The German Federal Financial Supervisory Authority (BaFin) on Friday launched an investigation into Fides Ventures and the Nexquant exchange for offering financial and crypto-asset services without the required authorisation.
The regulator said the entities are targeting German investors through WhatsApp groups and social media, promoting a proprietary ‘FIVS’ token and directing users to trade on the Nexquant platform. Neither entity is supervised by BaFin.
Fides Ventures presents itself as an American company and also operates under the name ‘Fides Ventures Business School,’ referring investors to the website fidesventuress(.)com. The Nexquant exchange, which trades as ‘Nexquant Exchange Ltd.,’ is reachable via multiple domains and offers ‘Nexquant’ and ‘Nexquant Pro’ apps through major app stores.
How the funnel works
BaFin published a detailed breakdown of how comparable schemes typically operate.
It starts with social media ads offering free stock tips or financial education. Interested users are funnelled into WhatsApp groups, where a supposed financial expert shares market analysis and buy recommendations. In this case, that persona is ‘Arno Feldmar,’ supported by an assistant called ‘Clara’ who moderates the chat.
Over several weeks, the operators build trust. They may offer small test credits and allow initial withdrawals to demonstrate the platform’s legitimacy. Members are then introduced to a proprietary token or investment product, marketed as a pre-IPO opportunity with high returns.
Once investors deposit funds, typically via foreign bank accounts or crypto transfers, the pressure to add more money increases. When users attempt to withdraw, the platform imposes conditions such as additional payments for ‘taxes’ or ‘commissions.’ In many cases, BaFin said, withdrawals become impossible and contact persons stop responding.
The regulator noted that the domains hosting these platforms change frequently.
