How-to Detect a Scam

11 Signs that something might be off

77

So the other day an acquaintance of mine told me that an acquantaintance had bough a new cryptocurrency. I was immediately intrigued and inquired for more details. I was then sent a website that proclaimed to know the secret name of the cryptocurrency which will become Sweden’s officially adopted cryptocurrency. They further claim that knowing this name now will help you profit immensely from the coin. To make matters more urgent the company says that they know that Sweden will soon release the name of the coin to the public and then the investment opportunity will be over.

It took me a few seconds to see that this offer is totally a scam. In this article I will show you how you can detect fraudulent websites and not fall prey to a scam.

We will first go through the entire website and comment on the various sections. Then we will start to Google certain things. For the last part I have actually signed up to the website and immediately received a phone call. I will also share that call with you. I did not proceed further as any further steps would have required me to send money to them and I wasn’t willing to do that to proof a point.

Here you can see a screen capture of the entire website from kryptonexlabs.

The Red Flags on the Website

1. HTTP vs HTTPS

The first thing we notice is that the website looks quite nice. It does have a great design and it looks like a great opportunity at first glance. The very first clue that something is wrong can be found next to the URL:

Chrome Browser warn us that the website is not secure.

Firefox also warns us that this is not secure.

Usually websites will use https. What this means is that all communication with the website is encrypted and a hacker can’t easily read what you are communicating. This is especially important on websites such as online banking or other financial sites where you store money. For normal websites it is still good practice. So not having an https website might be a first indicator that something might be wrong.

2. Celebrity Endorsements

So six famous people are all supporting this particular cryptocurrency. This already seems rather fishy. If it were such a great opportunity for investment and these six people would seriously endorse it then the opportunity wouldn’t be so secret anymore. Just quickly using Google will show you that the only results for Bill Gates and Sweden will be from kryptonexlabs.  Especially considering what he posted in a recent Reddit AMA it’s unlikely he would endorse this particular cryptocurrency.

3. Really high profits

So an investment of 1 EUR should turn into 3200 EUR within a few months? I have a few issues with this statement. First the number 3200 just seems random, why not 2500 or 7000? There is also no rationale as to why this should happen apart from very flimsy comments about buying before anyone else gets a chance. Also what is Old Money supposed to be? Swedish Krona? Also they seem to want to indicate that you need to buy this Sweden coin now because later on there will only be 300’000 more coins. (If there are 28’700’000 coins for sale now and the total supply is 29’000’000 then that only leaves 300’000).

4. Feature Buzzwords

  • Decentralized: So the cryptocurrency of a country is decentralized? Why would a country issue a cryptocurrency that is totally out of their control. I guess Sweden is quite forward thinking and modern, but still very unbelievable.
  • Secure: Well yes alright that is the feature of each and every cryptocurrency out there…
  • Public: Same as with secure… What is so special about this? If you don’t know what a blockchain is read my article here.
  • Anonymous: First the sentency as grammatically false. It should be Anonymity. IF you have anonymity then you are anonyomouns. Apart from the grammar mistake (btw excuse my own mistakes as English is not my first language) the sentence is also technically rather unrealistic. How should a user be able to define something in a program written by someone else. Even if this were possible what would be the motivation behind this feature for a coin that could be used in Sweden?
  • Digital: Well that’s news… Same as secure and public, it’s just a fact of what a cryptocurrency is.
  • Stable: Pretty much every cryptocurrency (there are some exceptions) is stable.

So we have 6 features that might at first glance look like a really cool thing, but their totally not.

5. The Video

There is a video on the website. It is quite well made and looks professional. However the content is total rubbish. I’ll write down a transcript for you so that we can analyze it. I am going to mark some of the parts so that you don’t have to read the whole thing if you don’t want to. (I’m actually feeling brainwashed after having watched that video 5 times to write down the transcript).

It’s finally happened. For the first time ever a major 1st world country, Sweden, has officially backed a new, emerging cryptocurrency and will be using it as the official coin of Sweden! You heard that right, Sweden has decided to beat all other countries to the punch and has officially backed a crypto and will be promoting it for use within their country and abroad. This is huge news for the financial world as it’s not only the first time a major government has endorsed crypto, but Sweden is going 10 steps farther by actually naming a certain coin as their official cryptocurrency. We don’t have to tell you what this news will do to the price of that coin once released. It will immediately skyrocket and continue towards the moon for months and years afterwards. Want to know the best part of this news? They have somehow been able to keep the name of this coin out of the public. Only a very small select few “in the know” have caught wind of the name of the coin, and all they have to go by are rumors. Just based on these rumors alone the price of this coin has gone up 700%. Once that news becomes official and public knowledge, the price will go over the moon. Consider yourself very fortunate for landing on this page, because Kryptonex Research Group has been chosen by Sweden as their firm of choice for promotion and selling of this coin.

