When Bullexo first launched, the website seemed comprehensive and good-looking – which is unusual with a lot of trading and investing sites as they can often appear clunky and dated. But, it quickly became apparent that all was not as it seemed. The broker site has since failed to prove its legitimacy and it is clear that the Bullexo trading platform is just one of many trading scams that are out there. 

At WRS, we’ve worked with clients who have lost money through Bullexo scams, with their journey similar to a lot of other trading scams we have experience in recovering funds for. Here, we look at 3 things you should know about the Bullexo trading platform and how we helped clients affected by the scam. 

Appearance Isn’t All That It Seems

Bullexo is an example of an ever-growing trend where well-designed and attractive trading and broker websites are operated by scammers. The design of the Bullexo trading platform is one which looks sophisticated, which to someone who is new to trading or investing can provide an aura of trustworthiness. It does a good job of appearing legitimate, but when it comes to the important aspect, which is the broker services that it is meant to provide, it’s here where the broker begins to show signs of illegitimacy. 

It’s easy to register your details on the Bullexo trading platform and shortly after, you’re then redirected to your depositing wallet. This ease of registration and almost immediate redirection to deposit are just two of the more common signs of a trading scam. You can then access a web trader which is where you will find the available trading assets, such as ETF, cryptocurrencies and Forex, but there is no mention of the available commissions or the ability to choose an account type as, upon sign up, you are only able to access one type. To an inexperienced trader, this will all seem fairly straightforward, however, these tactics are synonymous with trading scams. 

The Bullexo Trading Platform Is Unregulated

On the Bullexo trading platform, there is no indication that it is regulated. Unlike other platforms, where you might see logos of regulatory bodies and links to these, there is nothing. Previous users have noted seeing logos of the Grenadines Financial Services Authority, which doesn’t hold any regulatory power over the FX market, so this information is deceptive. In the T&Cs, it was also found that the broker doesn’t offer services to residents within the Grenadines, which is another red flag in terms of this being a scam. 

The FCA notes that the Bullexo trading platform is unauthorised and warns against trading with this broker. Not only is Bullexo untraceable, but most deposits made on the platform are likely to be lost, along with your personal information and details. 

Beware Of The Deposit and Withdrawal Methods

The Bullexo trading platform will only accept deposits in the form of bitcoin – this should be a huge indicator that Bullexo is a scam platform. There is no legitimate reason for a broker to urge you to make a deposit in bitcoin or crypto only and it is unclear as to whether the funds will ever appear within the wallet. The reason why scammers prefer this method of deposit is that the transaction is essentially untraceable and irreversible, or so investors may think. Here at WRS, we’ve been able to successfully trace and recover funds lost through Bullexo, so if you have fallen victim to a Bullexo scam, contact us today.  

In terms of withdrawal, the only option is through bank transfer, however, this isn’t made clear. When clients go to the withdrawal dashboard, they are then told of bank fees and commissions which will be applicable to their withdrawal, but there is no further information provided anywhere on the site. 

How Does The Bullexo Trading Scam Work?

The Bullexo trading scam works similarly to other trading scams. Although there has been an increase in the number of different trading scams that are circulating, there is actually little difference between the complexities of each scam – they all essentially use the same principle. 

The broker, in this case Bullexo, will attempt to gain the attention of investors and traders through ads or direct contact. Then, they will be pushed to invest on the platform. The goal for most trading scams is to only get the user to invest once and then after this, not only have they gained their personal information, but a deposit as well. Any further investments are seen as a bonus. Sometimes, the client will see a small profit gain, which only then encourages and motivates them to invest more. 

How WRS Have Helped Clients Of The Bullexo Trading Scam

The journey in which our clients have been taken on with Bullexo trading scams is very similar to other trading and investment scams we have worked on. The clients have seen a social media advertisement from “Wixi Crypto Trading” which offers a cryptocurrency-based trading platform and the promise of very high returns. 

We’ve investigated the WhatsApp correspondence between the victims and Bullexo trading platform, although the preferred contact is through untraceable telephone calls. These messages show that one client was coerced into sending funds to the scammers via cryptocurrency. As to be expected, the Bullexo representatives appeared to be extremely friendly, sincere and helpful, explaining exactly how to place “trades”, withdraw crypto, and navigate cryptocurrency exchanges & wallets. A lot of the technical stuff that traders may not be familiar with is usually done via screen-sharing software such as Anydesk, as was the case here.

The rest of the scam process was also fairly similar to what we see with scams, with the client’s supposed profits reaching $328,000. Unfortunately, when they decided to try and withdraw funds, they were initially told the funds were stuck in the blockchain (this would never happen), later being told they are also being held in escrow and will be available as soon as more funds are sent to them.

Initially, it might seem as though there is no getting your funds back after a Bullexo scam. But, here at WRS we’ve been successful in recovering funds for clients who have fallen victim to scams on the Bullexo trading platform.

What To Do If You’ve Fallen Victim To A Bullexo Trading Scam 

If you’ve fallen victim to a Bullexo trading scam, then the first thing to do is contact your bank as soon as you realise. You should also get in touch with us – we’re here to help clients who have lost money through online trades, such as the Bullexo trading platform and have helped clients before who have lost money this way. Get in touch with the team today and arrange a free consultation.

