The Alberta Securities Commission (ASC) and Financial Consumer Services Commission of New Brunswick (FCSCNB) have issued investor alerts against a suspected crypto investment scam called “CanCap.”
The suspected scam created false endorsements, such as a connection to the Government of Alberta and an ad featuring a fake CBC news article with an image of Prime Minister Justin Trudeau, according to the ASC.
The fake article purports that Trudeau is responding to U.S. tariffs by endorsing an investment program involving digital currencies. The ASC’s investigation revealed that the CanCap scam is associated with several other websites.
“Neither CanCap nor any person or company associated with these websites are registered to facilitate the buying or selling of investments, or to provide advice in relation to investments, in Canada,” the ASC said.
The alleged fraudsters also created another fake news article claiming that Premier Susan Holt is endorsing the cryptocurrency trading platform, the FCSCNB said. The fake article looks like it is from Telegraph-Journal, the New Brunswick newspaper.
It falsely claims that CanCap is supported by the New Brunswick provincial government and backed by the Bank of Canada’s digital currency, which the central bank shelved in September. It even includes screenshots of falsified bank statements showing fictitious earnings from the platform.
“The uncertainty that the U.S. tariffs place on our economy is causing some New Brunswickers increased anxiety and concern about their financial security,” Marissa Sollows, the FCSCNB’s director of communications and public affairs, said in a statement. “Scammers are taking advantage of the situation, preying on individuals when they are at their most vulnerable.”
The allegedly fraudulent firm should not be confused with CanCap Group, a privately-owned Canadian financial services company.