Because of this, Kryptonex Research Groub is the only group to currently have access to the name of Swedens official coin. We’ve signed a large non-disclosure agreement and are only able to reveal the name of that coin to our customers. That’s right, all customers of Kryptonex Research Group are given the name of Sweden’s coin before the general public has any idea what that coin is. The value of this can’t be overstated, as this coin will certainly moon in the long term as well as the short term. Kryptonex Research Group’s customers will have the ability to buy the coin while it is still incredibly cheap and undervalued and before the incredible spike in price this coin is sure to make once the name of the coin is released to the general news cycle. We’ve been informed by Sweden that they will be issuing a press release revealing the name of their official coin within days. At that point this video will be taken down and we will have to shut our doors to new customers and focus our efforts on our current ones while the frenzy over this coin ensues. If you’d like to get access to Sweden’s coin then become a customer of Kryptonex Research Group while you still can. Simply fill in the form on this page and one of our friendly agents will contact you through the next steps.

So there are a few things I would like to point out regarding the text.

  1. It creates urgency.
  2. It makes you feel like you’re in on a secret.
  3. It seems like this Kryptonex Research Group must be trustworthy since the government of Sweden trusts them.
  4. It promises great returns.
  5. It’s all complete and utter nonsense.

Let me be the one to tell you the name of the Sweden coin. I didn’t have to sign any non-disclosure agreements, I simply had to Google it. Taddaaaaa: E-Krona. It’s really creative.

You can find an official statement from Swedish Bank Riksbank here.

So we just destroyed all credibility that this video is claiming to have. Apart from the name of the coin being out there already more statements make no sense:

  1. Why would Sweden name a certain coin as their official coin? It makes no sense for a government to accept a cryptocurrency that someone else created as their own “national” cryptocurrency. These days it’s quite simple to create a new cryptocurrency, so why would they not just make their own like Venezuela did with the Petro?
  2. Why should a coin with the intended purpose of being used as a means of payment in one country make the price skyrocket?
  3. Why would Sweden charge another company with the promotion and sale of that coin? This sentence is by the way in direct contradiction to Sweden backing a new and emerging cryptocurrency. They can either use an existing cryptocurrency which won’t be their to sell or make their own.
  4. Have you ever signed a non-disclosure agreement? I have… It certainly doesn’t allow you to tell the whole internet what’s inside. Everyone can sign up for their website.

So to sum up my thoughts about the video. The video is quite nicely done, but pretty much each sentence is a lie. I’m no psychologist but I assume that it is also well made from a psychological perspective. There is a great sense of urgency to not miss out on this opportunity, or in the language of cryptocurrency huge FOMO is being spread.

6. The Counter

At the bottom of the page there is a counter:

It seems like a nice thing telling us that over 2 million coins from the 28.7 mio have already been sold. As we are visiting the website the counter keeps going up continuously. The numbers just seemed weird, so I took a couple of screenshots. I loaded the page 2 times and waited for the first 5 numbers to appear:
1 Round:     
2 Round:     
So the counter always starts at the same number 2’131’357. After that it seems to increase roughly 220 coins in each step, I assume that most likely add a fixed number plus a random one to get the results seen above.

The Red Flags on Google

7. Fake News

Interestingly enough one of the first hits when using Google to search for “Sweden official Cryptocurrency” is an article about how to invest in Sweden’s coin with kryptonexlabs. by diasporareporters. The entire post is a How-to guide explaining how you can easily invest. If at this point you want to have a good laugh feel free to read the article.

At this point I didn’t investigate diasporareporters further, but it seems like a very untrustworthy site to me. I assume they got paid to publish the article.

8. The Company Name

So we first get a hit on the dubious article mentioned above and then we get hits from a Block Research Group at ETH Zürich. So not finding the company name or research group name on Google is not a real confidence booster.

Miscallaneous Red Flags

9. No Information about the Coin

We don’t really know anything about this cryptocurrency. What are its features that set it apart from other cryptocurrencies. What problem is supposed to get solved? Usually new cryptocurrencies will have whitepaper which describes the technical details of their new cryptocurrency. (Note: It’s also possible to fake a whitepaper).

At this point we went a step further and signed up.

10. Signing Up Issues

While not necessarily a red flag it’s certainly not ideal that you can’t type special characters in your password. Additionally I wasn’t able to type any ü, ö or ä while filling in my name. But the really bad part started when I got the confirmation email for signing up.

When you fill in your form in Firefox you also get warned about the unsecure connection you have. So your contact details get sent in plaintext to the website, meaning that they are not encrypted. The reason for this is explained in point 1.

11. Plaintext Password

I seriously got my password in plaintext for a financial application. This means they actually know my password since they store it in plaintext on their database. This is totally unsecure. Even if for some reason the website were legitimate this allows hackers to easily gain access to my data. (Update 20th of March 2018: I actually tried to change my password and it is impossible to do so. The form is there but it isn’t functional.)

