Singapore-based financial technology company Six Capital Group is in a midst of a fresh battle after angry investors filed police reports against the firm fearing loss of millions of dollars.
SixCapital, or SixCap as the firm is called, promised returns but stopped making payouts around June, according to a report by Straits Times.
SixCap is involved in web-based strategy game, which works similarly to how trading currencies works: Players purchase one of six types of so-called "Nodes" that represent a different currency — either the U.S. dollar, Singapore dollar, British pound, euro, yen or the Australian dollar.
Over time, those Nodes and their relative values change, and players create a strategy to switch over to Nodes that they think will appreciate in value. As a result, they can end up making profits.
Since early September, users complained online about facing problems cashing out of the game. The company said it was addressing the issue but the situation worsened.
It emailed clients on June 8, saying that OCBC Bank told it in May that its banking accounts could no longer be supported, the report said.
In a September 4 report, the Straits Times said SixCap founder Patrick Teng had blamed the "hiccups" on strict anti-money laundering and know-your-customer requirements at local Singapore banks.
The report pointed out that Six Capital is on the Monetary Authority of Singapore's (MAS) Investor Alert List. That list names firms that "have been wrongly perceived as being licensed or authorized by MAS." SixCap was added to the list in March last year, the Straits Times said.