An anomalous behavior was recently reported by the cryptocurrency investment company “StormGain” which proceeded to cancel the profits of its customers, apparently without any reason that can be considered more than valid.
Every trader who decides to invest in cryptocurrencies and every customer with a real account with the StormGain exchange must be fully aware of the high risk deriving from the undoubtedly unclear activities of the company.
StormGain profit cancellation alert
StormGain is a cryptocurrency exchange sponsored by FPM.global, the same company that also promotes other renowned online brokers such as Libertex and Forex Club.
A worrying anomaly in corporate activity has recently been reported that has resulted in the cancellation of a large amount of profits claimed by a client.
The amount declined for withdrawal by the StormGain exchange (FPM.global) was US $ 45,353.1.
Following the client’s request to withdraw the amount of USD 45353.1, StormGain inexplicably suspended any transaction and proceeded to inform the client stating that future profit will be deducted due to the inability to provide liquidity and the need to conduct transactions through the use of a counterparty.
Following the notice, StormGain contacted the customer confirming the inability to withdraw the amount of USD 45353.1 without providing any valid explanation.
Regarding the cancellation of the profit, StormGain believes that “the decision made by the company is based on the dealing desk report”, but that statement is vague, does not provide detailed and clear explanations.
Any trader who decides to invest his own funds through the use of the StormGain exchange, must be fully aware of the high level of risk he runs and carefully evaluate whether it is convenient to trust a decidedly unclear way of acting.
About Online Trading Scams
Widely widespread and used all over the world, online trading allows any trader, both experienced and novice, to invest their funds with various trading strategies in order to achieve the set goals (profits). But like in any other business environment, trading also hides pitfalls and dangers that could cause unpleasant inconveniences.
Forex Trading is undoubtedly the largest online investment financial market, open 24 hours a day, available to any investor with an online real account.
One of the main problems that afflict online trading lies among a wide range of financial brokers (online) that through websites allow anyone (even novice traders, new to the world of investments) to be followed by a broker either via the web and by telephone. And it is precisely in these cases that unpleasant inconveniences resulting from a high risk of scams could occur. Often the scammers offer extremely advantageous trading conditions with a hypothetical almost non-existent risk of loss, thus convincing the trader to invest ever-higher sums.
Immediately after, the trader will see yields drop drastically and to reduce losses to a minimum he will be forced to invest even more capital, and in case of profits, he will have to pay alleged taxes that block the payment of earnings.
This illicit and illegal modus operandi is exercised by fictitious companies that do not present any regulation, for a relatively short period of time, until the disappearance of the broker and the invested money now lost.
In the world, there are various bodies that guarantee the work of online brokers, such as the Financial Conduct Authority (FCA), the AMF, Cysec, which provide a register of regulated brokers and also a detailed list of companies to avoid. If after carrying out a scrupulous analysis, the trader decides to invest in the stock market, or simply proceed with online purchases, he will have to choose the payment method to be used with the same prudence and attention. And in these cases the least common payment method is undoubtedly the bank transfer.
Payments by credit card, on the other hand, are extremely efficient and safe, allowing in certain circumstances to dispute the charges and possibly recover the sum paid. In fact, immediately after having found and explained in great detail the reasons for the dispute, it will be possible to proceed with the operation concerning any reimbursement.
When the trader holding the debit / credit card can consider the disputed transaction to be the result of fraud, he can use the competent authorities in order to have the refund. As for the reimbursements in the event of a bank transfer, the reimbursement procedures will be much slower and will rarely be successful.
Regulatory bodies around the world are fully aware of the importance of ensuring that banks carry out scrupulous checks and procedures to get to know their customers, in order to minimize any risk deriving from any type of fraud.
In the absence of these essential procedures, banks could run serious legal risks, and be accused of mismanagement of the security and control of their customers’ activities which could be illegal.