After signing up it only took 2 minutes until my phone rang and a friendly was on the other line… I’ll write all about this phone call in a second post.

In the following we’ll give a quick summary of some of the warning signs that a website might not be legitimate.

Warning Sign Summary Part I

  1. Browser says that a website is not secure.
  2. Too good to be true celebrity endorsements.
  3. Promise of high profits.
  4. Feature Buzzwords that sound more awesome than they are.
  5. Being urged to do something now because the opportunity will pass.
  6. Weird numbers such as fake counters.
  7. Fake Articles endorsing the website / cryptocurrency / ico.
  8. Google doesn’t find the company or people behind the website.
  9. No Whitepaper
  10. Weird Signup Form
  11. Passwords that get sent in plaintext without any security

Click here for Part II of the story.

If you have enjoyed this article and would like to support the writing of future articles on Cryptohelp.ch, please consider a small donation:



To safe PayPal fees you also have the option to donate cryptocurrencies.
Did you like this?
Tip Sara with Cryptocurrency

Donate Bitcoin to Sara

Scan to Donate Bitcoin to Sara
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Sara

Scan to Donate Bitcoin Cash to Sara
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Sara

Scan to Donate Ethereum to Sara
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Sara

Scan to Donate Litecoin to Sara
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Sara

Scan to Donate Monero to Sara
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Sara

Scan to Donate ZCash to Sara
Scan the QR code or copy the address below into your wallet to send some ZCash:
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. Terms and Conditions

77 comments

  • Zoltan says:

    Dears,

    I unfortunately have invested money into this fraudulent Asictrader (Hellx Corp LP). Some Joey Burton was my personal broker.
    They called me every day more months to try on me to send them investment. They explained me how is it safe and ok.
    Finally I invested 250 eur and started to trade, but infortunately I lost the half of it in the trading so I decided to end it up and withdraw what remain. They sent me not just the remain but the whole investment of 250 eur!
    Next I invested 2000 eur, they told it is protected capital and it will make at least 1300 per month available to withdraw.
    First week it was quiet ok, the traded around 600 eur profit on my account.
    The issue started when I wanted to make a withdraw, they didn’t approved it and slowly ignored all my communication by email or phone, all numbers got out of service.
    Shortly I reported them on UK police as fraud!
    From that time they are not available on phone or email or skype as well!
    So, that’s my story how I lost 2000 euros.
    The system with my account is still alive.
    I’m trying to contact the police whether they could investigate it and get back invested capital!
    It’s a disappointment how fraud people are trying to scam others.
    They for sure are going to be reached by their karma and I’ve learned to be less greed (want want want money or anything)!
    If you can help, do so!

  • Elisabeth says:

    Hi Sara, I am also a victim of Capital-Traders who lured me into the fake Swedish cryptocurrency. They just won’t process my withdrawal requests and therefore have lost all my investment of over 50’000 Euros. When asking for withdrawals one has to send scans of ID cards and credit card details (with cutout access numbers however). Am in the process of lodging complaint with the Swiss Federal Police against them and Option Solution Online who owns the trading company. What a shame I did not know of your site before getting into this mess.

    • Sara Sara says:

      Hi Elisabeth. I’m very sorry to hear that :(. I hope you’ll be successful in retrieving your funds. My friends acquaintance managed to get his money back from the credit card provider after lots and lots of work… Best of luck!

  • Teodor says:

    The curious thing is that neither the FCA (financial conduct authority) nor the FMA (financial market authority) have ever heard about this “capital traders” website. I was the first one to report it, ever 🙁

  • Teodor says:

    Hello Sara and thanks for your help. Unfortunately I got “seduced” way too easy and now I lost 8000 euros. I can still see the money on the website, but I talked to James, the “CEO” of Capital Traders and he told me that everything is fine, except the fact that the money is already transferred to the Swedish government and that the procedures take too long. Anyway, I called FCA (UK) and FMA (AT), which were unable to help, so I filed a case against them at the police. Hope some good investigators will pick up the case.

    • Sara Sara says:

      Hi Teodor

      Very sorry to hear this. My friends acquaintance has by now received the money back from the credit card company! So there might be a slight hope…

      Best Sara

  • Tibisay says:

    Hi
    I fell for this
    My partner paid $250 as a present for me ..needless to say the $250 disappeared in 3 days….
    This was with Coinpro Exchange.

  • Bruno Lundmark says:

    Hey everyone, me being swedish and pretty new to cryptocurrencies fell for this (very professional ad) straight away. Thanks to me googling their website I found this site and started becoming suspicious aswell. I even called the Swedish nationalbank (Riksbanken) and they confirmed to me that this is A TOTAL HOAX. Stay as far away from it as possible! However I believe I done did mess up. When registering my email with them I used my standard password that I use for alot of sites. None bank account related but still all sorts of sites. Is there anyway I can protect my email with this password or do I just have to change my password for all the accounts linked to this email? Thank you!

