The Lithuanian Consulate to Sri Lanka has warned of fraudulent cryptocurrency advertisements allegedly linked to Lithuanian entities and prominent public figures, including Sri Lankan Prime Minister Harini Amarasuriya. 

Issuing a statement, the Lithuanian Consulate expresses its deep concern regarding recent reports of such fraudulent cryptocurrency advertisements circulating on social media platforms. 

The Lithuanian Consulate said these deceptive campaigns, identified by the Prime Minister’s Office of Sri Lanka, are being operated by foreign entities with the intent of misleading Sri Lankan citizens.

It has been further reported that these fraudulent advertisements originate from accounts allegedly linked to Lithuania, raising concerns over their transnational nature and the exploitation of digital platforms for financial scams, the Consulate further said.

The Lithuanian Consulate further outlined the following measures that have been taken to address the matter;

1. Engaged with the Embassy of Lithuania to officially convey the concerns raised by Sri Lankan authorities and seek their guidance.
2. Requested formal clarification from relevant Lithuanian authorities regarding the alleged connections to fraudulent activities.
3. Communicated with Sri Lankan government agencies to express the Consulate’s readiness to cooperate in any investigations.
4. Called for enhanced international cooperation between Sri Lankan and Lithuanian authorities to identify and mitigate the fraudulent activities.
5. Urged social media platforms, particularly Meta (Facebook’s parent company), to take stronger measures to prevent the spread of fraudulent advertisements.

Commenting on the matter, the Director of the Lithuanian Consulate to Sri Lanka, Kanchana Kodituwakku said the Lithuanian Consulate strongly condemns any fraudulent activities that seek to exploit the trust of Sri Lankan citizens. 

“Upon receiving reports of these deceptive cryptocurrency advertisements, we acted swiftly to bring the matter to the attention of the Lithuanian Embassy and relevant authorities. The Consulate remains fully committed to supporting efforts that protect Sri Lankan and Lithuanian interests and will continue to work towards enhanced collaboration between regulatory and enforcement agencies. We also urge digital platforms to take decisive action against fraudulent content to prevent further exploitation of their users,” the Consulate Director added, issuing an official statement. 

The Lithuanian Consulate to Sri Lanka added that it will continue to monitor developments and provide necessary updates in coordination with Sri Lankan and Lithuanian authorities. (Newswire)

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The Central Bank of Sri Lanka (CBSL) has issued a warning to the public on the risks of using and investing in Cryptocurrency, also commonly referred to as “crypto”.

Issuing a statement, the CBSL stated that it wishes to reiterate the significant risks associated with using and investing in cryptocurrency, considering the recent public inquiries and the developments observed relating to cryptocurrencies.

Cryptocurrency is a type of virtual currency that is generated by private entities and not by a monetary authority of a country. The term ‘cryptocurrency’ refers to a digital representation of value that is implemented using cryptography and Distributed Ledger Technology (DLT) or similar technology. It is observed that crypto-trading is widely promoted by certain entities as a profitable investment.

However, recent complaints received by CBSL have shown that members of the public have incurred heavy losses on their crypto-investments and in certain instances have also been subject to financial scams conducted through crypto-related schemes, the bank stated.

The CBSL stated that it has already highlighted, through Press Releases issued in 2018, 2021, and 2022, the significant financial, operational, legal and security related risks as well as customer protection concerns posed to users of cryptocurrency. These risks and concerns have already materialised with the recent failures of various global institutions engaged in cryptocurrency businesses, and the collapse and loss of value of some cryptocurrencies. The public is reminded that cryptocurrencies are unregulated investment instruments which are not recognized as an asset-class in Sri Lanka. Further, cryptocurrencies are not considered as legal tender in Sri Lanka and have no regulatory safeguards relating to their usage in the country. As per the Directions No. 03 of 2021 under Foreign Exchange Act, No. 12 of 2017, Electronic Fund Transfer Cards (EFTCs) such as debit cards and credit cards are not permitted to be used for payments related to cryptocurrency transactions. Cryptocurrency operates through informal channels, and therefore, it does not contribute to the national economy and can also cause a loss of valuable foreign currency to the country.

The public is also warned of the growing number of financial scams operating with the promise of high returns based on crypto-investments. These scams include deceiving individuals and obtaining money from them with the promise of providing a high return by investing money in cryptocurrency, as well as deceiving individuals to invest in fraudulent cryptocurrency projects. Such scams circumvent traditional regulatory and legal protection mechanisms, resulting in individuals losing their hard-earned money, it added.

The CBSL strongly advised the public to safeguard their hard-earned money and not to invest or engage in any cryptocurrency scheme offered through the Internet, other forms of media, or directly by any persons. The public is also notified that CBSL has not issued any licence or authorized any individual or business to operate schemes involving cryptocurrency, and has not authorized any Initial Coin Offerings (ICOs) or any variant of it, cryptocurrency mining operations, cryptocurrency exchanges, deposit-taking or custody services related to cryptocurrency or any cryptocurrency investment advisory service.

The CBSL also urged those who are engaged in promoting and facilitating the promotion of investing and trading in cryptocurrency to refrain from such activities, considering the wide range of risks associated with cryptocurrency and the resulting hardships to the public, including financial losses. (NewsWire)

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