A travel company based in New Zealand and operating in Kiwi has reportedly suffered significant financial losses due to cryptocurrency trading. This comes as the company recently announced its decision to cease operations.
We Are Bamboo, the NZ-based travel agency had reportedly engaged in the active trading of cryptocurrencies using customer funds that were intended for prepaid trips. This investment strategy across multiple platforms has resulted in the company’s bankruptcy.
The director of We Are Bamboo, Colin Salisbury, made investments totaling over USD $2 million (AUD $3 million) using customer funds. These investments were made across multiple cryptocurrency platforms from October 2020 until mid-2022.
All of these investments were lost, further exacerbating the financial troubles faced by the company, as reported by BDO, a major accounting and advisory firm operating in Australia.
Related Reading: Binance Australia Unexpectedly Cut Off From Local Banking System: Here’s More
Additionally, We Are Bamboo incurred a loss of approximately USD $800,000 (AUD$1.2m) when it invested in fraudulent platforms that were later discovered to be nonexistent.
Customers have taken action by lodging complaints with the police. And the investigation has since been handed over to both the Commerce Commission and the Serious Fraud Office.
We Are Bamboo Unable To Provide Customers With Refunds
We Are Bamboo reportedly utilized the “force majeure” clause as a means to reject customer refund requests. The force majeure clause is a contractual provision that excuses parties from fulfilling their obligations in instances of unforeseen and unavoidable events that disrupt regular operations.
The impacted customers belonged from various countries, including the United States, Britain, Canada, and Australia. Liquidators, appointed by BDO, have initiated an investigation into the conduct of We Are Bamboo’s management, directors, officers, and advisors.
This examination aims to shed light on the actions taken by these individuals and entities during the company’s operations.
Additionally, BDO, acting as the liquidator, will evaluate the distribution of the available funds to unsecured creditors. They will also explore alternative avenues for potential recovery.
The loss of customer funds through cryptocurrency trading has caused distress to the affected customers, further intensifying their feelings of disappointment and betrayal. During the liquidation process, BDO received a considerable number of emails from customers, totaling nearly 4,000.
In a statement issued by the company, it read:
Our intentions here are not to play the victim but simply share with you the levels to which this group has gone to ensure our downfall and made it their sole purpose to attack us, our families, our staff, and our customers with the intent to destroy Bamboo.
This incident highlights the critical importance of transparent, accountable, and responsible handling of customer funds.
Surge In Crypto Scams In The Recent Times
According to cybersecurity experts, the cryptocurrency industry is an attractive target for malicious actors due to its nature as a rapidly evolving and growing technology. Despite cryptocurrency being a relatively new trend, perpetrators are employing traditional methods to carry out theft and fraudulent activities.
A variety of recent crypto scams have come to light, including Bitcoin investment schemes, rug pull scams, romance scams or dating app scams, phishing scams, man-in-the-middle attacks, social media cryptocurrency giveaway scams, Ponzi schemes, fake cryptocurrency exchanges, fraudulent employment offers, and flash loan attack schemes, among others.
These scams demonstrate the ever-evolving tactics employed by bad actors to exploit individuals in the cryptocurrency realm. It is crucial for companies to exercise heightened caution when integrating assets like cryptocurrencies into their business operations.
