CoverCoin - British FCA warns against online broker

The alleged online broker CoverCoin sells itself as a serious platform for online trading. However, there is increasing information that everything is by no means straightforward at CoverCoin. Reports from traders about CoverCoin are accumulating, talking about phone terror, rip-offs and investment fraud. Many have lost their money invested with CoverCoin. Serious doubts are being raised. Meanwhile, many CoverCoin investors are afraid that it is an investment scam.  All CoverCoin investors are wondering if they have become victims of investment scammers? And what can CoverCoin investors do if the suspicion of investment fraud is confirmed? Will CoverCoin investors get their money back? Does it make sense to file a criminal complaint against CoverCoin with the police? Where can I get help with investment fraud?


CoverCoin: Unbelievable information on!
What do surprised visitors have to read on "Using Bitcoin on a mobile device can be done with a simple scan and pay in two steps...You don't need to sign up, swipe the card, enter a PIN or anything...All you need to receive Bitcoin payments is to just display the QR code in your Bitcoin wallet app and let the other party scan cell phone, or touch the two phones (using NFC wireless technology)." This is just a small sample of the implausible claims investors can find on CoverCoin's website. Not a single one of these lofty promises by CoverCoin has been kept. Regrettably, the suspect business practices tend to make for unhappy investors and bad experiences!


CoverCoin: Playing hide-and-seek with the domain entry!
Remarkable for the business practices of the CoverCoin 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 you take a look at the domain data of CoverCoin's website, you will not find any information about the operators. However, one learns that the domain was registered with Hosting Concepts B.V. only on March 11, 2021.


CoverCoin: Who is behind it?
Answering this question will be rather difficult for many investors, as the CoverCoin makers do everything they can to conceal the true circumstances. However, this is nothing unusual. The perpetrators mostly run several of these websites with the same fraudulent business model. These are created in advance, quickly put online and just as quickly shut down. The top-level domain is often changed to deceive financial regulators and law enforcement agencies. But who is the operator? There is scant information about this on CoverCoin's website. The two companies Covercoin Limited and Loandy Corporation are given, but no business address. There is only the obligatory support e-mail address, the two telephone numbers +4794438522 for Norway and +46768444900 for Sweden, and the two mobile numbers 02070431949 and 07782228501. A worldwide search for CoverCoin in the relevant registers leads to no results. This makes it clear that the product in question is a pure fantasy.


CoverCoin: The customer acquisition of the investment fraudsters
Here, the same approach can be found again and again: In order to attract new customers, CoverCoin offers are promoted in all possible media and channels. Often, this involves misinformation. To reinforce the deception, they upload movies on Youtube in which interested investors are convinced with fictitious references. Here, supposed celebrities report on their experiences with online trading and cryptocurrencies, often with the erroneous reference to the TV show "Die Höhle der Löwen". At the same time, an affiliate program is usually started in order to motivate others to beat the advertising drum for CoverCoin.


CoverCoin: 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 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. Usually the investors start with a small sum as employment. Beforehand, investors are also often motivated to install remote maintenance software, such as AnyDesk or TeamViewer on their computers, so that assistance can supposedly be provided with the first steps. In many cases, the computer is subsequently manipulated and unwanted transactions are carried out. In the process, the investment fraudsters also frequently 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. In some cases, even small sums are returned in order to lull investors into a sense of security. Who then does not want to further increase the stakes? But what happens next?


CoverCoin: Repayment of the money is subject to conditions.
Once in, exiting is mostly impossible. Rather, the administrators of the investment scammers tie a repayment of the money to further deposits. This is where employees come in, claiming alleged tax debts and commission payments. If these are settled, it would come to the disbursement of the allegedly obtained profits. The perpetrators send the investors self-made tax and commission statements, often decorated with fake coats of arms. These would have to be paid urgently. A clearing with the allegedly obtained profits, is never possible. If an investor refuses further deposits, alleged profits are converted by senseless transactions into losses and the customer maximally damaged. This is not the end of the horror, but investors are permanently confronted with calls from other dubious providers. This indicates that the contact details of the investors are further traded among the investment fraudsters. In the end, a "savior" regularly comes forward, 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! And of course, the "savior" wants a small fee too - up front!


CoverCoin: scheme of investment fraud?
There is no regulation of the CoverCoin trading platform. CoverCoin lacks authorization from a recognized European 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 authorization 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 13.09.2021. It is also obvious that CoverCoin is a scheme of capital investment fraud. All investors harmed by CoverCoin are advised to contact an investment fraud attorney immediately.


CoverCoin: Where do the fraudsters operate?
Unfortunately, the illegal activities of CoverCoin were not limited to the English-speaking world. Because CoverCoin addresses German-speaking investors as well, it is only a matter of time until the defrauded investors of this speaker group also come forward. Going through the list of regulators is advisable before any financial engagement to reduce the risk of becoming a victim of investment fraud.


CoverCoin: Investors want their money back!
The circumstances are far more promising than they seem. The aggrieved parties can take action against the investment fraud and reclaim their invested capital. As of now, it is rather unlikely that the investment fraudsters of CoverCoin will be seized soon, but there is still reason to hope. Hope because the funds flowed through accounts that were actually provided by reputable financial institutions. They obviously failed to check the investors' deposits, some of which were large and therefore subject to controls, and their forwarding for illegality. Such omissions enabled the investment fraudsters to carry out their criminal activities in the first place.


CoverCoin: They want their money back! How does it work?
With this knowledge, no one would have gotten involved in business with CoverCoin. Now the only option left for those who were deceived is to seek compensation for the loss. Many investors cannot even imagine that there is any real chance of ever seeing their money back. Presumably all of them are now wondering 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 crime of money laundering is committed. Financial institutions have a duty to take action against money laundering. This is where one starts with good chances of success. In this regard, relevant points must be clarified. To which destination have the funds embezzled by CoverCoin been taken? Is there a chance that the bruised investors will get back the money they invested with CoverCoin? What precautions are required now? An attorney specializing in investment fraud can provide comprehensive answers to these questions.


CoverCoin: Who can help?
What to do in case of investment fraud? What help with investment fraud can CoverCoin victims hope for? CoverCoin victims will ideally find the help they need from an experienced investment fraud attorney. He or she will be able to take care of your CoverCoin case both in terms of the criminal aspects of investment fraud, as well as the recovery of funds and possible claims for damages. A trading lawyer is also an option, because they are also familiar with the methods of fraudulent brokers, such as CoverCoin.


CoverCoin: Follow the money!
The internationally active investor protection law firm Resch Rechtsanwälte has been investigating such abuses on the gray capital market for more than three decades. As a result, CoverCoin's methods are nothing new. Over the decades, Resch Rechtsanwälte has developed a powerful set of tools for tracking down misappropriated investments and tracing the flow of funds. Making funds really disappear has become almost impossible in the age of the Internet The more swiftly investors follow the money trail, the better the chances are that they will see their invested capital again. Above all, it is important that investors harmed by CoverCoin take action without delay.


RESCH Attorneys at Law - Experience in Investor Protection since 1986
If you have been a victim of CoverCoin 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.