CryptoRom is a malware campaign which combines crypto scams with a method of catfishing. In recent years, CryptoRom scammers have hugely improved their techniques and are now able to leverage new features on mobile devices, partly the reason why they managed to place scam apps onto Apple and Google stores in this instance. 

But, with so many processes in place, how exactly were these crypto scam apps able to find their way onto these highly protected stores? Let’s take a look at the CryptoRom scam and the intricacies of these crypto scam apps. 

What Were The Crypto Scam Apps? 

The CryptoRom scam apps that were able to be placed onto the Google and Apple app stores were called Ace Pro and MBM_BitScan. Although these crypto scam apps are fraudulent, the real question is how they managed to appear on the App stores in the first place, which are usually protected and governed by very strict security protocols. The crypto scam apps are immune to Apple’s Lockdown mode, which was designed to protect users from sophisticated engineering that is typically used in pig butchering scams. 

It is notoriously difficult to get malware past the security review processes used by both Apple and Google, which is why the appearance of these crypto scam apps on the app store is a concern. Now that scammers know it can be done, this brings the potential that other scammers will try to infiltrate the app stores, as has happened in the past.

These crypto scam apps tend to use cryptocurrency as one of the main clauses as, unlike fiat currency, cryptocurrency payments can be irreversible and hard to trace, meaning that in most cases, victims won’t be able to get their money back on their own. This is where our team can help. We use specialist tracing services to identify the final wallet destination of your cryptocurrency and then do the work to recover the lost funds. 

How Did The Crypto Scam Apps Work? 

With the Ace Pro crypto scam app, scammers created and maintained a Facebook account of a woman who was supposedly living in London. The malicious crypto scam app, which was disguised as a QR code scanner, directed users to a remote site when it was originally uploaded to the App Store. Then, both Ace Pro and MBM_BitScan were connected to the same command and control which was designed to deliberately impersonate a legitimate cryptocurrency firm in Japan. 

Victims of both scams were approached through applications, including Facebook and Tinder, and they were then asked to move the conversation over to WhatsApp after initial contact – a common sign of a CryptoRom scam. They were then lured into downloading the crypto scam apps. The highly intricate profiles and backstories the scammers create only add to the legitimacy of the scams, especially when paired with the fact that these crypto scam apps were added to the official app stores. 

What Are Pig Butchering Scams? 

The term pig butchering comes from the strategy scammers use that involves “fattening up” victims before the “slaughter”, or in other words, conning them out of their money. This scam is by no means a new form of scam and is a type of long-term fraud which combines things such as crypto scam apps, investment schemes, romance scams and cryptocurrency fraud into one conglomerate. The name pig butchering scam has been given as scammers will cruelly refer to their victims as pigs, before “butchering” them for their money. 

Pig butchering scams will involve a standard scam approach with an initial text, social media message or forum chats on things such as job boards. Once the scammer has initiated contact, they will begin to slowly build a relationship and, in some cases, may even look to spark a romantic relationship, which is why this type of scam is closely associated with CryptoRom and romance scams. This will usually always be done through text messages or other online messaging forums. 

At some point, the scammer will introduce an investment opportunity and will use a fake crypto platform in order to show some sort of evidence as to their returns. Victims may then “invest” and see false strong returns being generated, however, their money is going to the scammer in reality. When the victim runs out of money to invest or they try and withdraw funds, the scammers will block the victim. This type of scam unfolds over months, with the scammer slowly gaining the trust of the victim and learning how they can exploit vulnerabilities, like those of Ponzi scams. 

Why Is This Scam Different? 

Even though there is little this time that is different from other CryptoRom scams, the biggest difference with this instance is the fact that the apps were able to be wrongly added to the Google Play and Apple App stores. This means that there was a higher chance of more people falling victim to the scam by downloading the crypto scam app, rather than those who were already in contact with the scammers. Apple and Google are strict when it comes to removing and disallowing malicious apps, so it is surprising that in this instance, these two managed to get through. 

In the past, hackers developed ways to get around conventional security testing and it is known that CryptoRom has previously used the actual Apple Developer Program and Enterprise Signatures. Now, these hackers are taking full advantage of two new iOS features. One of these is TestFlight, which is a feature that app developers use in order to distribute beta versions of their apps to testers and it can be easy for app authors to abuse, such as in this instance. 

How To Avoid This Type Of Crypto Scam App

CryptoRom and other pig butchering scams yield high results for scammers in a relatively short space of time, meaning that more and more scammers become incentivised to carry out this type of scam and put more effort into gaining the trust of their victims, in order to receive more in return. What makes this type of scam different from other forms of online and cryptocurrency scams is the lengthy engagement which is involved, from the initial withdrawal to the fake crypto scam apps, and which then makes it hard for the victim to see through the scam. 

People’s trust in apps and software tools has grown substantially over recent years and when apps are able to be sourced from official Apple and Google stores – trustworthy names in the tech and global industry – it adds additional legitimacy, which is what makes the case of these crypto scam apps so potentially damaging. 

Before installing an app onto your device, always check the reviews and read the privacy policy, developer details and information on the company fronting the app. With cryptocurrency, our team can help if you believe you have lost funds to a crypto scam app or another crypto scam. Contact us today to arrange a free consultation. 

