‍Introduction

The Fraud Prevention Policy is crucial to ensure thesecurity and integrity of our services and products involving virtual assets,which also includes risk management rules and procedures for fraud prevention:

The purpose of this Policy is to establish guidelines andprocedures to prevent and mitigate fraud in our operations as a Virtual AssetService Provider (VASP).

This policy applies to all employees, contractors, agentsor other persons, working on behalf of the Company and covers all aspects ofour services and operations.

For the purposes of this Policy, fraud means the act ofdishonestly or unlawfully obtaining or attempting to obtain an advantage orfinancial gain through deceptive practices within the framework of our servicesand operations.

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Risk Management Procedures

The Company implements robust customer due diligenceprocedures for all customers in accordance with applicable laws and bestpractices.

The Company continuously monitor transactions for unusualor suspicious activities using advanced fraud detection tools.

All employees are required to report any suspiciousactivities.

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Red Flags

The Company establishes a non-exhaustive list of redflags indicating the features of potential fraudulent activities and provideguidance on how to respond to these factors, described below in this Section.

The Company always conducts Know Your Customer procedures(KYC) to duly and properly identify and verify its users’ identities inaccordance with the applicable laws and best practices. Users are required topromptly update their personal information when changes occur.

The Company investigates any accounts, transactionsand/or operations, engaged in suspicious or manipulative trading activities.

The Company terminates the provision of its services,transactions and other operations, if its user is involved in any type offinancial manipulations, wash trading, or spoofing.

The Company terminates the provision of its services,transactions and other operations, if its user provides false or misleadingidentity information until the identity verification of such a user iscompleted correctly.

The Company encourages its users to report all phishingattempts to our support team to the following e-mail address: aml@valeto.co forour immediate investigation.

The Company encourages its users to enable two-factorauthentication (2FA) for their account security.

The Company implements strong cybersecurity measures toprotect customer data and assets, including encryption, regular securityassessments and so on.

Users who provide false or misleading identityinformation may have their accounts suspended until identity verification iscompleted correctly.

Multiple accounts under the same identity information, aswell as frequent and large deposits from unverified or high-risk sources willbe flagged for review.

Cryptocurrency deposits with unknown origins or uncleartransaction histories will be investigated.

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Reporting Fraud
4.1 The Companyencourages users to report any suspicious activity, fraud and/or phishingattempts immediately to our support team to the following e-mail address:aml@valeto.co for our immediate investigation.
4.2 The User should comply with the following clear instructions (steps) forreporting any suspicious activity, fraud and/or phishing attempts:
1) In the subject line of the email, use a clear and descriptive phrase, suchas "Fraud Report" or "Phishing Attempt."
2) In the email body, the User should provide the following information:
a) His/her full name and username on the platform (if applicable).
b) A detailed description of the fraudulent or phishing activity the Userencountered, including any relevant dates, times, and affected accounts.
c) Any and all evidence and/or screenshots related to the incident (ifavailable).
3) The User should not include any sensitive personal or account information inthe email, such as your password or account credentials. The Company will neverask for such information via email.
4) After composing the email, the User should click the "Send" buttonto submit your report.
5) The User will receive an email confirmation acknowledging receipt of his/herreport. Our team will review the information provided and, if necessary,initiate an investigation or ask for more details.
4.3 The Company takes reports of fraud and phishing attempts seriously and arecommitted to safeguarding our users from such activities. Such reports willhelp us maintain a secure and trustworthy trading environment.
4.4 In case of any further questions or concerns, the User should reach out toour support team for assistance to the following e-mail address: aml@valeto.co

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Regulatory Compliance

The Company ensures that its services, products andactivities comply with all applicable local and international regulations.

The Company regularly reviews and updates its complianceprocedures to stay in line with evolving legal requirements.

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Security Measures

The Company maintains a robust security infrastructure tosafeguard user data and assets.

All users should keep their sensitive information secureand report any security concerns promptly to our support team.

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Dispute Resolution

The Company has clear process for handling fraud-relateddisputes.

The Company conducts thorough investigations intoreported fraud-related issues and communicates with affected users.

The Company establishes a clear plan for promptlycommunicating with users who are affected by fraudulent activities, includingnotifying them of the situation and any necessary actions they need to take.

The Company establishes clear steps to resolvefraud-related disputes in a fair and efficient manner.

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Consequences of fraudulent activities

The Company terminates the provision of its services andproducts in cases of severe or repeated fraudulent activities.

The Company also pursues legal actions againstindividuals engaged in criminal or fraudulent acts.

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Staff Training

The Company regularly educates all employees onrecognizing and preventing fraud, and ensure they are up to date with thelatest fraud trends and prevention techniques.

Employees who suspect or detect fraudulent activitiesmust report them immediately to the Compliance Department.

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Regular Updates

The Company reviews and updates this Fraud PreventionPolicy periodically to adapt to changing fraud risks and regulatoryrequirements.

The provisions and procedures, specified in the Company’sAML Compliance Policies will apply to the fraud prevention procedures mutatismutandis.

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