Beware! Cryptovem 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.
Cryptovem presents itself as some kind of investment and trading platform with a vaguely defined and unusually broad scope – “suited for hedge or mutual fund managers and also Forex, stocks, bonds and cryptocurrency traders”. The people behind this website seem to have thrown out buzzwords in an attempt to fool people who have no experience or knowledge of the financial markets. Fact-checking quickly confirms the suspicions – this is a scam website, and a low-effort one at that.
CRYPTOVEM REGULATION AND SAFETY OF FUNDS
When you visit the website of a legitimate broker you can expect to find clear and detailed information about the company that owns and operates it, where it is based and what regulatory regimes it is subject to. Licensed financial services providers are also required to provide a comprehensive set of legal documentation.
Since the Cryptovem website in no way meets the requirements for a financial services provider in a highly regulated jurisdiction like the UK, we can safely assume that this address is fake. In order to offer such services in the UK, a company must hold the appropriate licence from the Financial Conduct Authority (FCA). However, upon checking the regulator’s database, we do not find Cryptovem on the list of licensed brokers, but on the blacklist of unauthorised websites:
If you want to invest in financial instruments without fear of being scammed, you can turn to some of the legitimate brokers that actually operate from established financial hubs like the UK. These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the FCA. They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.
CRYPTOVEM TRADING SOFTWARE
Cryptovem promises “multiple platform options to cover the needs of each type of trader and investors”. But even the images on the homepage of the website show a simple chart of current asset prices, such as can be obtained for free from the data provider TradingView. After registering an account, we find on the Cryptovem dashboard exactly that – charts without any trading functionality.
But even if Cryptovem had a more convincing platform, that would not make this website credible. Fake brokers use trading software to mislead their victims that their money is really being invested. But this trade is entirely sham.
Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
CRYPTOVEM TRADING CONDITIONS
Cryptovem has neither the legal authorisation nor the necessary technological capacity to offer online trading in financial instruments. Nor can any specific information on the use of this trading facility be found on the website.
Instead of the different types of trading accounts you’ll find on most real brokers’ websites, Cryptovem offers “investment packages” that promise impossibly high returns. These packages start at 500 USD – for a significantly lower amount, you could open a starter account with many licensed brokers, including some of the industry’s leading brands.
Cryptovem also claims to offer cryptocurrency trading and “high leverage”. These claims may serve as further evidence that Cryptovem could not be a licensed broker operating in the United Kingdom. First, the FCA prohibits the trading of crypto derivatives for retail customers. And second, regulated brokers cannot offer high leverage because this creates risks of sudden and excessive losses. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.
CRYPTOVEM DEPOSIT/WITHDRAW METHODS AND FEES
In the Cryptovem deposit menu, we see the following options – PayPal, Paystack, Stripe, Bitcoin and Ethereum. But when we try each of them we find that the only functioning option is to send an amount to the specified crypto wallets.
Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like Skrill, Neteller or QIWI.
There is no information available regarding deposit and withdrawal fees.Since Cryptovem does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfill traded volume conditions.
HOW DOES THE SCAM WORK
There are many scammers lurking on the internet, luring people with promises of easy riches. These scammers arouse the curiosity of their potential victims through online ads, videos, comments and other content on social networks. Often the initial hook is get-rich-quick tips that link to websites and mobile apps of fake brokers or fake investment firms. After clicking on the ad or downloading the mobile app and having given their contact details, the victims are usually swiftly called by fraudsters presenting a concrete “investment proposal”.
These scammers are very aggressive and often even try to persuade the victims to allow them to take control of their computer remotely in order to make certain money transfers. The fraudsters also try to convince the victims to invest increasingly higher amounts of money. They also make promises of repayment in exchange for one last money transfer. This is a technique to collect even more money from their victims. When you try to withdraw your money, your request is blocked by hidden conditions and huge fees. Fraudsters can also simply disappear because they hide behind fake names and offshore companies.
WHAT TO DO WHEN SCAMMED
First of all, it is important that you do not try to recover your money by trusting people who claim to offer such a service for an upfront fee. These are also 100% scammers. If you used a credit or debit card for the transactions to the scammers, you could ask for a chargeback. But such a claim could be disputed if you provided the scammers with a copy of an ID or proof of address. Scammers usually get their victims to use cryptocurrencies that don’t allow refunds. In any case, it is advisable to inform the relevant financial authorities in your country and spread the word online to warn others not to fall into the same trap.