CotextMarkets - FCA warns traders against cloning
The apparent online broker CotextMarkets sells itself as a serious platform for online trading in CFDs, Forex and other asset classes. However, there is growing evidence that there are strikingly many inconsistencies at CotextMarkets. More and more investors are reporting telephone terror, rip-offs and investment fraud in connection with CotextMarkets. All of them have lost the money they invested with CotextMarkets. Doubts are spreading. Meanwhile, many CotextMarkets investors are worried that it is an investment scam. All CotextMarkets investors are wondering if they have become victims of investment fraudsters? And what can CotextMarkets investors do if the suspicion of investment fraud is substantiated? How can CotextMarkets investors get their money back? Does it make sense to file a criminal complaint against CotextMarkets with the police? Where can I get help in case of investment fraud?
CotextMarkets: Shady promises on the website
What must the perplexed prospective customers receive on www.cotextmarkets.com? "We are dedicated to being a reliable and trustworthy broker for every trading interaction, with friendly and knowledgeable support staff available for all your needs. Join us today and begin your trading journey. We provide the educational resources you need to make the transition from traditional investments to derivatives trading as seamless as possible. With our standard and premium accounts, cotextmarkets.com offers those looking to dive into the global markets the flexibility to manage their trading as they see fit." This is just a small sample of the implausible assurances that the curious can find on the CotextMarkets website. Not one of these given assurances by CotextMarkets has been kept. Unhappily, the disturbing business practices rather make for disappointed investors and miserable experiences!
CotextMarkets: Hide-and-seek game with domain entry!
Remarkable for the business practices of the CotextMarkets makers is that the website does not contain an imprint. Thus, the complete information about the legally responsible operators of the website is missing. If one takes a look at the domain data of the CotextMarkets website, there are no references to the operators. However, one learns that the domain was only registered with NameCheap, Inc. on 23.05.2020. The real domain owners are hiding behind the Icelandic anonymisation service Withheld for Privacy ehf.
CotextMarkets: Who is behind it?
Answering this question will be rather difficult for many investors, as the CotextMarkets makers do everything they can to conceal the true circumstances. However, this is nothing unusual. The perpetrators usually operate several of these websites with the same fraudulent business model. These are created in advance, quickly put on the net and just as quickly shut down. The top-level domain is often changed to deceive the financial supervisory and law enforcement authorities. But who is the operator? On the CotextMarkets website there is only scanty information about this. The two companies Cotextmarkets Ltd. and Cotextmarkets (Europe) Ltd. with the business address 3rd Floor, 28 Throgmorton NY, New York USA are listed, but the makers of CotextMarkets cannot be found under this address. In addition, there is the obligatory support e-mail address and the US telephone number +15187492436.
CotextMarkets: Shameless cloning
On their website, the makers claim to be regulated by CySec, among others. However, on closer inspection, it turns out that the CySEC licence number belongs to another company, namely HYCM (Europe) Ltd. Likewise, CotextMarkets abuses their FCA licence, which has since led to an FCA warning.
CotextMarkets: The customer acquisition of the investment fraudsters
The same approach can be found here again and again: In order to acquire new customers, the offers of CotextMarkets are propagated in all possible media and channels. Often enough, these are false promises. To reinforce the deception, they upload videos on Youtube or Vimeo in which interested investors are convinced with fictitious references. Here, supposed celebrities report on their experiences with online trading and cryptocurrencies, often with a misleading reference to the TV show "Die Höhle der Löwen". With the same intention, an affiliate programme is often started to give others incentive to beat the advertising drum for CotextMarkets.
CotextMarkets: Criminal business practices
As soon as the customer has registered on the trading platform, he receives calls from alleged financial brokers who like to refer to their years of experience and their satisfied customer base. In many cases, however, the makers of this business model are fraudsters, against whom the Federal Criminal Police Office and the Federal Financial Supervisory Authority (BaFin) also warn. Investors usually start with a small amount of money. Beforehand, investors are often motivated to install remote maintenance software, such as AnyDesk or TeamViewer, on their computers so that they can supposedly receive help with the first steps. In many cases, the computer is manipulated afterwards and unwanted transactions are carried out. In the process, the investment fraudsters often also gain access to their victims' online banking. What is particularly criminal, however, is when supposed profits are displayed on the trading platform in order to entice the customer to place further high stakes. Sometimes even small sums are paid back to lull investors into a sense of security. Who then does not want to increase the stakes further? But what happens next?
