Estonian police have confirmed investigations have been launched into the closures of peer-to-peer lenders Envestio and Kuetzal in the country.
P2P lender Envestio’s website is no longer accessible and investors have been unable to reach the platform to access funds, while concerns have emerged over who owns Kuetzal and who its borrowers really are.
“Estonian police has started two criminal investigations regarding both crowdfunding platforms,” Estonia’s police and border guard board said in a statement.
“Our first objective in the investigations is to find out whether it was a fraud and the platforms were created with the purpose of deceiving people, or the websites were closed due to a bad investment.
“Estonian police are cooperating with police within the European Union in order to simplify the process of making an application regardless of where you are located.
“You can turn to the police in your home country, and act according to the instructions you receive.
“You will have to get in touch with Estonian police directly if you are located outside the European Union.”
It added that reporting issues to the Estonian officials will be the fastest route.
The European Crowdfunding Network (ECN) confirmed last week that it was investigating the platforms and is now advising investors to assume that there is a criminal element involved.