Broker Fee? Exchange Commission? Nothing but Pretexts of MyCryptoTrade for Scamming

Cryptocurrency has been a favored trading product for many investors in recent years. Unlike forex, cryptocurrency is not really a currency. As a speculative product, it is not suitable for all investors. Many people have only occasionally heard of cryptocurrencies such as Bitcoin and know that it has brought a lot of fortune to some people but did not thoroughly understand cryptocurrencies. So scammers target this gray area, taking advantage of cryptocurrencies to deceive investors, and MyCryptoTrade is one of them.

A victim told us the whole process of being duped by MyCryptoTrade. In July this year, he was invited into a telegram group by whoever he didn't know. And he didn't know anyone in the group but saw that they kept discussing how much money they made through Bitcoin. Seeing others making money made the victim tickled his fancy.

A group administrator with the user name Cikgu Hizairi introduced him to MyCryptoTrade, a self-proclaimed bitcoin finance company that claims to have professional traders who participate in the financial markets and bitcoin exchanges on behalf of their clients, making money quickly and safely in only three hours. The company also promised that in case of failure and loss, the client would not be liable for any losses and would receive a full refund. 

After listening to the admin, the victim decided to join the investment. After the investor deposited RM1,000, the administrator gave the investor a "heads up," saying 20% of the profit would be paid to the trader as remuneration if the trades profited. Investor also need to pay 20% of the foreign exchange commission when the withdrawal of funds. At this time, the victim did not feel the fees required to have any problems, so he agreed.

After some time, the investor was pleasantly surprised to find that the account balance exceeded RM30,000 and paid RM6,000 to the trader as previously agreed. However, the company immediately urged him to pay the "foreign exchange fee," which made him feel that something was wrong - why has he already transferred so much money to the company when the profit has not been in hand yet?

Eventually, the victim realizes that he has fallen prey to the scammer.

BrokersView reminds you

As previously stated, as speculative products, cryptocurrencies are not suitable for all investors. Compared to forex, the regulation of cryptocurrencies is not yet complete or clear. Even investment activities on cryptocurrency exchanges registered with financial institutions are very risky, and in the case of illegal financial companies like MyCryptoTrade, it is even more impossible to make money.

It is worth mentioning that MyCryptoTrade's user account page is poorly done, and even the bitcoin price data they provide is very different from reality. From the screenshots provided by the victim, the company claimed that the price of Bitcoin floated around $16,800, but in reality, the price was around $40,000 in late July this year.

Even if the scammers send a fee charge notice ahead, it doesn't mean their behavior in charging the fees is reasonable and legal.

Bitcoin trading is so risky that even the biggest exchange in the world can't promise profit in three hours, while MyCryptoTrade describes the investment program it offers as a charity event that not only makes money for people but also offers to cover all of its clients' losses. If MyCryptoTrade could really make so much profit, then why don't the operators trade with their own money? Why would they choose 20% remuneration instead of 100% profit? The only answer is that it's lying - there's no way the company can make that much money for its clients.