    • Sara Sara says:

      I would change all your passwords… It’s probably a good idea anyway if you use the same one across multiple sites. To make your life easier use a password manager like last pass or bitwarden… Best of luck Sara

  • T.L. says:

    In my previous post i forgot to mention that i’m absolutley pro crypto, the chance is just high that governments will take action and we could see this from previous attempts like with R3 Consortium, that their controlled banks will be placed at the entry points to track down everyone who enters the crypto space, no matter if this person is going to be on the legal site but just concerned that whatever he his buying with his own cash is simply his private matter.

    In such scenario it will not be Bitcoin, Dash or Monero or any other cryptocurrency, they will use some protocoll that they control, like Ripple, and if so they can give access, block your account, extend the number of coins or token to their goodwill and it’s just going to be the digitalized version of fractional banking and in the way the used to work eversince.

    Knowledge is Power!
    If there’s something free on internet you pay with your data!
    Data is Cash!

    Read into that space, use google to find reliable sources (no i’m not going to give any links, i’m not facebook pretending to know better what is worth for you to know)

    If you are confronted with strange words, technical terms, feel free to use any translator or google with additional keywords to find them in the right context.
    And soon you’ll find yourself back in a universe of a might be future that you are even able to actively shape and design, a world that your kids will grow straight into, so you’re responsible what they will call you later.

    Every attempt of controling this future by authorities to their own benefit can now be forced down with choosing the right direction.

    State controlled moneys should not become part of it, since the past teached us that it will always lead to major collapse.
    In a future with virtual currencies to pay for daily needs i’m afraid there’s not even chance for Bitcoin to fulfill this role or at least as long as it’s ruled by influenced commiters. It can be a bridge, an index, but nothing thas has a function of payment.
    Especially since there are some self declared Bitcoin Co Founders (Not Craig S. Wright) out there who wants to bring complete anonymity to Bitcoin with Mixers and Tumblers it will rather likley happen that Bitcoin will be banned at all than gaining wide(r) accaptance.
    If the existing pseudo anonymity is shut down, it will just result in exchanges to delist it else the authorities will ask for access to the lightning layer wich is prone to be their way and tools like Wireshark are not unknown to govs.
    This will simply break Bitcoin’s neck and the whole economy built on it will suffer.
    Facing this efforts merchants are far off from accepting any crypto currencies since the laws against any such behaviors are already written down in a way that it’s just one more step for bankers to enjoy us with some kind of centralized crypto currency, just to satisfy those still uninformed masses with their solution because they ask for it. (as their laws lets them interprete it)

    • Sara Sara says:

      Thank you very much for sharing your opinion! It was a really interesting read and actually reflects my own opinion in most points quite well. I’ll take some time later (I’m on the cell phone now) to reply in more detail :). Sara

  • T.L. says:

    Hi Sara, great article about this scamming attempt.
    Unfortunatley Coindesk left their initial vision and mission path long time ago and went over to satisfy their greed with plastering ads on the site that are more related to HYIP’s than any legal crypto business.

    By the way, did anyone mentioned that no such person like Mr. Elias Karlsson does exist in the proclaimed function? 😉

    As seen further up, someone already scanned the domain on whois database (takes just two clicks) to find out that ‘thing’ is nothing but a plain scam.

    Well, maybe there’s some ambitious white hat out there to havij the scam site and delete some folders.

    And Sara, keep up that great work, many hyip admins went over from classic shemes to ICO’s to grab victim’s money with FUD announcements and call’s on people’s greed.

    To sum it up: It was a big portion of those scams who early adopted cryptos, especially bitcoin, before bitcoin went completeley useless due to high fees and lack of acceptance at stores.
    It doesn’t mean bitcoin is bad, (guns, drugs and porn were payed in fiat in pre crypto era, no one cared..) it just was made to leave it’s early ideals. (long story)
    At the high time of bitcoin acceptance in that specific market it was easy to exchange to fiat, withdrawals with the most prominent cards from any ATM were easy and the payment gateways were fast and well developed.
    Around two years back from now the first ICO’s came up, legal at this time and just close related to crypto applications like Antshares, Wings, Waves, etc..
    Hard to find and kinda exclusive. But after short time the first scam ICO’s popped up on HYIP monitors and the market jumped over from the above mentioned classic shemes onto shiny sites, packed with buzzwords and fake white papers.
    This sites are pretty easy to order from third party sites offering bundles including domain registry, UK company registry, funny certificates and a set of the most common payment gateways.
    (BTC, ETC, LTC, Payeer, ADV Cash, Perfect Money,…)
    And many fall for this scams even because of sites like coindesk.

    Now. on one side those scams brought regulators on track, on the other side most of the card providers got forced to shut down their Visa and Master Card related service, stopping ALL the ways to even legally use any of the existing cryptos and therefore the whole economy (willingly or unwillingly) fell victim and stopped their services by january this year.

