Steer clear of this ‘crypto’ firm ...the foreign warning is valid

A.I. writes: What are your thoughts on a British company – Crypto Trust Consulting – that attracts a warning from a foreign regulator? Should it deter me making an investment?

AS ITS name suggests, Crypto Trust Consulting invites investment in Bitcoin and other made-up magic monies. This is a high-risk sector, but remarkably the company pledges: ‘By actively managed strategies, we guarantee 100 per cent of their deposits and benefit from the exorbitant profit opportunities of crypto assets.’

This is a London company, but the Austrian financial watchdog has issued a warning that it has no licence to accept deposits or manage funds. The business is run by Marc Bendrat, 34, a German citizen, and officials suggest it is really based in the small Austrian town of Güssing.

So far, so straightforward. But when US-based website Offshore Alert reported the warning, editor David Marchant received a message from Bendrat in London, threatening criminal charges and demanding he delete it as, ‘Your information does not originate from authorised or verified sources.’

So was the Austrian warning a mistake? Bendrat admitted to me that his company has used an address in Austria, but now uses only its London address. He denied accepting deposits, explaining that he only accepts ‘crypto assets’.

Bendrat claimed to be acting lawfully because his company operates ‘under the licence of a Romanian investment firm’. He offered documents proving this, but when I said yes please, I heard nothing more. I also asked for details of the 100 per cent guarantee scheme, but Bendrat offered no answers.

So yes, the Austrian warning carries weight, even though our own Financial Conduct Authority has not echoed it, despite the involvement of a London company. Steer clear.