Beware! Crypto800 is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
We ask how can a broker named Crypto800 be a legitimate source of crytpocurrency trading conditions? There is close to nothing that is appealing about it, and as you will see, this same below average performance transcendence virtually every other aspect of this broker.
To register the user must follow a vary easy and familiar step by step process, which, upon its completion, led to a familiar scammer-based user dashboard. There we came across a common problem with the alleged trading platforms, and as a result we cannot get any trading conditions out of the terminal.
The broker is a cryptocurrency only broker, with a leverage capped at 1:5, which is common for crypto assets.
The website is exclusively in English. However, the user area is available in more than a dozen languages: English, Arabic, Bulgaria, Chinese, Czech, Russian, Spanish, Croatian, German, French, Italian, Portuguese, Japanese, Polish, Romanian, Vietnamese, and Greek. Discrepancy between the languages is a sign that this broker might be a scam.
CRYPTO800 REGULATION AND SAFETY OF FUNDS
The Terms and Conditions reveal key information that the broker is based in the Marshall Islands, a country who is well known among the shady part of the forex industry.
This is in fact the only mention that the broker is located somewhere. Thus we can safely conclude that Crypto800 is NOT LICENSED, and therefore is not a safe environment for users’ investments!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
Be aware that the broker will use your personal information in order to protect itself against liabilities! In other words, your won personal information may be used against you!
Next, Crypto800 may share your client personal data with a umber of undisclosed third parties. What concerns us from the below added snap are the business partners and merger/acquisitions. Their positions and nature have not been detailed, and so are by definition suspicious.
CRYPTO800 TRADING SOFTWARE
The MT4, for one, was under the name of techinvest, which is undoubtedly another scammer company or other similar entity. So, the MT4 here does not belong to the broker at hand. The webtrader turned out to be a MT4, which had servers, again, for techinvest.
There is no other trading platform that we can access through the user dashboard. As such, there is nothing left but to conclude that there is no trading platform.
Nevertheless, there are certain clauses that we will mention.
The company has the right from time t time to change the or remove the trading software, without notice, without bearing any responsibility for the consequences its actions may have on clients.
The Terms and Conditions reveal that there are fees and charges attached to the usage and the opening/closing of positions in the trading software. Of course, what these commissions are, is a question that has been left unanswered.
CRYPTO800 DEPOSIT/WITHDRAW METHODS AND FEES
Deposits are done via Tyconx Deposit Virtual Terminal, credit card, bitcoin, litecoin, and bitgold. The minimum deposit is €1000, which is way too high; four times the average requirement.
Withdrawal info is very limited. So much so, that we could not get a hold of any specific processing times or minimum amounts.
Note that there are both undisclosed depositing and withdrawal fees!
All fees and taxes that are owed to the broker will immediately be deducted from a user’s account after the closure of a transaction.
In case of a charge-back, the broker may close all open trading positions. Essentially, the safest way to get your money back in case of fraud is manipulated by the broker so that, either way, you lose.
What’s more, the brokers will actually seek reimbursement from a user who has issued a charge-back request. One way the broker does so is to directly charge your credit card, which it cannot do without a client’s permission.
Again in connection to this, Crytpo800 will not be liable for any loses caused by its insolvency, or that of the institutions where the client’s money is held.
The following clause is the cherry on top of the cake. It serves as proof that the user’s funds are at risk the moment they get invested in Crypto800. In case the money of a user is held by third parties, he or she might not be able to receive all his/her money back.
Dormant accounts, those that have not registered any activity whatsoever for 30 days, will be charged with a $60 monthly fee.
However, and this was a surprise, if a user wishes to get her money back from all those dormant account fees, she will have the chance to do so, given that she resumes her trading activity within 12 months.
The T/C where the previous dormant account fee is, has revealed a different inactive account commission. This one is activate after 90 days of account dormancy and will charge $25 per month. We are unsure as to the connection between these two dormant account fees; only that this inconsistency is yet another subtle proof that Crytpo800 is not to be trusted.
Of course the broker is not to be held responsible for anything that it causes to a user, which will be a inevitable financial loss. The legal documents are overlaid with indemnification clauses, each specifying a different situation in which the broker will not be held liable. Here is an example:
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.