CoinBene, the cryptocurrency exchange, was in the news recently after the German financial watchdog accused it of operating without acquiring the necessary licensing. BaFin also accused the exchange of hiring crypto traders who conduct trades on behalf of its members. Germany classifies cryptos as financial instruments and as a result, crypto traders must be registered under the German baking law, the Kreditwesengesetz (KWG).
However, the company that BaFin issued a notice against was CoinBene LTD Germany, a clone that had impersonated the Singaporean exchange to lure unsuspecting customers in. Speaking to CoinGeek, the exchange denied any association with the German clone company.
The exchange had received notices about the new clone weeks before BaFin issued a warning. As it does with all the other cases of fraud and scam, it “issued a warning to our users through our Twitter and website to not trust these fraudulent recruitment attempts by CoinBene impostors,” the exchange told CoinGeek. It added:
“We have been dealing with similar phishing and scam activities for some time now since CoinBene’s reputation has grown steadily in the cryptosphere. Criminals attempt to hijack our reputation to scam unknowing users who wish to use our services, and we’ve always dealt with them with punctual warnings & announcements to our users, as well as actively reporting and cooperating with law enforcement agencies.”
CoinBene had quickly reached out to BaFin after it up the warning and the two entities resolved the matter. The watchdog updated its notice to reflect the changes. CoinBene also shared all the information it had with German Zentrale Ansprechstellen Cybercrime der Polizeien (ZAC) Rheinland-Pfalz Division, the region where the clone claimed to be from. The exchange is yet to hear from the German authorities,