    At the time when they were still up running many outside of that gambling industry got excited about crypto, as side effect the network got spammed with lots of tiny transactions resulting from faucets and of course in and outs from HYIP sites thus led to network congestion and terrible high fees, because unfortunatley the mechanism to determine fees got changed at about the same time and an avalance of stucking transactions occoured.

    Things got worse and worse, asided by the discussion on Bitcoin, Bitcoin cash, Segwit adoption and Lightning Network and the ongoing scaling debates.

    New actors popped up, claiming to be able to have the one and only solution and attracting people already animated by the hype around cryptos spread by mainstream and social media.

    In my opinion this is in clear favour of all the planned regulatories from authoryties, but someone need to get burned first to make the rest accepting the coming steps.

    This step will include the complete control of all exit ways into fiat since bitcoin wasn’t able to attract merchants to simply accept bitcoin or other crypto currencies.
    So folks: What will you do with your shiny coins except to hodl or trade them on exchanges for other coins with no real world acceptance?
    Buying in is still easy, even into some so called ‘shitcoins’, but how to monetize any gains from such ‘investments’?
    Beeing your own bank sounds nice, but what if others don’t accept your million worth holdings as payment?
    And last but not least, just beeing able to buy something online doesn’t excuse from not doing any due dilligence, especially if it’s concerning financial stuff.

    Yes, Cryptowhatever, Bitcoin and Blockchain sounds great, but it’s just a small part of a huge ecosystem, built of wallets secured with seeds that needs to be backuped, protocolls and rules and much more that first wants to be explored before blind eyed ignored in a greedy moment and ending up with emptied or blocked bank accounts.
    But the more complicated it is to use cryptos, the more this things will happen and at one point the authorities will implement there own currency as the one and only entry and exit point into this very amazing new economy.
    In this regard i’d like to praise Sara again for her attempt to teach people on how to move in this space securely. Unfortunatley facebook and co made the world turning into a data receiving community, instead of a data searching one even tough those tools are still avilable but for many just to annoing to use, corrupted with fake upvoted entries, thus misleading the searcher or the searcher is at the point where every delivered content is assumed to be true and valid.

    It looks like we all have to move some steps back first (Bitcoin Core devs as well), and reinitate all the aspects of a disrupted economy where everyone could be his own bank, many things are tokenized to communicate with each other and smart contracts are executing given tasks to save us time and money.

    We need to get back at the point were merchants accepted bitcoin as payment and invite others to do the same, else we will find us back in a situation were cryptos are just subject to speculation on the lots of exchanges, unable to buy us a coffe or piece of bread.

    This point includes the ability to not beeing reliant to any kind of fiat money since there would be no need to use any of this gatewas except to buy cryptos with some leftover fiat cash.

    But the longer the whole crypto community is devided, the more unhonest players will enter the market, the more people gettin scammed and the chance is pretty high

  • Adrian says:

    Apart from giving them my email, they got nothing, I use a password manager so the password was generated on the fly and not used anywhere else so that’s another benefit of using a password manager, in that you can have a unique, impossible to brute force password for every site and the Pwd manager remembers all of them for you and fills in all your details for you.
    I’ve never put my credit card details into it so they can’t have that.
    I’m using Last pass and it has been Excellent once you get used to it, but am trying to move over to Keepass.

  • Adrian Peirson says:

    It did sound Great, and I found the link on what appeared to be a reputable site.
    I think this is possibly one of the most convincing scams out there but something didn’t feel right so I just googled KryptonexLabs scam and saw plenty of people warning it was a scam so decided not to invest.
    As they say, if something looks too good to be true, then it possibly is.

  • Lp says:

    I got scammed for EUR 500 on this and am receiving silent phonecalls from abroad (EU)

    • Mervin says:

      Hi, did you manage to get your money back? I fell for the same scam

      • Sara Sara says:

        My friends acquaintance got the money back from the credit card provider…

        • Peter says:

          Hi, I got scamed too for EUR 500 and informed the authorities about that. But when I made a complain about that in my bank, they decided to dismissed it. They said there are no basic grounds for initiating the procedure (VISA chargeback). I need to provide them contract or something, which I haven’t.
          All tips from this site are not enough.

          Can You give me some additional tips?

          • Sara Sara says:

            Hi Peter. I’m sorry to hear you got scammed. Unfortunately I’m not an expert at all in the banking area and have no expertise with procedures for receiving money back from a scam. If the bank says there are no grounds, can you go directly to the credit card issuer? Sometimes it’s not directly the bank that issues the card. Otherwise I honestly have no idea what kind of authorities you can contact and I highly suspect it depends on the country you live in. Best of luck Sara

  • LP says:

    Sarah, thanks, I am also EUR 500 lighter because of this, stopped at sending God knows whom further ID and bank account details. Was down with a bad cold on the day, not thinking straight and got the info on Bloomberg page on 14 March. Plus, phone calls from all over Europe, where there is noone even talking are bothering me. Will have to not only change credit card, but also the phone number. Used the password around quite a lot for minor things, must try to remember where.

