Caution! Crypto5mining is an offshore company! Your funds may be at risk.
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Crypto5mining Key Facts
🔴 Crypto5mining offers questionable bitcoin mining investment opportunities – a clear sign of a scam!
🔴 Crypto5mining forges crucial contact information – beware!
🔴 Crypto5mining a license for the provision of its services – a huge red flag!
🔴 Crypto5mining’s domain has been registered only recently – another off-putting detail!
Crypto5mining products and services
Crypto5mining is yet another scam that hops on the crypto bandwagon to try and defraud its victims – the company offers contracts on crypto mining. Expected revenue is never mentioned, but we can assure you that whatever Crypto5mining promises – usually incredible returns in the case of such scams, it cannot and does not seek to grant you.
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.
Crypto5mining company and regulation
Crypto5mining is not a licensed company – we checked with the US authorities since the company provided us with an address from the States, and we did not find anything on it. This is quite the red flag, as you should expect all firms, especially investment ones to have a license from a regulatory authority.
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.
Crypto5mining address and contacts
Crypto5mining provides us with the following address – 4540 N Brawley Ave Fresno CA 93732 United States and the +1 661 786 2988 phone number – both of them are fake, as we discussed – the company is not licensed to operate in the States, so how can it have an office there?
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.
Crypto5mining website info
Crypto5mining’s domain has been online for about four months at time of writing – this means that the company is incredibly young. What’s more, the domain is not popular enough for SimilarWeb to list it on its index, which is another red flag. The IP address it is hosted on is 184.108.40.206 – there are over 30 other scam domains there, the ones we have reviewed available below:
Crypto5mining’s owners do not live up to another principle of transparency in that they do not reveal their identities to WhoIs lookups.
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.