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German regulator BaFin warns of Coinex.com and ugi.com

Rick Steves

BaFin has warned investors that coinex.com is operating without a proper license and United Global Investors is a clone broker scam.

BaFin, German’s financial watchdog, has warned the public against the firms operating coinex.com and ugi.com as they have not been granted authorization under the German Banking Act to conduct banking business or provide financial services.

From time to time, the German regulator releases statements warning investors of shady or unlicensed companies attempting to do business with local residents.

coinex.com operating in Germany without a BaFin license

coinex.com is a brand owned and operated by VINO GLOBAL LIMITED, which is not supervised by BaFin but seems to be conducting banking business and providing financial services in the Federal Republic of Germany without the required authorization.

BaFin explained that, under the KWG, authorization from BaFin is required to conduct banking business or provide financial services in Germany. However, some companies operate without the necessary authorization.

The regulator and the German Federal Criminal Police Office recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.

United Global Investing is a clone broker scam

BaFin has also warned against United Global Investing, Inc.. The financial services firm, which is based in Denmark and the United States of America, has not been granted authorization to conduct its business in Germany. 

In this case, the regulator has knowledge that the company is contacting consumers on an unsolicited basis and advising them to buy specific shares.

United Global Investing, Inc. is also advertising that its investment fund units are available for purchase on its website ugi.com, the government agency added.

According to BaFin, United Global Investing, Inc. has copied key aspects of and used content from the website that belongs to the US company U.S. Global Investors, Inc. (usfunds.com) for its own website.

BaFin has no evidence to suggest that the two companies may be working together. In fact, this is likely to be a case of identity theft committed by United Global Investing, Inc. against U.S. Global Investors, Inc.

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