Beware! Bit-rocket is an offshore broker! Your investment may be at risk.
Bit-rocket Key Facts
🔴 Bit-rocket offers questionable bitcoin related investment opportunities – a clear sign of a scam!
🔴 Bit-rocket is quite deceptive with crucial contact information – beware!
🔴 Bit-rocket lacks the appropriate license for the provision of its services – a huge red flag!
🔴 Bit-rocket's domain has been registered only recently – another off-putting detail!
Bit-rocket products and services
Bit-rocket offers investment plans with impossibly high return rates – upwards of 4.5% hourly. This is not possible for anyone to achieve – Bit-rocket is simply looking to pocket your money.
People should always be cautious when dealing with businesses offering enormously high yields because it's scammers' trait to promise big and create unrealistic expectations. In reality, regulated financial companies cannot secure more than a few percents annually with their fixed-income products. There is a huge discrepancy between these offers and the regulated companies standards. Judging by the products and services they sell, we suspect it's a scam, so beware.
Bit-rocket company and regulation
Bit-rocket is not a licensed firm – that much is immediately clear from the fact it presents us with a certificate from the wrong government body in the UK – the Companies House. But the UK regulator is actually the FCA – without a license from it, we cannot accept Bit-rocket to be licensed.
The US financial services regulation is very complex in the USA. Derivatives markets regulation is a responsibility of CFTC and NFA. Forex brokers and most of the investments companies have to be NFA members and CFTC registered to operate in the USA. On the other hand, securities markets are controlled by the SEC, a government independent agency responsible to maintain the integrity of the financial markets.
While SEC focuses more on the procedure regulation insisting on financial reports and management discussion and analysis, NFA and CFTC impose pretty straightforward requirements. To become authorised the companies have to provide 20 million USD in paid-up capital, which is considered a guarantee that the businesses can survive in turbulent times and pay whenever they have to.
Other customer protection measures include clients’ accounts segregation and leverage restrictions for forex brokers- 1:50. Also, CFTC brokers’ clients are not allowed hedging, which is one of the very unique US features. Unfortunately, the cryptocurrencies regulation is still inept, so traders and investors should be wary when dealing with crypto offers.
Bit-rocket address and contacts
Bit-rocket claims to have an office on the following address – 25 Plumstead Road London United Kingdom SE18 7BZ. This is not possible – as we discussed, the company is not authorized to deal in the UK.
Transparency is crucial when talking about brokers and investment companies, and it's part of the regulatory framework. The regulated companies are open to financial authorities following certain transparency rules, so it's generally unlikely to conduct fraudulent activities. They are also bound to provide the public with crucial information about themselves, making it easy for traders and investors to confirm the company's legitimacy.
Bit-rocket website info
Bit-rocket operates on a domain that has only been around since February 2021 – making it about three months old at the time of writing. Such recent domains are a huge red flag- as are unpoular ones. Bit-rocket is both – SimilarWeb does not even list the domain on its index due to the low traffic it receives.
The owners of the domain have covered themselves up and are not available to a WhoIs lookup – another breach of transparency. Furthermore, the domain is hosted on the 146.59.24.183 IP address – there is just one other website co-hosted there that is now derelict.
Scam warning
We paid utmost attention to the regulation and transparency in the sections above because it’s mandatory for trading and investments. Pretty much each company offering financial services have to be authorised by the local financial authority.
However, some entities operate unlicensed and intentionally run investment fraud. It would be best if you only dealt with companies authorised by the regulators, so always check to make sure they are. Bear in mind that if you trade with unauthorised businesses, you won’t be protected, so it’s very likely to suffer losses almost impossible to recover if things go wrong.
Online scam is trending nowadays with fraudulent websites popping up literally every day. The financial authorities increase the number of warnings issued year after year, but the dangers are still out there and growing exponentially. You’ll realise the hazards when you consider OneCoin scam- it’s still impossible to calculate the total loss, but it’s regarded as 15 billion worth fraud. Make sure to trade with licensed and regulated companies to avoid off-putting losses.