  • C.R. says:

    Hi.

    Thanks for a great article.

    On Sunday I FOMOd myself into making a small purchase (I’m usually the one advising against this kind of investment). No idea where my head was. The biggest red flag for me should have been a complete lack of terms and conditions.

    Payment sets up an account with CoinPro.exchange (registered in the Marshall Islands). Payment is made via Dinneloop Shanghai (even though Luxibrink is supposed to be CoinPro’s payment partner.

    A CoinPro agent helped my pseudonym determine that Kryptonexlab was an affiliate and Dinneloop is used for Mastercard purchases. If you look at the Wire Transfer option – they don’t give you their account details, but request your own. Wish I had chosen that route – alarm bells would have gone off and I woudn’t have wasted 3 days sorting out this mess.

    To obtain a refund via the website – that’s tricky. First, you have no contractual agreement with CoinPro (or their affiliate). Second, if you do fall for their Refund Policy, you will need to send them AML items (Passport, Utility Bill) AND a copy of both sides of your credit card. Now ID theft is screaming in my ears.

    I contacted my card provider and they confirmed that more money than the £180 was taken out – but they are handling the case for me. I had to respond to the Kryptonex email to request a refund in full and send this over to my card provider. There is a block on the funds, but at least the scammers don’t get paid.

    Oh I cancelled the card too – as the scammers have all those details, so it’s only a matter of time before the card gets hit again.

    The password for Kryptonex is indeed unencrypted, so if you do use the same password for your email or facebook – change them now – otherwise you may lose access to your accounts.

    In short – do your homework and don’t get FOMOd into making a purchase.

  • Funda says:

    I am ever so grateful for the help and expert support provided on here. I am now %100 convinced that Kryptonexlabs.com is a scam. I was about to invest if I didn’t land on this page (who wouldn’t, it’s tempting when there is a possibility to get rich overnight!) and I am so glad I didnt. When something is too good to be true than it is possibly scam.

    Out of all other red flags, the number counter was an eye opener for me (a bit scary and shocking but relieved at the same time). After trying 5 times, it bacame obvious, and I laughed!! I was happy that I was convinced but also felt a bit like a wilted cucumber that I didn’t spot this

    Also their reply email has no logo, no weblink and no contact information and address. It looks unprofessional.

    On their reply email, it says:
    For support, you can contact us via “Contact Us” button on the software.
    It’s odd that they use the term ‘software’ instead of ‘website’. Their website is a one page website, legitimate companies has multiple pages (certainly if chosen by a government) offering their products and services with proper contact information and names. Their email address also does not fully represent their weblink address.

    Another thing is you never get a phone call from Kryptonexlabs.com direct but different trading companies offering their services, meaning that your details go to places that you’ve not authorised. After registering with kryptonexlabs, I got a call from a company based in London called Bitcoins.com (or something like that) asking me to invest 2000€. I didn’t of course but they do sound knowledgeable though.

    The more you dig in the more you realise it’s a scam, that’s why they give you 24hrs to make your decision which is considerably short for someone who may be new to this.

    • Sara Sara says:

      Think you Funda for sharing your experience and some more details about the scam :). I’m glad you got suspicious! Best, Sara

  • G says:

    Really need to get this info out to more.
    I was unsure if scam or not and has taken 2 days searching for info on Asictrader.com also trading as Hellax Corp. They are an Lp (a very simple company to set up) based Edinburgh. But google the address and it takes to a building with hundreds of PO boxes.
    phone call from a london number saying in canary wharf

  • Alan says:

    I was directed to Capital Traders in Manchester, England and a helpful assistant was on the phone to me almost immediately. I was wondering why advert said coins could only be bought through Kryptonex Research Group but broker in Manchester could assist. The only option given was to pay by credit card and I advised assistant that I did not wish to give my credit card details to someone I did not know – could I transfer funds to a bank account. I received an email telling me to log into their website which I did not do. I was suspicious of the Capital Traders website as it had no information on the company, who owned it or names of the directors. Normally a website would have this. I then saw your website which confirmed that this is a SCAM. AY

  • konrad says:

    Thank you Sara.
    I am from Australia and I fell for this. I entered my details in the same form fill including my phone number and within 5 minutes I received a phone call from a representative of a broker (Prime CFD) wanting me to complete their form and to deposit money.
    I was shocked at how fast they responded and was put off straight away.
    I should have researched first – now they have my phone number.

    I hope people see this and are aware that it is a scam.

