The Federal Financial Supervisory Authority in Germany, more commonly referred to as BaFin, has published a statement on its website this Friday, alerting the public to the fact that Cannabis Software, Cannabis Millionaire and Weed Millionaire are operating in Germany without the required authorization.
Specifically, the warning states that Cannabis Software is reaching out to potential customers via email. It operates via its website www.thecannabisoftware.com and offers software called “Cannabis Stock Official App,” which is a “powerful, automated trading software ” that displays lucrative trading opportunities.
Although the URL doesn’t appear to be active anymore, or at least, this Editor can’t access the website, BaFin states that the website claims that the app allows automatic and manual trading in stocks of companies that use cannabis in the manufacturing of their products. It also alleges that users of the software earn more than $7,000 in profit every day.
Beware of Platforms Promising Outrageous Returns
One common tactic of scammers is to promise outrageous returns in order to trick investors into believing that have a big chance to make a profit. However, a common rule of thumb suggested by regulators is – if it sounds too good to be true, it probably is.
Cannabis Millionaire, on the other hand, advertises under the anonymously registered domain cannabismillionairetradeapp.com. The entity also tries to solicit business from residents of Germany via email.
Cannabis Millionaire uses the domain as an advertising portal for undisclosed brokers in English. Via links on its website, it directs clients to brokers that offer contracts-for-differences (CFDs) on equities, and clients can use the entity’s CFDRequest trading software.
Weed Millionaire, which operates via the website weedmillionairepro.com advertises trading in shares of companies related to cannabis. According to the warning from the German regulator, residents are reportedly receiving automated proposals to trade Penny Stocks (cents), which it claims are 99.7 percent successful.
The above three companies which have been flagged by the German watchdog do not specify their legal form or their registered office, according to the warning which was published today.