Authorised push payment (APP) fraud has become one of the more significant types of fraud and scam in recent years, both in the UK and across the globe. Push payment fraud continues to have a hugely devastating impact on victims and, in the last year alone, losses have totalled almost £500 million. 

In May 2022, Treasury announced that it has the intention to legislate in order to allow PSR to require victim reimbursement for authorised push payment fraud. These new requirements will set a change in the way that push payment fraud reimbursement will work.

With so many people being affected by authorised push payment fraud, our latest blog looks at the changes introduced to the payment requirements and what these changes could mean for victims of authorised push payment fraud. 

What Is Authorised Push Payment Fraud? 

Authorised push payment fraud is when someone is tricked into sending to a scammer who poses as a genuine payee. This type of fraud happens to thousands of businesses and individuals each year and the latest figures have shown that in 2022, £485.2 million was lost to authorised push payment fraud through 207,000 reported cases. 

PSR has said that it expects to see more being done by financial institutions in order to stop authorised push payment fraud from happening and hopes to see better protection for people if they do fall victim to this type of fraud. There are roughly 8 different types of APP scams, with 2 main objectives:

• Malicious Payee, where people are tricked into purchasing goods or services which don’t exist or are never received. 
• Malicious Redirect, which is where fraudsters impersonate bank employees in order to get someone to transfer money from their account to that of the fraudster. 

What Are The New Payment Requirements?

• There will be new rules in Faster Payments, which is where the majority of advanced push payment fraud occurs. 
• All payment firms will be incentivised to take action following reports of authorised push payment fraud. 
• Customers will be more protected using consistent standards, with most victims being reimbursed within 5 working days, as well as having additional protections offered to more vulnerable customers
• The industry will have clearer guidelines in which they are to follow, largely around how to apply a claim excess and the maximum amount of reimbursement. 

These new rules will be imposed on the system which handles Faster Payments, which is where the vast majority of authorised push payment fraud (around 90%) has occurred, with reimbursement requirements coming into effect next year. It has been said that all payment firms will now be incentivised to take action following authorised push payment fraud being reported. 

It’s important to make clear that this only focuses on APP fraud and other payment systems, including cheques, BACS, Mastercard and Visa will not be covered under these new rules and requirements. 

PST is also looking at a wider range of changes which should:

• Lead to the publication of data later in the year which shows how well businesses are protecting their customers. 
• Continue with the widespread rollout of Confirmation of Payee which is the name-checking service that has been designed to help prevent authorised push payment fraud.
• Support and encourage the creation of improved intelligence to help spot fraudulent transactions.

Next Steps

When these changes are implemented, they should give everyone across the payments system the initiative to act when it comes to preventing authorised push payment fraud from occurring in the first place. These changes put the UK right at the forefront of the global fight against authorised push payment fraud. 

In terms of what happens next, there is a timeline of actions planned for the future.

In July, PSR will consult on the draft legal instruments in order to put the reimbursement requirements in place.

In August, PSR will consult on the maximum level of claim excess and reimbursement which can be requested following authorised push payment fraud, as well as further guidance on the customer standard of caution. 

In October, PSR will provide the final legal instructions to Pay.UK and offer further consultation to PSPs. 

By the end of 2023, PSR will publish the claim excess and the maximum amount of reimbursement offered, as well as further guidance on the customer standard of action. 

In 2024, the new reimbursement requirement will come into effect. 

As well as reimbursement, PSR is also set to increase the level of transparency through the publication of data as to how well businesses are protecting customers from fraud. 

How To Get Money Back Lost Through Authorised Push Payment Fraud

There are two different types of fraud – authorised and unauthorised. Under the PSR rules, banks must refund victims of authorised push payment fraud in full, as long as they haven’t been grossly negligent. If your bank refuses a refund, then you can complain to the financial ombudsman. At WRS, we’re happy to offer advice if you have lost money through authorised push payment fraud, or other online scams. Contact our team today! 

There is a lot of misinformation out there about getting your money back after falling victim to online scams, which often leads people to believe either that their money is recoverable, or that there is no hope of getting it back. People believe that if they fall victim to an online scam, then their bank can recover the funds, but this isn’t always the case. Here, we explain how we can help recover your money after being scammed online. 

What To Do First

When you first find that you have fallen victim to an online scam, you will almost immediately wonder how you can get your money back after being scammed online. Then, most victims will go on to make a report at their bank. In almost all cases, the bank will simply provide a complaint reference, and then attempt a chargeback. They may also potentially make contact with the bank to which the money was sent. 

However, most people who fall victim to online scams will find that all of their money is long gone and this is where most struggle to recover it through their bank. It is very hit-and-miss as to whether your bank can recover money lost through online scams. 

Next Steps

If you do try and recover your lost funds through your bank, then there are some things you should be aware of first. If you lost money by sending money to a scammer’s account – known as authorised push payment fraud – then a contingent reimbursement model (CRM) is your best hope of recovery. In May 2019, half of banks in the UK agreed to abide by this new practice which is designed to allow victims who have lost money through online scams a fairer and more consistent remedy to recover their funds and banks can refund those who have followed certain obligations before and during the incident. 

