New Zealand's Financial Markets Authority (FMA) issued a "suspected scam" warning against 9XProfits on October 6th. The regulator's alert specifically cited concerns over unregistered securities offerings. This entity promises high returns, with claims reaching up to 300% over a 200-day period.
The FMA explicitly flagged 9XProfits for securities fraud. New Zealand law requires all financial service providers to register with the Financial Service Providers Register (FSPR). This registration ensures oversight and adherence to consumer protection standards. 9XProfits operates outside this framework, directly pitching high-yield investment plans to local residents without legal standing.
9XProfits began operating in 2023, promoting an investment model based on supposed artificial intelligence (AI) trading bots. The company claims investors can earn up to 300% profit within 200 days. Such figures are characteristic of Ponzi schemes, where early investors are paid with funds from later participants. Legitimate trading operations carry significant risk disclosures, none of which appear in 9XProfits' solicitations.
To project an image of legitimacy, 9XProfits displays incorporation certificates from the United Kingdom, the United States, and New Zealand. These documents provide little assurance of actual business operations or regulatory compliance. Registering a shell company costs only a few hundred dollars. Scammers frequently use these filings to create an illusion of corporate substance, distracting from their lack of actual financial regulation or transparent business practices.
Web analytics firm SimilarWeb reported in September 2023 that 9XProfits drew significant traffic from the UK, accounting for 22% of its visitors. Australia contributed 18% and Poland 15%. The UK's Financial Conduct Authority (FCA) banned the marketing of multi-level marketing (MLM) cryptocurrency investment schemes on October 8th, 2023. This prohibition came two days after the FMA's warning, suggesting a coordinated regulatory response to such operations. The FCA's ban specifically targets business models that promise high returns from crypto assets through recruitment incentives, a common structure found in schemes like 9XProfits.
Victims often report losing their initial investments and any promised returns. Funds are typically routed through multiple accounts and jurisdictions, making recovery efforts challenging. Regulators worldwide consistently advise extreme caution with any investment promising guaranteed high returns, particularly those involving complex, opaque "AI" trading strategies or requiring recruitment of new investors.
The FMA encourages anyone approached by 9XProfits, or who has invested money with the entity, to contact its enforcement team directly for guidance.