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Germany’s Finance Watchdog Alerts Consumers about CoinBene Recruitment Drive

Germany’s Federal Financial Supervisory Authority (BaFin) recently released a public alert regarding CoinBene.

According to Country’s Banking Act

The country’s financial watchdog said on May 28 that crypto exchange company CoinBene has been engaging the services of freelance cryptocurrency traders who are paid on commission. Bafin clarified that under the Kreditwesengesetz (KWG), or the country’s Banking Act, these digital assets are considered financial tools and investors and traders need to secure authorization before they can trade them.

BaFin also revealed is not registered in Germany and has not secured the right license for trading cryptocurrency assets as demanded by the KWG.

Coinbene Thankful for Concerns

CoinBene had previously addressed questions about its presence in the European country and denied that it hired freelancers. The company said on its official Twitter account that it doesn’t have plans to open an office in Germany or to hire any representatives in the country. They also thanked those who reached out to them to voice their concerns.

There were reports that CoinBene had allegedly covered up being hacked. The crypto exchange firm has denied this and stated that the movement of outgoing funds was due to ongoing maintenance work.

Elementus On The Issue

However, data researchers from Elementus, a blockchain infrastructure company, subsequently discovered that the information regarding the outgoing transactions was in line with activities that typically appear in a hack. However, the researchers also admitted their discovery did not negate CoinBene’s assertions.

While Elementus’ analysts have found no grounds to prove their hacking claims, David Brierley, Howdoo’s CEO, alleged he has lost 18.4 million uDOO tokens ($209,000) and is said to be considering filing a class action suit against CoinBene.

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