BaFin Investigates Fides Ventures and Nexquant for Unauthorized Business

BaFin News & Warnings

Filed March 16th, 2026

Detected March 16th, 2026

Summary

BaFin is investigating Fides Ventures and Nexquant for offering financial and cryptoasset services without authorization. The companies are allegedly using WhatsApp groups and a crypto exchange to solicit German investors for unauthorized financial instruments and cryptoassets.

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What changed

The German Federal Financial Supervisory Authority (BaFin) has initiated an investigation into "Fides Ventures" and "Nexquant" for conducting unauthorized financial and cryptoasset services. Fides Ventures, also operating as "Fides Ventures Business School," allegedly uses WhatsApp groups to promote an "FIVS token" and directs investors to the "Nexquant" crypto exchange. Nexquant, also known as "Nexquant Exchange Ltd.," is reportedly offering financial and cryptoasset services without BaFin's required authorization. Both entities are not supervised by BaFin, and their operations target German investors through social media, messaging apps, and dedicated websites and mobile applications.

This action highlights a common fraudulent scheme where unknown providers use social media and messaging platforms to build trust with potential investors, eventually leading them to unregulated trading platforms or apps. Investors are enticed with promises of high profits and encouraged to deposit funds, often through foreign accounts or cryptoassets. BaFin's investigation serves as a warning to investors to exercise extreme caution and verify the authorization status of financial service providers. Regulated entities should be aware of these schemes to prevent facilitating or being associated with such unauthorized activities.

What to do next

Verify authorization status of all financial and cryptoasset service providers before engaging.
Report suspicious investment solicitations or unauthorized activities to BaFin.
Educate clients and employees about common fraud schemes involving social media and messaging apps for investment promotion.

Source document (simplified)

Erscheinung: 16.03.2026 | Topic Unauthorised business, Consumer protection WhatsApp groups: BaFin investigates “Fides Ventures” and “Nexquant”

According to information available to the Federal Financial Supervisory Authority (BaFin), “Fides Ventures” is using WhatsApp groups and chats to contact German investors. The company, which claims to be based in the US, also operates under the name “Fides Ventures Business School”. The unknown provider advertises by promoting a so-called “FIVS token”, claiming that the token can be obtained on the cooperating crypto exchange “Nexquant”. The crypto exchange, also operating under the name “Nexquant Exchange Ltd. ”, is being used to offer financial and cryptoasset services without the required authorisation. Neither provider is supervised by BaFin.

The initiators of these WhatsApp groups claim to be from a US company called “Fides Ventures” or “Fides Ventures Business School” and refer to their website fidesventuress(.)com.

Using WhatsApp groups and chats, “Fides Ventures” passes on recommendations for purchasing of financial instruments and cryptocurrencies that can be traded on the “Nexquant” platform. Investors are enticed to register with the “Nexquant” platform, which can be accessed via the domains nexquantexs(.)com and nexquantex(.)com. Investors are also encouraged to download the “Nexquant” and/or “Nexquant Pro” apps from one of the major app stores and to use this app to trade in various cryptoassets.

The following is an example of how business is initiated as observed in comparable cases:

Advertisements are placed on social media offering free stock recommendations or lessons on how to trade shares, for example. These advertisements feature well-known business experts and licensed institutions. Interested investors are invited to contact the creators of the advertisements on the messaging service WhatsApp and join a WhatsApp group.
In these WhatsApp groups, a supposed business expert shares their knowledge on financial topics. This “expert” is accompanied by an assistant who moderates the chat and personally serves as the contact person for group members. In seminars or lessons, the expert talks about supposedly lucrative investment models and recommends that members purchase certain shares.
The group initiators seek to build trust over several weeks. Eventually, they usually present an innovative financial investment system that can supposedly generate considerable profits. Sometimes the initiators advertise their own cryptotoken, which members can buy before it goes on sale to the public.
Marketing campaigns prompt group members to take part in daily check-in promotions and prize draws, for example to win crypto or tangible assets.
Interested investors are directed to register with an external online trading platform, an in-house trading program or an app in order to trade in various financial products recommended by the initiator of the WhatsApp group. It is usually claimed that only a limited number of users will be able to access these trading platforms.
In some cases, users are encouraged to use the online trading platform or app on a trial basis. The group initiators sometimes provide financial resources for this trial period. To build trust, they initially allow payouts of small amounts.
Deposits are usually made through a foreign account or via payments in the form of cryptoassets.
As time goes on, the pressure on investors to make additional deposits increases. Payouts are subject to conditions or are no longer possible at all.
The availability of the websites hosting the trading platforms changes frequently. Anyone providing financial, investment or cryptoasset services in Germany may do so only with authorisation from BaFin. However, some companies offer these services without the necessary authorisation. Information on whether a particular company has been granted authorisation by BaFin can be found in BaFin ’s database of companies.

BaFin is issuing this warning on the basis of section 37 (4) of the German Banking Act (Kreditwesengesetz – KWG) and section 10 (7) of the German Cryptomarkets Supervision Act (Kryptomärkteaufsichtsgesetz – KMAG).

Please be aware:

BaFin warns consumers about investment fraud being committed via WhatsApp and Telegram.

You can view BaFin ’s current warnings about companies operating without the required authorisation and find out how to protect yourself from fraudsters on the financial market in the “ Recognising financial fraud ” section of our website.

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