CotextMarkets: repayment of money is subject to conditions
Once in, it is usually impossible to get out. Instead, the administrators of the investment scams tie the repayment of the money to further deposits. This is where employees come in, claiming alleged tax debts and commission payments. If these are settled, the alleged profits are paid out. The perpetrators send investors self-made tax and commission statements, often decorated with fake coats of arms. These would have to be paid urgently. It is never possible to offset them against the alleged profits. If an investor refuses to make further deposits, supposed profits are turned into losses through senseless transactions and the client is damaged to the maximum. The horror does not end there, but investors are permanently confronted with calls from other dubious providers. This indicates that the investors' contact details are traded on among the investment fraudsters. In the end, a "saviour" regularly calls claiming to have uncovered the whole scam. He impresses with his insider knowledge. No wonder, since he is part of the fraud gang. The next rip-off department! And of course the "saviour" also wants a small fee - up front!
CotextMarkets: Scheme of investment fraud?
There is no authorisation of the online broker CotextMarkets. CotextMarkets lacks authorisation by a recognised European financial regulator, such as the English Financial Conduct Authority (FCA) or the Cyprus Securities and Exchange Commission (CySec), which is often used by brokers. Likewise, there is no authorisation from the Swiss Financial Market Supervisory Authority (finma) or the Financial Market Authority (FMA) of Austria, which is responsible for Switzerland. For this, there is a warning from the FCA dated 09.09.2021. It is also obvious that CotextMarkets is a scheme of capital investment fraud. All victims of CotextMarkets are advised to consult an investment fraud lawyer immediately.
CotextMarkets: Where do the fraudsters operate?
Unfortunately, the illegal activities of CotextMarkets were not limited to the English-speaking world. Because CotextMarkets also addresses German-speaking investors, it is only a matter of time until the defrauded investors of this speaker group also come forward. A look at the list of regulators is advisable before any financial commitment in order to reduce the risk of becoming a victim of investment fraud.
CotextMarkets: Investors want their money back!
Fortunately, the constellation is not as hopeless as it seems. The aggrieved investors can defend themselves and reclaim invested money. At the moment it is not to be expected that the investment fraudsters of CotextMarkets will be caught in the near future, but there is still reason to hope. Especially because the money transactions were made via accounts provided by financial institutions striving for a good reputation. Those responsible undoubtedly failed to check the investors' deposits, some of which were large and therefore subject to controls, and their onward transfer for illegality. Failures of this kind enabled the investment fraudsters to carry out their criminal activities in the first place.
CotextMarkets: They want their money back! How does that work?
Knowing this, investors would not have got involved in business with CotextMarkets. Now the only way left for them is to seek compensation for the loss. Many investors cannot even imagine that there is a real chance of ever seeing their money again. Probably all of them are now asking themselves whether they can get their money back? Clearly yes! There are numerous legal bases to fall back on. The generic term is "money laundering". When investment fraudsters collect money, the offence of money laundering has been committed. Financial institutions are obliged to take action against money laundering. This is where one starts with good chances of success. First, essential questions should be answered. Where did the funds moved by CotextMarkets go? Can investors somehow get back the capital they invested with CotextMarkets? What measures are advisable now? A lawyer specialised in investment fraud will be happy to answer such questions in detail
CotextMarkets: Who can help?
What to do in case of investment fraud? What help can victims of CotextMarkets hope for in the event of investment fraud? Victims of CotextMarkets will ideally find the help they need from an experienced investment fraud lawyer. He will be able to take care of your CotextMarkets case both in terms of the criminal aspects of the investment fraud, as well as the recovery of funds and possible claims for damages. A lawyer for trading is also a possibility, because he is also familiar with the methods of fraudulent brokers such as CotextMarkets.
CotextMarkets: Follow the money!
The internationally active investor protection law firm Resch Rechtsanwälte has been pursuing abuses of this kind on the non-regulated capital market for more than three decades. From this point of view, the conduct of CotextMarkets is nothing new. Over the years, Resch Rechtsanwälte has developed an efficient range of instruments for tracking down missing capital and tracing the flow of money. In times of the Internet, it has become really difficult to make funds disappear. The quicker those affected follow the trail of the money, the better the chances are that they will see their invested capital again. Now it is important that those who have been harmed by CotextMarkets react immediately.
RESCH Attorneys at Law - Experience in Investor Protection since 1986
If you have been a victim of CotextMarkets and want to know if and how you can get your money back, call +49 30 885 9770 or fill out the questionnaire. You will receive a free assessment of your case.
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