Caution! CoinSurge is an offshore company! Your funds may be at risk.
CoinSurge Key Facts
🔴 CoinSurge offers questionable products and services. A scam sign!
🔴 CoinSurge doesn’t reveal critical information about their business. Red flag!
🔴 CoinSurge doesn’t hold a license to offer financial services. Red flag!
🔴 CoinSurge is a newly registered domain. A disturbing sign!
CoinSurge products and services
CoinSurge offers cryptocurrency investment plans with unrealistically high returns starting from 5% for 24 hours. The deal is introduced as risk-free and without a contract. That’s undoubtedly a disturbing sign because it’s impossible to have such a return on fixed-income products. In comparison, the legit financial businesses offering fixed-income products can’t provide more than a few per cent annually, let alone for 24 hours. Therefore, it’s a fishy business and a scam.
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.
CoinSurge company and regulation
CoinSurge doesn’t disclose anything about the company behind this controversial investment scheme. It’s a major red flag showing they do not operate transparently. As an investment provider offering fixed-income, they need a license. But they don’t have one. We couldn’t link this website with a licensed business, so it’s a suspicious investment provider that’s not regulated. Beware!
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.
CoinSurge address and contacts
CoinSurge lists 501 Richard Arrington Jr Blvd S, Birmingham, AL 35233, United States. However, we can’t associate this website with this address because there is no trustworthy third-party information available, which would confirm the link. They do not provide a contact number, which is yet another disturbing sign. By far, our analysis shows it’s a non-transparent business, so beware!
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.
CoinSurge.net website info
CoinSurge.net is a domain name registered on 21st of November 2020, so it’s just two months old at the time of writing.
It’s registered on USA IP address: 18.104.22.168 co-hosting 5 websites at the time of writing. Three of these are offering suspicious investment schemes:
Alexa doesn’t even rank this domain, so it’s a highly unpopular website people do not trust, regardless of the age. The Alexa ranking isn’t a key determinant, but the lack of popularity definitely isn’t a good sign.
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.