Germany’s financial regulator, BaFin, has issued a public warning against Axionto, a company allegedly promoting unlicensed investment services through WhatsApp. The firm is reportedly targeting German
investors with financial recommendations shared in private chats and group
messages.
Suspicious Claims and Missing Company Details
The investment tips circulating in these WhatsApp
groups are allegedly attributed to “Professor Lorenzo Riccardi.” However, BaFin
said there is no information confirming the identity or existence of such a
person.
Further raising concerns, Axionto’s
website, axionto.com, provides no legal notice, company structure, or registered
business address. BaFin noted that this lack of transparency is a red flag for
any firm offering financial services.
Under German law, companies must obtain proper authorization
from BaFin to provide financial, investment, or crypto asset services. Axionto
does not appear in the regulator’s database of authorized firms, suggesting the
company is operating illegally.
WhatsApp and Social Platforms Draw Scrutiny
The case adds to a growing list of firms using
encrypted messaging apps to bypass regulatory oversight and reach retail
investors. BaFin continues to monitor such activity and encourages the public
to report suspicious financial solicitations.
BaFin advised consumers to avoid dealing with
unlicensed firms and to conduct due diligence before acting on unsolicited
investment advice, especially when promoted through informal or anonymous
channels like WhatsApp.
Expect ongoing updates as this story evolves.
Germany’s financial regulator, BaFin, has issued a public warning against Axionto, a company allegedly promoting unlicensed investment services through WhatsApp. The firm is reportedly targeting German
investors with financial recommendations shared in private chats and group
messages.
Suspicious Claims and Missing Company Details
The investment tips circulating in these WhatsApp
groups are allegedly attributed to “Professor Lorenzo Riccardi.” However, BaFin
said there is no information confirming the identity or existence of such a
person.
Further raising concerns, Axionto’s
website, axionto.com, provides no legal notice, company structure, or registered
business address. BaFin noted that this lack of transparency is a red flag for
any firm offering financial services.
Under German law, companies must obtain proper authorization
from BaFin to provide financial, investment, or crypto asset services. Axionto
does not appear in the regulator’s database of authorized firms, suggesting the
company is operating illegally.
WhatsApp and Social Platforms Draw Scrutiny
The case adds to a growing list of firms using
encrypted messaging apps to bypass regulatory oversight and reach retail
investors. BaFin continues to monitor such activity and encourages the public
to report suspicious financial solicitations.
BaFin advised consumers to avoid dealing with
unlicensed firms and to conduct due diligence before acting on unsolicited
investment advice, especially when promoted through informal or anonymous
channels like WhatsApp.
Expect ongoing updates as this story evolves.
This post is originally published on FINANCEMAGNATES.
