The British Columbia Securities Commission is warning investors about ‘smart wallet’ apps that can allegedly store a user’s crypto-assets and earn money for depositors.
The apps claim that users will benefit from the smart wallets through automated trading of crypto-assets. However, users do not control the alleged trading, it is actually completed by an artificial intelligence software.
“These apps’ claims of big payouts from some kind of automated crypto-asset trading appear too good to be true,” said Doug Muir, the BCSC’s director of enforcement, in a press release.
Muir says the apps resemble a pyramid scheme by promising investors earnings if they are able to get others to join.
One of the apps, WoToken Wallet, claims that users will receive six to 20 percent earnings if they activate the trading software.
The BCSC says these apps show warning signs of risky investments, and are urging people to be cautious when approaching these apps.