Fake MFSA Letters Demand Fines From Bitcoin and Ethereum Traders, Regulator Warns

A new scam is circulating among cryptocurrency
traders, using forged documents that appear to be from Malta’s financial
regulator to demand payments for fictitious market manipulation fines.

The Malta Financial Services Authority (MFSA) has
issued a public warning, urging users to remain vigilant after discovering the
fraudulent use of its name, logo, and official signature format.

Scam Targets BTC and ETH Traders

According to the MFSA, scammers have distributed fake
documents to individuals involved in Bitcoin and Ethereum trading. These
documents claim to impose penalties for alleged market manipulation and
threaten regulatory action if recipients fail to comply.

The MFSA confirmed that these threats are entirely
fabricated and that the documents bear no legitimacy. The forged letters are
crafted to appear authentic, misusing the MFSA’s branding to deceive recipients
into making payments.

The scam aims to exploit trust in regulatory
institutions to extract funds from unsuspecting users. In response to the incident, the MFSA has called on
the public to exercise caution when receiving unsolicited communication, even
when it appears to come from a known institution.

“The Authority wishes to alert the public against such
fraudulent schemes which are used as a means to fraudulently obtain funds
from potential victims by purporting to falsely originate from legitimate
authorities, in this case, the MFSA,” the MFSA said in its statement.

MFSA Urges Caution and Verification

The regulator advised consumers to verify the identity
and legitimacy of senders before engaging in any financial transactions.
Individuals can check whether a financial service provider is licensed through
the MFSA’s official register.

The MFSA encourages anyone who suspects they are being targeted by a scam or who may have already fallen victim to cease all transactions immediately and report the matter through the authority’s official contact channels.

The ongoing scam highlights the growing risks facing
crypto users, particularly in a sector where phishing attempts and fraudulent
activity have become increasingly sophisticated.

The MFSA issued a similar warning last year about
potential impersonation of its officials. The watchdog alerted the public that
suspected individuals or entities could be circulating documents, messages, and
emails falsely claiming to come from its officials.

This article was written by Jared Kirui at www.financemagnates.com.