An Indian bitcoin-trading website is being criticized for its ability to “trick” investors by converting BTC to USD without providing an exchange rate.
The platform, which operates from Mumbai, is selling the BTC-USD-USD to USD conversion for a mere USD 4, or just USD 0.50.
“This is a great way to convert your BTC to fiat, or USD to BTC,” reads the site’s official disclaimer.
The service is now closed for maintenance.
A spokesperson for the company told Quartz that the conversion was done “on the spot.”
The site claims to be a “one stop shop” for buying and selling bitcoins, but it has not specified how many BTC-to USD conversions it does.
Its users are also required to provide their own bank details and a QR code to access their wallets.
The website was shut down last week by the Mumbai Stock Exchange after regulators found it had violated rules on bitcoin trading, and has since been shuttered by the police.
Bitcoin exchanges and brokers are also often targeted by hackers.
The US government has issued guidelines for virtual currencies and exchanges, including guidance that they should be regulated as securities.
However, bitcoin-related companies are not required to comply with these regulations, and a recent ruling by the US Federal Trade Commission found that exchanges and trading platforms are not responsible for “fraud, misrepresentation, or false advertising.”
The Bitcoin Foundation, a non-profit that promotes bitcoin and its underlying technology, told Quartz it is “disappointed that such a platform exists,” adding that the platform “would not have been able to operate as a legitimate Bitcoin exchange without the help of the police.”
Bitcoin’s price has fallen by over 50 percent since its peak on August 6, and there is a large market of people who have invested in bitcoins.