However, not all banks are involved with this scheme and the wording of the scheme’s small print gives the banks that have opted in plenty of reasons not to provide support for victims or attempt to recover their money. If you have lost money through an online scam and have contacted your bank for help without success, then we recommend that you do a subject access request, which then gives you access to everything the bank has on file for you, which can also reveal internal information about your case.

However, at Wealth Recovery Solicitors, we can do this on your behalf if you instruct us to investigate your case. We do all the paperwork, tracing and investigations for you so that you don’t need to worry further. 

How Wealth Recovery Solicitors Is Different 

When you’re wondering how to get money back after being scammed online and you contact your bank, it’s important to know that the bank won’t do a trace to find out who scammed you. We find that, when clients look for how to get their money back after being scammed, they try to hold the bank responsible for keeping them and their money protected, or for identifying the scam. In most cases, the bank will likely have acted correctly and will reject the claim, and this is something that a lot of our clients say has happened. Clients may also have used services like Revolut, which don’t offer the same protections as other banks when it comes to fraud and scams. 

If your case has involved a cryptocurrency scam, then we can follow the trail of the property and get funds back this way. This is something which can be applied worldwide and isn’t restricted by bank governance. 

Unlike other wealth recovery solicitors, who will simply reach out to your bank on your behalf when they know that this is unlikely to result in the recovery of your funds, we will conduct every trace we can to find out where your money has gone. There are many different avenues we can take depending on your individual circumstances and case, whether perhaps cryptocurrency was involved, or if your case is applicable to court, and we will always handle this for you. 

If you would like more information on how to get your money back after being scammed online, or to start your recovery process, contact our UK-based team of lawyers today.

Last year, police swooped in on the iSpoof site, closing it down in one of the biggest fraud stings on record which saw over 100 scammers arrested and facing prosecution for fraud. In the wake of these arrests and the recent conviction of the mastermind behind the criminal subscription website, up to 200,000 Brits may soon be receiving communications from the police informing them that they could have been a victim of a scam conducted using the iSpoof website. Here we take a look at iSpoof, including what it was, what it did, and what to do if you think you may have been a victim of fraud.

What was iSpoof?

iSpoof was created in late 2020 by small time criminal Tejay Fletcher. The site was used by criminals looking to target their victims via phone scams by masquerading as a trusted source – in this case, large and well known banks including HSBC, Santander, Natwest, Nationwide, Lloyds, Halifax and TSB. iSpoof provided it’s users with a subscription based service, essentially allowing them to pay a monthly fee in order to disguise themselves as various services from banks. At iSpoof’s peak, the Metropolitan Police reported that the site had up to 59,000 users subscribed to use the spoofing service, and as many as 20 unsuspecting people per minute were being targeted at the height of its’ usage.

By allowing criminals to portray banks, iSpoof effectively enabled them to contact hundreds of thousands of people and request monetary transfers and/or sensitive financial or account information that granted them access to bank accounts. Victims were targeted in their droves by iSpoof users via phone and also via text message, often having their bank accounts completely emptied once they had provided access information to the scammers. The website is thought to have earned around £3.2million in cryptocurrency, with the iSpoof founder Tejay Fletcher taking a reported £2million of the overall sum.

What is a ‘spoofing’ scam?

‘Spoofing’ is terminology used in cybersecurity and cybercrime and refers to the act of masking the identity of an unknown source, usually as a known and trusted entity, with malicious intent. Usually, the intention behind spoofing is to gain access to sensitive information such as bank accounts and identity information, and/or to request payments and monetary transfers. Spoofing can be carried out in a number of ways, most commonly via phone, text message, email and other messaging services such as WhatsApp.

Who has been scammed by iSpoof?

The victims of Fletcher’s iSpoof are, unfortunately, wide ranging in demographics as the scammers using the website were indiscriminate in their targeting, often calling people en-mass every day until they were successful. We do know, however, that the majority of victims of iSpoof are based in the UK (35% of victims) and the US (40% of victims), as well as a smaller number in Australia and other areas of Europe. Whilst some victims have reported financial losses of up to £3million, the average loss as a result of being targeted by iSpoof is around £10,000.

The site was targeting up to 20 people per minute at the height of its usage, and in the year prior to being taken down in August 2022 it is reported that as many as 10million calls were made using the iSpoof technology, with 350,000 calls lasting more than one minute – an indication that they could have been successful. The 350,000 calls that lasted into a full conversation were made to around 200,000 individuals. To date, there have been around 4,800 cases of fraud enabled by iSpoof reported to Action Fraud – a drop in the ocean compared to the estimated 200,000 minimum victims.

If you received a call from someone purporting to be from your bank between December 2020 and August 2022, and experienced an account breach and financial losses shortly afterwards, then the chances are you may have been a victim of fraud enabled by iSpoof.

Can I get back my money that was lost to iSpoof scams?

Recovering your money from phone scams like iSpoof can be difficult, but is not impossible with the correct processes and/or professional help. Due to the nature of the scams and the obviously fraudulent activity involved, there are often ways to try and recover your lost money. Whilst the methodology for doing so depends largely on the circumstances of your case, a proportion of your lost funds may very well be recoverable so, whilst you may not get all of your money back, you will at least be able to recoup some of your financial losses from the scammers. The best way to get this process started is to take advice from a professional recovery solicitor with experience in dealing with cases involving fraud. If you are looking for assistance, we offer no-obligation, free of charge consultations to run through your individual case, and, having recovered millions for our clients over the last year alone, we are well-positioned to advise you of the best steps to take to recover your funds where it may be possible to do so. Contact us to book an appointment or call us on 02036959239 / 01617684798.

