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Tag: XChangePro

Plutus Racket Update – German BaFin launched investigations

BaFin Ben -
German regulator BaFin today announced investigations into Plutus Racket. BaFin is unfortunately not known for being particularly active or competent but at least it is a first step in the fight against this racket. The Plutus Racket is the operator of a vast network of scams such as Plutus, PlutusPro, Lucrum, LucrumPro, Galore, or Celox. The racket and its scams are facilitated by several payment processors like Praxis Cashier, BitTheBank, XChangePro, and Polish Sales Master Z.O.O. Behind all these scam brands are the same boiler rooms in Bulgaria and the Balkans.

Investor Warning – Celox is another broker scam in the Plutus Racket

Illegal Broker Activities tamir -
We have reported about Plutus Racket scams several times in the last few weeks. So far, thanks to our whistleblowers and with the information provided by victims, we have found the scam brands Plutus, Lucrum, and Galore. Apparently, the Celox (www.celox.live) scam also belongs to Plutus Racket. Furthermore, we have discovered BitTheBank, XChangePro, and Polish Sales Master Z.O.O. as facilitating payment processors. Behind all these scam brands are the same boiler rooms in Bulgaria and the Balkans working with Anydesk.

Investor Warning – CiscoTrades facilitated by crypto payment processor BitTheBank

CNMV tamir -
The problem with financial market regulators' warnings is that they usually come too late. Usually, their warnings are issued only after many investors have complained. Thus, scammers defraud consumers undisturbed for many months. This is also the case with CiscoTrades (www.ciscotrades.com). The broker scam has been active for several months, and only today the CNMV issued a warning. The scam is apparently already disappearing again. As a payment processor, we have once again discovered the Estonian BitTheBank.

Attention – Estonian scam-facilitator XChangePro is no longer licensed!

Illegal Broker Activities tamir -
Estonian BlueData OÜ d/b/a XChangePro has come to our attention over the past few months as a scam-supporting crypto payment processor. It has supported scams like Plutus, MDX500, or Blackstone500. On its websites www.xchangepro.net and www.exchangepro.eu, XChangePro claims to be a financial institution licensed by the Estonian FIU with license number FVR000146 and Ken Kovask as its only director. In fact, this license is no longer valid as of September 2020. Stay away from XChangePro.

Connecting the dots – Plutus broker scam related to Galore and Lucrum

Illegal Broker Activities Ben -
The same boiler room apparently operates the three broker scam brands. Victims report that chat history is shared about at least these three scams. We have already reported about the Plutus scam (here) and the Lucrum scam (here). The Galore scam (www.galore.pro) is allegedly operated by ITM Solutions LLC, registered in St. Vincent and the Grenadines. This entity also operates the Plutus scam. The offshore entity behind the Lucrum scam is Econdary LLC, also registered in SVG. On two BTC addresses, we have discovered a total of barely BTC58 worth more than $3.3M.

Wanted – The Plutus broker scammers, its perpetrators, and facilitators

Illegal Broker Activities tamir -
Yes, the Plutus broker scam is still active and continues to scam consumers and small investors! And yes, these scammers stole millions! We reported about it a few days ago. Until around May 2020, the scam worked with Praxis Cashier and accepted credit cards and later switched to cryptocurrency payments only. Until recently, the scam operated by ITM Solutions LLC processed payments via BitTheBank and XchangePro of the licensed Estonian crypto payment processors Lipan Services OÜ and BlueData OÜ, respectively. We are trying to track down the operators.

CryptoPayIn – Another scam-facilitating Estonian crypto payment processor

Crypto Payments tamir -
Estonian crypto payment processors are a problem for retail investors and consumers in the EU. Especially those who have received a license to operate crypto payment services from the relevant Estonian regulator FIU. Thus, they call themselves EU-regulated payment processors on the website pretending to be a serious business. Unfortunately, many of these licensed crypto payment providers are scam hard-core facilitators and/or are related to scam operators. Most recently, we identified CryptoPayIn at the Financial Resident broker scam as a payment provider.

R4I – Estonian Crypto Payment Processor Bitxtech

Crypto Payments tamir -
BitxTech is a crypto payment processor and exchange operated by CryptoFactury OÜ, registered and licensed in Estonia. Israeli Or Bar, born in September 1987, is registered as the director. BitxTech has increasingly come to the attention of broker scams in recent months as a supporting payment processor. It is also interesting to note that BitxTech and XchangePro use the same application and identical onboarding processes. They appear to be clones or white label solutions.

The Estonian Money-laundering Issue – Crypto Payment Processors BlueData, and Lipan Services

Cybercrime tamir -
The Estonian regulatory regime had been a severe issue for the EU since the inception of its crypto license program some three years ago. Even though the Estonian Ministry of Finance recently announced that its FIU revoked more than 1,000 licenses, there are still about 400 regulated crypto payment companies active in the market billing themselves as "EU-regulated" payment processors. Companies like BlueData OÜ, or Lipan Services OÜ facilitate and/or operate scams. These companies are also customers of the Lithuanian GlobalNetInt which is part of the network.

Investor Alert: Estonian Broker Scam MDX500 and XChangePro

Cybercrime tamir -
MDX500 (www.mdx500.com) was just down for a while and displayed error message 522. It will not be a surprise if the scam goes offline. They all do aftleverer a few months. However, the boiler rooms and payment processors behind the scams are here to stay. In the case of MDX500, these are the boiler rooms that also run Blackstone500, for example. The Estonian BlueData OÜ operated the scam. Client-victims informed us that withdrawals and tradings had been stopped. Goodbye, money then! Another Estonian scam ripped off investors with Estonian regulators and law enforcement doing nothing.

Austrian FMA warns against PumaTS scam broker Blackstone500

Compliance Ben -
The Austrian FMA warns against Blackstone500 (www.blackstone500.com). It’s about time for law enforcement agencies in various EU jurisdictions to take action. In any case, the Leverate Financial Services Ltd which is regulated in Cyprus by CySEC should be approached to identify the beneficial owners and individuals behind PumaTS. The latter is a white label broker platform provider as well as a partner and client of Leverate and operates a vast scam broker network.

FCA warns against PumaTS white-label broker scam Blackstone500

Cybercrime tamir -
Currently, not a day goes by without a financial market regulator warning about one of the scams from the worldwide PumaTS scam broker network. It's about time for law enforcement agencies in various EU jurisdictions to take action. PumaTS is a white label broker platform provider and operates a vast scam broker network. On 22 July 2020, the UK Financial Conduct Authority (FCA) issued a public investor warning against CFD broker Blackstone500 (www.blackstone500.com).

FinTelegram is a cyberfinance intelligence and compliance platform investigating financial crime, regulatory violations, and the rails, entities, and ecosystems that facilitate them. Combining investigative journalism, whistleblower intelligence, and forensic compliance analysis, we map risk across payments, banking, crypto, and offshore structures to support transparency, accountability, and informed action.

Contact us: [email protected]

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