  • Juan pianist says:

    Hi i am not really in cryptocurrency but i enjoyed your lógic and detectivesque work!
    Another point: how i learning about this? Because i clicked on a News titled something like “Referéndum in Sweden decides not to accept the euro”, what leads to a tutorial about a Guy that slept 4 hours and WaS twice as Rich.

    • Sara Sara says:

      Shocking… But Facebook and Google as well well as Twitter are going to ban all ico ads from what I read. I don’t really think this is the way to go 🙁 it makes it much harder for the legitimate projects to get funding…

  • Senza says:

    They advertise on facebook. How in earth???

  • Willy says:

    Wow, i give it to you. I was about to put in some money but i withdraw because i did not see http(s). Excalty all that i read here is what i actually noticed. I too did not put in my real password for my email account i sent to them. Everything was just to good to be true.

  • Lem says:

    Thanks from France. I just entered my name and a password I don’t use elsewhere, then quickly had some doubt on the poor redirecting to payment platform. I hope people will find your page before getting scammed.

  • Tony says:

    We almost got scammed today but we were very fortunate to have found this website. We also saw the exact same post from the crypto company dated In Jan and Feb 2018, verbatim, which made us rethink this investment. Everything happened exactly how it’s stated on this post. Stay away from what looks like a legitimate company. It’s all a scam.

  • Sahir Siddiqui says:

    Yep – I actually registered and received the registration confirmation containing my password (thank goodness I did not reuse the passwords linked to my email account) in plain text. I saw my password in the email and did a double take – went to Google to search and ended up here.

  • Lyn says:

    In this matter I have been contacted by “asic trader.com”, company name : Hellax Corp. LP, Edinburg, Scotland, by phone 5 minutes after I showed interest, urging me to finalize on asic trader.com… in parts of bitcoin..

  • juliet says:

    I entered my password but not any finance details, will this be ok. It is not my password for any banking.

    • Sara Sara says:

      If you haven’t used that password anywhere else you will be ok. If you use it somewhere else change it there :).

  • Neil says:

    I hope nobody has used a password that they use elsewhere.
    As it’s plain text they can sell it on along with your card details!
    Also, ask your card provider for a NEW card, the one you used is truly compromised now.

  • Ma. Josephine Renker says:

    Thank you so much sara, I actually registered with them today thinking that they would only send me more information with regards to cryptocurrency and a few minutes later i received a phone call from Kryptonexlabs. I just felt weird about it and told the person on the phone that I was going to talk to my husband to discuss about it and do some more research and the line got cut off. I started researching until i found your article and another article about elon musk not owning any cryptocurrency ( https://www.usatoday.com/story/money/markets/2018/03/15/heres-where-billionaire-elon-musk-has-his-money-invested-right-now/427509002/). This article is such a great help, thank you so much. Is it ok if I share this on my website and my friends as well? Stay kind!!!

  • Andrew Val says:

    Thank you Sara for keeping people informed about this scam, even though they have a very elaborated scheme for making you transfer them money, at the end of the day I have to recognize that I got seduced by the “easy money” promise, so I take part of the blame. I saw 900 Euro going through the sink but it taught me a valuable lesson: “There ain’t no such thing as free lunch”

  • Andrew Val says:

    After registration I was redirected to capital-traders.com where they completed the scam. I wish I had seen this post before… (Learned my lesson) Thanks anyway for sharing and stay away from these guys.

    • Sara Sara says:

      Thank you for sharing your negative experience. I’m really sorry this happened to you!

      Interesting, I was redirected to safemarkets.com, I’ll detail this in the second part of the series which I’m currently writig.

      • Andrew Val says:

        Thank you Sara for keeping people informed about this scam, even though they have a very elaborated scheme for making you transfer them money, at the end of the day I have to recognize that I got seduced by the “easy money” promise, so I take part of the blame. I saw 900 Euro going through the sink but it taught me a valuable lesson: “There ain’t no such thing as free lunch”

  • Daisy says:

    Thank you so much for your research, Sara. Great effort. People smell easy money after the rise of the bitcoin and your investigation will help a lot of people to not be fooled.

    • Sara Sara says:

      You’re very welcome :). Very true. There are so many great projects out there, one just has to find them :D.

  • Nicholas says:

    Thank you Darkyz for your investigative reporting. You saved me from being coned into a bad investment. Thanks to my wife’s thorough research she found your article. All the best.