What will happen now with the iSpoof case?

Following the successful police investigation that resulted in the take down of the iSpoof website, police were able to trace Bitcoin records from the site and pinpoint any UK based users who had spent more than £100 on iSpoof during the time it was active. This has led to a large number of arrests with many cases still pending against alleged offenders. As things stand, it appears as though facilitator Tejay Fletcher’s arrest and conviction is just the tip of the iceberg.

Despite having no involvement in the scams, images and reputations of celebrities are being continuously utilised by criminals in an attempt to make victims feel comfortable and at ease, making them more likely to lose money in a celebrity impersonation scam. There are various techniques used by scammers to steal money from victims, ranging from phishing messages to promising investment opportunities, all designed to emulate trust and lose their money.

There are some forms of celebrity impersonation scams that are more frequently used by others, simply because they have the highest success rates in terms of successful scams. Let’s take a look at how you can avoid losing money to celebrity impersonation scams.

Cryptocurrency Giveaways

Even since cryptocurrency became more mainstream, there have been people losing money to fake cryptocurrency scam giveaways. In order to reach as many potential victims as possible, these scammers will carry out celebrity impersonation scams. They often hijack accounts on YouTube that have a high number of followers, or now with the changes in Blue Tick verification on Twitter, can make their accounts seem legitimate. They will then ask people to send digital cash to a Bitcoin address, with the promise of increasing or even doubling their initial investment as the prize of a giveaway. 

In order to make these celebrity impersonation scams seem legitimate, criminals will use people in tech or well-known celebrities in order to build trust. There have been many celebrities impersonated in these scams, including Elon Musk, Jake Paul, Paris Hilton and Jamie Foxx. The scammers will also tend to use pump and dump scam techniques, inflating the cost of the stock and then cashing out before the scam becomes apparent, leaving investors with nothing. 

Fake Emails

Another common celebrity impersonation scam involves financial journalist Martin Lewis. Many people have lost money through celebrity impersonation scams involving Martin Lewis, with scammers using Martin’s images on paid ads across social media platforms, but also notably through fake emails. It is believed that, collectively, people have lost close to £6 million through this specific celebrity impersonation scam. 

Scammers used fake emails claiming to be from Martin Lewis’ site MoneySavingExpert.com using “mseoptions.com” as one of the emails used to encourage recipients to part with their money. This celebrity impersonation scam has been around for years and, despite best efforts from the Money Saving Expert team, they still continue. Martin Lewis and the website team have said that they never advertise or endorse their site online, so if you do spot them, avoid them. 

How To Spot A Celebrity Impersonation Scam

There are some telltale signs when it comes to spotting a celebrity impersonation scam. Some are similar to other scam methods, but there are some differences in the way that these scammers operate. 

The Account Looks Unusual 

On Twitter, there will be very obvious signs that the account is involved with a celebrity impersonation scam. If the bio seems unusually written for the celebrity or uses a lot of emojis, then this could be a spam account. If they mention cryptocurrency trading or money in any way, then this is also something to be wary of. 

Check the username for the account – this is also recommended for email celebrity impersonation scams – as celebrity accounts don’t tend to use numbers or special characters. When scammers copy celebrity accounts, the only thing they can’t copy is the account name.

Another thing to check is the posts on the account. If they’ve all been posted in quick succession of one another, then this is a technique that scammers will use for celebrity impersonation scams in an attempt to look like a legitimate celebrity. 

Pushes For Donations To Charitable Causes

Another way you can spot a celebrity impersonation scam is if the account is pushing for donations to be made to a charitable cause. This can occur on any platform and via email, however, the tactic isn’t very sophisticated, as the scammers will typically reach out directly to other users and act as the celebrity, asking them to donate to a charity they are supposedly supporting. As is the case with celebrity impersonation scams, if users donate, then the charitable cause they have donated to will never receive the funds. 

How To Stay Safe From Celebrity Impersonation Scams

It’s easy to spot signs of some scams and although there are some obvious signs of celebrity impersonation scams, hundreds of people still fall victim to them each year, losing thousands of pounds. 

Thankfully, social media platforms have begun taking more steps to protect users from celebrity impersonation scams and make it easier to distinguish between real celebrities and fake imposters. It is more difficult to impose restrictions on celebrity impersonation scams via email, so the best way to stay safe is to remain vigilant and always do some research if you are contacted via email. 

If you have lost money through a celebrity impersonation scam, then our team may be able to help you recover the lost funds. Get in touch with us today and we can see how we could help! 

FTX, which was once valued at $32 billion, filed for bankruptcy on the 11th of November 2022, with the collapse branded a failure of corporate control. It is believed that the FTX collapse was a case of embezzlement and this left investors and creditors unlikely to get their money back as a result. In our latest blog, we take a closer look at the collapse of FTX and what this means for traders now, a few months on from the fallout. 

