The German financial regulator BaFin has launched an investigation into Aurealis Capital and Minexra for allegedly offering unauthorized financial and crypto services through WhatsApp groups aimed at German investors. According to BaFin, neither company holds the required regulatory approval to provide such services in Germany.

Aurealis Capital, a US-based entity reportedly operating under the name Aurealis International Group Ltd, and Minexra have reportedly been using WhatsApp messaging to engage investors and promote trading on Minexra’s platform.

Investment Lures Move to Messaging Apps

BaFin reports that the companies recruit investors through social media advertisements, inviting them to join WhatsApp groups where supposed financial experts recommend trading strategies and cryptocurrency purchases.

Inside these groups, facilitators build rapport with members through seminars and daily interactions before encouraging them to register with the Minexra trading platform, which is accessible through a dedicated website or app.

BaFin now warns that these practices violate German regulations requiring proper authorization for financial and cryptoasset service providers. The regulator emphasizes that websites hosting such platforms often change addresses, complicating oversight and increasing risks for investors.

German rules stipulate that anyone offering financial or crypto asset services must hold appropriate authorizations. Using WhatsApp, they share buying tips for financial instruments and cryptocurrencies exclusively traded through the Minexra platform, promoting opportunities that BaFin warns may not materialize.

How the WhatsApp Investment Trap Unfolds

The process typically begins with attractive social media ads promoting free stock tips or trading lessons. These posts often display images of respected financial figures or institutions and encourage viewers to make first contact via WhatsApp.

Once added to a group, investors encounter a dynamic pairing: a “business expert” dispensing advice on lucrative trades, and an assistant who fosters engagement within the chat. Seminars and discussions are designed to build trust—often over several weeks—before group leaders unveil their main proposal: innovative investment strategies or digital tokens pitched as high-return opportunities.

More warnings: BaFin Warns Against Investment Offers Shared in WhatsApp Groups by Unlicensed Firm

Members become further involved through daily check-ins, contests, and exclusive offers, sometimes getting early access to new crypto tokens. Eventually, users are directed to register on Minexra’s trading platform or a custom investment app. Participation is often limited, according to organizers, heightening the sense of exclusivity.

Regulatory Risks and Investor Warnings

Trial runs may follow, with small, easily withdrawable profits intended to establish credibility. Deposits are made through foreign accounts or cryptocurrency, bypassing German banking safeguards.

Over time, organizers increase pressure for more deposits while making withdrawals difficult or impossible. Platform websites may frequently vanish, adding another layer of uncertainty.

BaFin reiterates that providing financial, investment, or crypto asset services in Germany requires formal authorization. The watchdog urges investors to verify authorization before engaging with any financial provider.

Source: Finance Magnates