Crypto Phoenix Review- Scam Broker Complaint
Crypto Phoenix Review – An Introduction
Crypto Phoenix is another new platform that has come up in the recent past. The company advertises itself as an investment company. It seems to be in the domain of cryptocurrency mining and trading. The company seems to be based out of the UK. It was founded in 2019. It is relatively new but has had its fair share of bad reviews and complaints on the internet. The company suggests it is licensed to offer services in the UK. Apart from cryptocurrency the company claims to also trade in commodities & stocks in the conventional market. Crypto Phoenix also suggests that it shares a percentage of its profit with charities. The company seems to offer three different types of investment plans with daily returns that start from 4% and go as high as 9%.
While looking at any broker or Crypto trader, we do look at the owners and the origin of the company. In the case of Crypto Phoenix there is not a lot of information about the owner and leadership. What we do know is that the company was registered in October 2019, though we cannot figure out who is the owner of the domain. That information has been purposely kept hidden. It is always shady when a broker is withholding information. Information that is vital for its credibility and legitimacy.
The next thing we look at when we analyze a broker, are the licences it has acquired to offer services in a certain country or around the globe. Now Crypto Phoenix suggests that it is registered in the UK. And it has an address and phone number to prove that. However there are a dime a dozen dummy companies that have offices registered on paper in the UK and have VoIP phone numbers that they use to appear to be calling from anywhere from around the globe. Assuming that the company is really operating out of the UK it should be licenced by the FCA. The FCA is the government regulator that overlooks trading in the UK and it hasn’t awarded any licence to Crypto Phoenix. We decided to dig deeper and find out how Crypto Phoenix can operate without having a licence. In the rules and regulations of Crypto Phoenix it explains that every transaction on its platform is a private transaction. And assuming that it is a private transaction its program is exempt from the US Securities Act and the US Investment Company Act of 1940 and any and all other regulations and rules and amendments there of. Also it is not an FDIC insured company.
Another shocking red flag you would come across with Crypto Phoenix is the outrageous claims it makes. The company suggests profits of 4% to 9% daily, which is about 120% to 270% of profit monthly. One doesn’t need to be a certified economist to figure out that such claims are almost always bogus.
Given that the company is reluctant to share verifiable information about itself, and misleads people about it being regulated, we believe Crypto Phoenix could be running a scam. The fact that it’s claims are so wild, doesn’t help their case, given that it barely has anything to back it up. Also the wide range of complaints against them online, do not help their case.