The Collapse of FTX

FTX was founded by MIT graduate and former trader Sam Bankman-Fried, with FTX offering a range of trading products. The collapse of FTX shook the cryptocurrency market, causing it to lose billions of dollars in value, dropping below $1 trillion. The collapse of FTX took place over a 10-day period and is considered one of the most spectacular situations to happen within the crypto industry thus far. 

A Timeline Of The Collapse of FTX

• On November 6th, the rival exchange Binance sells their FTT tokens.
• On November 7th, FTX announces liquidity and seeks a bailout from venture capitalists, then Binance.
• On November 8th, Binance announces that it will buy FTX’s non-U.S. business. 
• On November 9th, Binance walks away from the FTX acquisition after doing their due diligence. 
• On November 10th, the Bahamas freezes assets of FTX’s subsidiary business there, and Bankman-Fried admits a non-U.S. businesses’ liquidity crisis. 
• On November 11th, Bankman-Fried steps down as CEO of FTX and is replaced by court-appointed CEO that has restructuring experience. On this day, FTX files for Chapter 11 bankruptcy protection. 
• On November 12th, FTX reports the possibility of a hack, with a suspected $477 million involved, and they then decide to move their digital assets into cold storage for security. 
• On November 18th, the Bahamas takes control of FTX assets held in the country.

Consequences Of The Collapse of FTX

The collapse of FTX left the future of the exchange in serious jeopardy. Following the collapse, in mid-November all withdrawals from the platform were disabled and, on the company website, there was a notice advising against depositing any further funds. As the largest collapse of an exchange or currency in the short history of cryptocurrency, this could have an impact on the way in which investors, who may already be cautious or wary about the stability and security of the market, make future investments and trades. Traders who traded on the FTX platform may not recover their lost assets which again could make traders more cautious with their investments. 

In the days following the collapse of FTX, many other platforms saw an increase in the number of withdrawals, whilst some lenders, such as BlockFi and Genesis paused withdrawals completely whilst the effects calmed down. 

What Now For FTX?

At the beginning of April 2023, it was reported that the exchange might soon be restarted as, following the collapse of FTX in the previous November, it has since recovered $7.3 billion of customer funds. The situation has reportedly stabilised and with this announcement, FTX’s native token apparently soared over the following days. It could be that in the second quarter of 2024, the exchange has raised enough to pay back traders and have enough to be able to start up again. When the collapse of FTX occurred, the company had recovered just $3.3 billion, so it shows that recovery efforts to settle the amount lost are well underway. 

With Cryptocurrency on the increase again, this is largely believed to be one of the reasons why the token started performing well again following the collapse of FTX. It is believed that FTX will set out its plan for the future by July, but details are still to be worked out as many creditors fight for their share of the company’s assets.

What Does The Collapse Of FTX Show? 

The collapse of FTX showed that, although funds can be lost when trading as a result of exchanges or tokens collapsing, they can be recovered. Exchanges are now a lot more compliant and there is more in the way of trader protection. Here at Wealth Recovery, we’ve found that with these new compliances, this now means that for traders where money has been lost through trading, often the need for court orders isn’t required, not only saving time, but additional cost too. If you have lost money, get in touch with our team of wealth recovery solicitors to start the recovery process. 

Many crypto experts are anticipating that this increase is expected to continue in future months and this is largely down to the fact that macroeconomic conditions and easing across the globe, particularly in the U.S. and UK markets. Let’s take a look at some of the latest updates in answer to the question on everyone’s lips at the minute: is cryptocurrency going up again?

The Road To Recovery: Is Cryptocurrency Going Up Again? 

Overall, it appears that the crypto trading market has shifted towards being positive instead of neutral. This year already, Bitcoin – the world’s largest cryptocurrency – has risen almost 70% and Ethereum has reached its highest peak since August 2022 – seeing an increase of 50% this year. Many industry insiders are already predicting that Bitcoin will hit an all time high this year. 

Why Is Bitcoin Rising So Much?

This week, there has been a sharp rise in Bitcoin prices (almost 9%), which has then pushed it above $30,000 (£24,118) for the first time since June last year. The recent increase in Bitcoin prices and value has sparked many discussions within the industry about a new market boom, but why exactly is this cryptocurrency going up again? 

It’s believed that the movement in Bitcoin began when the news of the fallout of the tech-focused Silicon Valley Bank broke, followed by its collapse. Since then, Bitcoin has steadily increased and has climbed almost 80% this year alone. Overall, the global crypto market is now trading at a higher level, plus, as well as this, experts predict that this recent surge in Bitcoin is also linked to the fact that more traders are showing confidence in the Federal Reserve (Fed), which is believed to announce a pause on increasing interest rates again due to fears of recession across global markets. 

In a domino effect, these fears of recession across global markets have exposed risks and weaknesses within banking systems all over the world and traders have felt an increased appetite for decentralised currency, such as Bitcoin and other cryptocurrencies, which are seen as safer alternatives to conventional banking systems. 

What Determines The Price Of Bitcoin? 

Unlike traditional currencies (also known as fiat currencies), such as the GBP or US-Dollar, Bitcoin isn’t defined by a single entity as it would be within a central bank. Instead, it is defined by supply and demand, or the price which traders are willing to pay. When there is more demand for Bitcoin, similar to when other cryptocurrencies are going up again, the price increases and when this demand reduces, so too does the price. 

