10.03.2017 Crypttrade Capital (Not Paying)

10.03.2017 Crypttrade Capital (Not Paying)

Yesterday we talked about the Biznet scam. Biznet told a stupid story that they had to stop payouts because of problems with the Russian government. This is a well known standard excuse when a big HYIP gets liquidity problems.  The simple truth is, that this was a ponzi scheme that ran out of money.

Of course, the death of Biznet has an impact on the whole market. Yesterday, we asked if Resonance Capital or Cryp Trade Capital will follow next.

It looks like we have a winner. Cryp Trade Capital closed the office in Alicante in Spain. A lot of users were claiming withdrawal problems during the last weeks. Now Cryp Trade released the following statement:

  • About a month ago, Cryp Trade Capital announced that due to Bafin (German regulatory) which is the same as the SEC here in the U.S. called for all records of investors who live in there jurisdiction.
    Because Cryp Trade Capital was paying investors through an exchange called AdvCash, it was paying in a regulated currency that gave Bafin authority to request records.
    Cryp Trade Capital since announced to cease the use of advcash and called for all investors to switch to crypto currency wallets for payments. Because crypto currency is un-regulated.
    Unfortunately this caused more confusion, because some investors never funded their CTC account in bitcoin, then attempted to make withdraws in bitcoin and this was not allowed. As a result, a major communication breakdown caused more delays in payments.
    About three weeks ago the Italian CONSOB joined Germany to obtain records on the investors and demanded Crypt Trade Capital to suspend all services until they complied.
    Furthermore, Cryp Trade Capital vacated their headquarters in Alicante, Spain and announced they are moving to the Asian markets. The new headquarters office location has not been officially announced yet, but we do have information that other investors have opened offices in Ukraine and Turkey.
    In conclusion, Cryp Trade Capital is going to pay the investors who are affected by the European ban, but to be compliant with the Bafin and CONSOB, they must first obtain taxpayer identification for each individual prior to sending payment.
    I hope this clears up any confusion.

Sounds familiar to Questra, Biznet and and and….The same stupid story, regulators are causing problems, therefore they have to shut down. Of course,   because Cryp Trade Capital was illegal and traded without Bafin permission. But why should you care about the Bafin and a trading license now? Why shut down now and not 6 months earlier? Because the European market was saturated and cash flow got stuck.  And as HYIPs  always do,  Cryp Trade promises to refund the investors too. Forget your money. Chances are very low that you will see it again. We monitored more than 100 programs during this year and there was only one program refunding. It was ETH-Trade and this was probably the only real trading company.

I can imagine that Cryp Trade Capital will try to continue on the Asian market, because there is a very big demand for the program. But in Europa, it’s 100% over.

There is one lession to learn: In this biz do not trust anybody.

Comments are closed.