KITCHENER -- Stratford police are investigating a Bitcoin fraud where the victim allegedly lost nearly $350,000.

Officers received a report of the fraud on Tuesday. According to police, the victim started investing in a company called, later called Coinrally, in September of last year. He said he'd talked to people over the phone and online from various locations around the world.

The victim told police he tried to make a withdrawal from their investment and was told he'd need to pay a deposit before receiving his money. The complainant also said he started getting threats over email demanding his personal information before the company would return his money.

Police believe the entire transaction was fraudulent and the complainant has lost around $348,000.

Police said people shouldn't invest with unknown companies over the internet, especially when they deal in Bitcoin, as the financial transactions can be difficult to trace.