The demand for Bitcoin is dependent on a number of factors, such as global events (including advances in stocks and price declines) and other economic factors, such as trade deals and conflicts. Unlike fiat currencies, which are subject to change in line with political and economical influences, Bitcoin is a fully decentralised system. There is no one regulatory authority which looks after the monetary base. Bitcoin also has the highest trading volume when it comes to cryptocurrencies, but compared to other global markets, it is relatively small market-wise. 

Have Crypto Markets Turned Bullish?

A bull market occurs when commodities and securities are on the rise, such as now when cryptocurrency is going up again. Typically, this term is used to refer to the stock market, but it is applied to anything which is traded, such as cryptocurrencies, so yes the cryptocurrency markets have turned bullish. In recent times, the cryptocurrency market has seen positive signs following an ease in macroeconomic activities, which has then caused the price of cryptocurrency to increase. The current trading value of the cryptocurrency market has recovered to levels not seen since June 2021.

With the markets turning into bull markets, there is also the possibility that a rally occurs. A rally is a period of sustained increases in the prices of cryptocurrencies, stocks or bonds and it usually involves rapid and substantial increases over a short period of time. Rally, as a term, is used loosely when referring to upward swings in markets and is caused by significant increases in demand which is the result of a large influx of investment capital in the market. This then leads to the bidding up of prices. 

What To Do In The Event Of A Crypto Rally

• Diversify your trading portfolio
• Spread your risk in order to lessen the impact of a downturn in a specific crypto 
• Keep up to date with industry developments
• Don’t make impulsive decisions 
• Follow a strategic investment pattern
• Store your cryptocurrencies in a secure wallet 

Things Traders Should Be Aware Of With The Market Increase

With cryptocurrency going up again, there are some things which traders need to be aware of, or areas where they should show extra caution. There has always been the risk of market manipulation, but this risk increases when the market does. Market manipulation is where there are attempts to artificially inflate or influence the price of an asset, or overall market behaviour. This can involve a single individual, or group of individuals, looking to create an overriding illusion within the trading market. 

Pump and dump schemes are the most prevalent offender when it comes to market manipulation, which is where a group of people work together to artificially inflate the value of a coin. This scheme is usually targeted toward low market coins which are available on limited exchanges, with the inside group buying the coins, then dumping them once there are enough traders and investors also buying the coin. This causes the group to gain a profit, whilst most other participants take a loss. Before trading, always do your research and due diligence before parting with any money. 

Another thing to be aware of with cryptocurrency going up again is the likely increase in trading scams. Criminals will be aware that people will want to spend more investing in crypto, knowing that there is the possibility of getting higher returns, so will likely target new or inexperienced traders. If you believe, at any point, you have been the victim of a trading scam, then please get in touch with our team of recovery solicitors to start your journey. 

Who Are BDSwiss?

BDSwiss has been established since 2021 and has provided CFD and forex services to more than 1 million investors. The firm has experienced dramatic growth trajectories as well as won multiple awards for its services and products. 

Throughout the years, BDSwiss have had a range of partnerships with brands and sports teams. Since 2021, they have been sponsors of the DP World Tour Championship, AVIV Dubai Championship and the MercedesCup ATP 250. 

They also sponsor local football teams and even some cycling teams. This all encourages investors into thinking they are legitimate investors but are they? Is this just a smokescreen for what is happening behind closed doors? 

Is BDSwisss Legitimate?

Scammers use a range of different methods to part you with your money, but online trading platforms are one of the most lucrative and recurrent methods that scammers will use. It’s pretty easy for a brokerage firm to tick all the required boxes, but if you know what to look out for, there are some red flags that they hide from investors. To evaluate whether BDSwiss is legitimate, it’s important to get an overview of the services and products they provide, its regulatory status and how they use its data. 

BDSwiss Background

The company claim to specialise in multiple formats including shares, forex pairs, metals, energy, ETFs and indices. Since June 2020, the company has had over 1.5 million registered investors with a trading volume of $84 billion. BDSwiss had its first office in Berlin in 2012, but now it also has offices in Seychelles and Mauritius which are listed as its current address. It is now present in over 10 countries and draws clients from over 186 different countries.  

Who Regulates BDSwiss?

BDSwiss operates under BDSwiss Group which has licenses from various regions including:

• BDSwiss Holdings Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission under CySEC license number 199/13.
• BDS Markets is regulated as an investment Dealer by the Mauritius Financial Services Authority (FSC).
• BDSwiss GmbH is registered by BaFIN in Germany.
• BDS Ltd is regulated and authorized by the Financial Services Authority (FSA) in Seychelles, license number SD047.

As you can already see, BDSwiss is not regulated by any reputable regulatory body like the FCA. This raises many questions and red flags as many of the regulatory bodies they are registered with have very loose rules which are extremely risky for their customers. 

BDSwiss Red Flags

Although BDSwiss is regulated by some bodies such as CySEC, the firm has been in trouble in the past which, of course, sends red flags to people like us. We investigated and it seems that in 2017, CySEC fined BDSwiss for €150,000 for violating market laws. CySEC also gave them an administrative fine of €5,000 for not complying with the laws in 2016. 

Let us ask you this, would you be comfortable investing your money with a company that has been fined twice for not abiding by the law? For a company to have been fined twice by regulatory bodies shows they are not operating in a legit manner and are not following the rules and regulations in place.

