.org performance, therefore traders are strongly recommended to choose among regulated entities and trading providers.
The licensed company constantly supervised and monitored by the authority, while fraud risks are minimized, as the company will be dismissed or sharply fined by the regulator. Along with that, the educational sources or trading environment should be operated through a number of protective tools that also delivers safe conditions to trade.