Bitcoin Forex Scam
“Bitcoin” and “Forex” are words anyone who has spent some time on the internet is aware of. Most people have seen advertisements promising that they can make a fortune trading bitcoin or forex. Millions of dollars are lost on bitcoin forex scams every year. There is a lot of confusion about bitcoin, forex, and their role in recent scams, and it is important to research before signing up with a bitcoin forex broker.
Bitcoin and forex can be legitimate, but they are volatile and should be approached with care. When consumers see an ad for bitcoin forex brokers, it is important to do extensive research first before signing up. In addition, those who have lost money in a bitcoin forex scam should seek the aid of a fund recovery agency.
Chargebax has the expertise and the right strategies to deal with forex trading scams. We consult with clients, gather information, and can track down forex trading scams as well as crypto and CFD fraud. Our working relationships with banks, government agencies, and law enforcement can help your claim achieve results.
What is Bitcoin?
Bitcoin was the first cryptocurrency and was introduced in 2008. Since then, bitcoin has had its ups and downs, but with the increase in the number of additional digital currencies, it appears to be here to stay.
Bitcoin is a high-risk asset and fluctuates widely in value. In addition, it is risky because it is not subject to government regulation. This virtual currency is tracked by blockchain technology, which is a ledger system that records all transactions. However, the transactions are anonymous and that is one reason it tends to attract fraudulent deals. Many bitcoin trading frauds attempt to disappear on the blockchain and launder their funds there.
What Is Forex?
Forex is an abbreviation for foreign exchange. The principle behind forex seems to be simple–it deals with currency pairs and the differences between them. However, forex trading can be quite complex and is a highly volatile market.
The forex market is the largest, with $3 trillion traded each day, and because of its size, it can shift quickly. If a government or an institutional investor wants to sell a large position in a specific currency, smaller forex investors can see their holdings rise or fall dramatically.
What Is Bitcoin Forex Trading Fraud?
What Is Bitcoin Forex Trading Fraud?
A bitcoin forex trading fraud can refer to several scenarios:
- A scam broker that offers both bitcoin and forex
- A fraudulent forex broker that will accept only bitcoin or cryptocurrencies as a payment method
Many bitcoin forex trading scams fit both categories. In the first scenario, the broker may claim to offer bitcoin and forex trading. They encourage clients to trade either one or both. These fake brokers may concentrate on highly risky trading products like bitcoin or forex as a way of explaining away losses.
Also, if the clients realize there is a risk of losing money anyway, it may follow logically that they may be less likely to complain if they feel they were scammed out of their money than a more conservative investor.
The fact is, in many cases, no actual trading happens. Many of these bitcoin forex trading frauds are Ponzi schemes in which money comes in and those few people who are allowed to withdraw funds, usually with huge fees, are paid not by returns on trades but through the money the broker gets from new clients.
When many people try to withdraw money at once and the fake broker can no longer justify payment delays, they will usually disappear without a trace and with clients’ money.
Regarding the second category, many forex trading scams will accept bitcoin and cryptocurrencies as the only means of funding an account. They do this to avoid credit card chargebacks, wire recalls and other methods customers have of reversing charges and getting their money back. Since no transactions on the blockchains are refunded and since they are anonymous, it can be easier to get away with their fraud.
Signs of Bitcoin Forex Trading Scams
The following are warning signs of bitcoin forex trading scams:
- Unlicensed brokers
- Guaranteed returns
- Aggressive tactics
- Do not accept credit cards as a payment method
- Extremely high fees
- Denies requests to withdraw money
- Does not communicate regularly
The first thing to look for in a broker is a reliable and current license. Most bitcoin forex trading scams are not licensed or have a third-rate license. Licensing is important because regulators provide oversight, take disciplinary measures against certain brokers, and act upon customer complaints. Watch out for fake licenses and confirm licensing by looking up the broker on the regulator’s website.
No broker can guarantee returns on trades, especially with risky trading vehicles, such as bitcoin and cryptocurrencies. Any broker that claims to guarantee returns is not trustworthy. Brokers that accept only cryptocurrencies as payment and do not take credit cards are doing this because they want to avoid credit card chargebacks and having money to clients automatically refunded.
Although most brokers have fees, requiring high fees for withdrawing money or being reluctant to release funds is a sign of a bitcoin forex scam. Look carefully at the terms and conditions before signing up with a broker and read reviews online. Although not all reviews are authentic, taking time and doing research should provide a fuller picture of a broker and help you avoid bitcoin forex scams.
If your broker is not communicating with you and will not allow you to withdraw money without an exorbitant fee, it is essential to contact a fund recovery agency right away. There is little chance for an individual client to get money back from a fraudulent broker without advocacy from a fund recovery service.
How to Recover Funds from a Bitcoin Forex Trading Scam
ChargeBax has extensive experience dealing with victims of bitcoin forex trading scams and other types of fraud. Chargebax experts have dealt with numerous fund recovery cases and have helped our clients retrieve funds from crypto scams, forex scams, and merchant frauds. We have a strong working relationship with banks, government agencies, and banks and will help you pursue your claims and achieve fund recovery success.