Negative Customer Reviews

There have been many reviews from previous customers of BDSwiss, but overall the reviews outline two main areas that stick out a lot. These are:

• Customers make withdrawals but don’t receive their funds.
• High spreads and manipulation of the price – make it hard to profit from trades.

With these two elements being the main focus on bad reviews, it’s easy to say that you should stay clear of this company at all costs.

Multiple Addresses 

BDSwiss has multiple entities that operate in many regions. Due to them having this, they claim to be regulated by multiple bodies in Seychelles, Mauritius, Germany and Cyprus. According to the CySEC website, the address is for Limassol in Cyprus, but the BDSwiss website has a Mauritius address. Multiple addresses are very confusing.

The worst part of this is none of the regulatory bodies is strict as well as their offices are in offshore zones which makes it much easier to find loopholes to scam investors. A legitimate company will have one traceable address. 

Final Verdict

If you are new to investing forex or any other form of investing, it is best to stay away from BDSwiss. With customer reviews outlining that they don’t receive the funds when withdrawing, as well as making it extremely hard to profit from your trades, it is easy to see that there are some illegitimate processes in play. Combined with the fact that they are not registered with the FCA, it would be much safer to go with a broker that is.

If you have lost your funds from a forex scam or other from an irregulated broker, then speak to us as we will be able to help recover your losses. BDSwiss is one of, if not the most, common brokers that we deal with and we settle many cases against them, without any court intervention. We also offer a no win, no fee process. Contact us today and we can discuss your recovery process. 

NAGA Global Review

NAGA was established in 2015, the company had a mission to provide user-friendly and efficient trading options for beginners as well as professionals. NAGA is an official trademark of a German-based Fintech company called The NAGA Group AG, which has been listed on the Frankfurt Stock Exchange since 2017. In August 2021, NAGA had a global partnership with the Spanish football team Sevilla FC. This was then unveiled as the new shirt. 

Is NAGA Genuine?

To answer this, we will be looking into the company’s products and its operations. We will also look at whether it is regulated and who by.  

NAGA Company Profile

NAGA trades with stock CFDs, forex, indices, futures, commodities and ETFs. The website says that they have over 1 million traders, but it is unclear as to how many of these are happy customers. NAGA also created NAGA Pay, which is a mobile banking and investing app which allows users to trade, save and spend all in one place. 

What some people don’t know is that NAGA is under a parent company backed by Fosun Fintech which is also the majority shareholder. NAGA is based in Germany and appears to be regulated in a range of jurisdictions across the world. 

Who regulates NAGA

NAGA has a range of licences throughout the world. It has a license as NAGA Markets Europe Ltd and is regulated and authorised by the Cypriate Securities and Exchange Commission (CySEC) under licence number 204/13. NAGA also have other subsidiaries including:

• NAGA Global (SV) LLC, registered in James Street, Kingstown, VC0100, Saint Vincent & the Grenadines.
• NAGA Technology GmbH, registered in Hamburg, Germany.
• NAGA Global (CY) Ltd, is now registered in Cyprus.

CySec covers EU clients, but the affiliate company is registered in Saint Vincent & Grenadines as they don’t have strict regulations. 

Offshore regions like these attract a lot of scam brokers as the licencing is nowhere near as strict. Brokers find it much easier to obtain a license easily. Regulations are minimal and the requirements are less to set up. As a trader, you are at a much higher risk of losing your funds when a company has this type of offshore account. 

Red Flags That NAGA Is Not The Company They Claim To Be

The website is very good at looking legitimate, as it offers the following:

• Customers can deposit funds with a range of payment methods. 
• Well-known trading platforms including.
• Free education tools and an economic calendar.

There are many red flags that should be considered:

Customer Reviews

Even if a website looks amazing, this doesn’t mean that they are legitimate. It pays to look at customer reviews in great detail when you are looking at investing money. Although NAGA portrays itself to be a legit broker, reviews from customers show that the firm could be scamming people. 

Trustpilot has a high review rating of 4.5/5, but many of the 5-star reviews appear to be fake. 

Many of the past reviews label the firm as a fraudster which results in a loss of large budgets. 

Offshore Regulations

Whilst CySEC authorises NAGA, the company affiliates are not covered by the regulations and laws. Due to the registrations in offshore locations, it presents a high opportunity for a financial loophole to make it all too easy to lose customer funds. CySEC laws do not cover investors outside the EU and from many of the reviews, it shows that NAGA do not operate like a regulated company. 

Restrictions

When looking into the company in more detail and visiting the Financial Conduct Authority, NAGA only has a temporary operating license. NAGA indicates that it does not cover the UK, USA, Canada, Vietnam and Isreal. The reason for this is that these countries have strict regulations which show the company is not allowed to operate in these countries due to it being a scam. 

Conclusion

Following this review, it shows that NAGA is operating in a way where the money lost through trading can be recovered. With the numerous negative reviews offshore regulations and restrictions show that the firm is untrustworthy. If you have been a victim to a broker scam or other form of scam from this company, we can help you to recover those losses. Losing your hard earned money can feel sickening and we want our clients to feel like they have someone on their side. Contact us today and we can discuss the process to get this journey started.