  • Darkyz says:

    A quick whois lookup will bring up more evidence that is a scam.
    Raw Whois Data
    Domain name: kryptonexlabs.com
    Registry Domain ID: 2220729185_DOMAIN_COM-VRSN
    Registrar WHOIS Server: whois.namecheap.com
    Registrar URL: http://www.namecheap.com
    Updated Date: 2018-01-30T09:19:04.00Z
    Creation Date: 2018-01-30T09:15:17.00Z
    Registrar Registration Expiration Date: 2019-01-30T09:15:17.00Z
    Registrar: NAMECHEAP INC
    Registrar IANA ID: 1068
    Registrar Abuse Contact Email: @namecheap.com
    Registrar Abuse Contact Phone: +1.6613102107
    Reseller: NAMECHEAP INC
    Domain Status: clientTransferProhibited https://icann.org/epp#clientTransferProhibited
    Domain Status: addPeriod https://icann.org/epp#addPeriod
    Registry Registrant ID:
    Registrant Name: WhoisGuard Protected
    Registrant Organization: WhoisGuard, Inc.
    Registrant Street: P.O. Box 0823-03411
    Registrant City: Panama
    Registrant State/Province: Panama
    Registrant Postal Code:
    Registrant Country: PA
    Registrant Phone: +507.8365503
    Registrant Phone Ext:
    Registrant Fax: +51.17057182
    Registrant Fax Ext:
    Registrant Email: @whoisguard.com
    Registry Admin ID:
    Admin Name: WhoisGuard Protected

    So, keep your money safe and question everything that seems to be too good…

    Thank you Sara, you did a great job.

  • Lim says:

    Thank you so much Sara! Your article really helps.. I was about to submit my card details for payments when a friendly guy from capital traders called. Told me he could assist me in getting the funding done through the phone. He also suggested me to start with 1000 euros instead of the minimum 250 euros as that will entitle me to a 100% bonus from their company. That’s when I start to get suspicious and told him I will look for second opinion before committing, and thank God I found your really helpful article. I hope more people can see this post and avoid this scam.

  • Sara Sara says:

    Thank you for providing this interesting additional info. Yes the funny thing is that you will never be able to buy Sweden coin in the process, only invest in other cryptocurrencies once you transfer money (which then never appears in your account as I know from the acquaintance).

  • Peter says:

    Some more info… This is one of their pages for collecting new investors: https://trendsinsmallbusinesses.com/sw1/sweden-coin/

    The page is run by CoinDesk – the legitimate(?) company behind Kryptonex Labs, and the company from which the friendly assistants will call when you sign up. Every link on the page leads to the same page. The Disqus comment section is also fake.

    It is highly likely this is just one of their capture pages. However, a link to this one is currently embedded into the MSN Homepage, and therefore appears very much like news to the eye of the untrained observer…

  • Ryan says:

    Thanks for this article Sara.

    Note: English is not my first language and I’m new to crypto.

    Pease I heard of this site http://www.ogcoin.io a friend of mine from South Africa told me about he was talking to me of their business and what they do in Africa health sector. It feels too good to be true. But I was provided the mother company’s website and customer base in African healthcare indsutries.
    Can you please advice if this a good business to join. I really would love to know what I should do. Thans

    • Sara Sara says:

      Hi Ryan
      Thanks for the feedback.
      I did a very rough and superficial check of the project and it looks legitimate at first glance. However I found this information in the whitepaper:

      Total Token Supply: 750,000,000 OGC
      Total Sale Supply: 150,000,000 OGC will be available to the public
      throughout the initial token offering.
      Reserve: 600,000,000 OGC have been reserved for the Team,
      Developers, Founders & Investors.

      That seems a comparatively very large amount of tokens that is being held by the company itself…
      I also can’t really find any information about the coin online except for on the page you shared.
      You can read their Smart Contract here: https://etherscan.io/token/0x49ab0d7ccd08b1aee6f470d17bc39eb874029357#readContract

      My gut feeling would be to not invest, if you would like a more in-depth analysis you are welcome to fill in my contact form :).

  • Peter says:

    Thank you for this article. I had arrived at almost the same conclusion, but after going through one extra step. The payment was blocked from my bank, and about five minutes later I got a phone call from a friendly person who was going to help me get the payment sorted out.

    However, I started becoming suspicious, and instead of calling the bank, I started googling – and found your article. More than a week after your analysis, the website is exactly the same (it has still only been open for 24 hours 🙂

    In any case – suffice to say that I shelved my plans to buy into this amazing opportunity.

    • Sara Sara says:

      Thank you for providing more details. I’ll write the second part of the article after my holidays and will also provide more info about legitimate cryptocurrencies :).

  • Ron says:

    Thank You for assisting with the information on this bogus scam. It did´nt make sense. That´s when I did a little more research, and found your help. God Bless You!!

    • Sara Sara says:

      I’m glad this article was of help to you 🙂 more articles about how to buy legitimate cryptocurrencies will be forthcoming in the next month.

  • Kendo says:

    So didn’t you just contact the Swedish gov and ask them?

  • Jr says:

    Thank you for this info and I hope a lot more people will read this. I want to invest but it’s so dangerous to just let go of money without doing a little research.

    • Sara Sara says:

      Exactly 🙂 always research everything you want to invest. Most often it takes little time to sort out the scams. To find the real gems takes significantly more time however.

  • Ohne Name says:

    Thank you very much now I saved real money. Congratulations for this information

Add comment