Cryptofonix – Trading With This Broker Is Pretty Risky

Cryptofonix is an anonymous online crypto trading platform. The main focus of our Cryptofonix Review is the legitimacy of this dubious broker. Can you trust Cryptofonix and actually make profits?

In order to find out, you will have to read more about the broker’s legal background, trader reviews, trading platform, instruments, leverage, and payment methods.

Is Cryptofonix Regulated?

When it comes to Cryptofonix’s legal background, we know only one fact – this brokerage is run by Crypto Arby Trade Limited, incorporated on July 4, 2021, in the United Kingdom, according to gov.uk. Since this entity is based in the UK, it would have to be registered with the local Financial Conduct Authority (FCA), the financial market regulator.

We checked the database of the FCA but did not find any such company, meaning that Cryptofonix has been illegally providing services. For that reason, we do not recommend you trade with this crypto broker. Avoid luxe-capital too because this scammer has been blacklisted by the FCA.

Our suggestion is that you find a reliable provider that’s licensed by top-tier authorities such as the aforementioned FCA, the CFTC (US), ASIC (Australia), CySEC (Cyprus), BaFin (Germany), CONSOB (Italy), etc.

Where Does the Broker Find Victims?

How long has this broker been active and who are the users of this platform? According to whois, the Cryptofonix website domain was created relatively recently – April 15, 2023. Predominant users of this platform are traders from the following countries:

Needless to say, an unlicensed provider such as Cryptofonix has no business in these domains, especially not in the US where the regulations are the tightest in the world. If you need help recovering your funds from Cryptofonix, give us a call.

Traders Reviews of Cryptofonix.com

For this section, we decided to check out popular forums such as Scamadviser and Trustpilot. On the latter’s site, Cryptofonix had only four reviews at the time of this writing. The trustpilot users all mentioned a certain bonus and how they were unable to withdraw funds without paying an upfront fee.

I risked the entire sign-up bonus of 1000 usd for 30 days and when I finished my wallet the balance increased to 1569 usd, I made a withdrawal and it turned out that I had to make a deposit of 80 usdt if I wanted a withdrawal to be processed…the point is there is no free lunch..

– Trustpilot user, May 24, 2023.

You should know two things here. Firstly, UK brokers are banned from awarding bonuses and secondly, it is illegal for a broker to demand an upfront fee before performing a withdrawal request. On scamadviser.com, we found two complaints against this broker, both users confessing that they were scammed.

They are being smart about carrying out their scam, asking for ridiculous amount of fees for tax before you can withdraw…

– Scamadviser user, May 12, 2023.

Trading Platform & Conditions

Cryptofonix was not exactly specific about the available trading platform. It is known that the platform can be accessed via a browser, meaning it’s web-based. In general, this kind of platform has proven to be ineffective and lackluster.

In other words, not very reliable as some of the better platforms in the industry such as MetaTrader 4, MetaTrader 5, or cTrader. Cryptofonix does not support these platforms, which is a big disadvantage.

Cryptofonix does not offer a mobile trading app but the platform can be used on any mobile device since it’s web-based.�

Are There Any Bonuses Available?

Yes, the broker included a deposit bonus. From what we read, this bonus can be as high as 1,000 $. We already pointed out that bonuses are banned in the UK and other domains under the European Securities and Markets Authority.

Illicit brokers typically award bonuses with strings attached, i.e. requiring traders to reach an insane trading volume using the bonus before being eligible to withdraw funds. Cryptofonix does not have such a clause in the Terms of Service but the broker does demand traders to pay illegal upfront fees.

Available Trading Assets (Market Tools)

Crpytofonix offers exclusively cryptocurrency trading. There are over 40 available digital coins that can be traders against US Tether or in the case of the most popular coins, against the US dollar. Here are some examples of the available crypto trading instruments:

• BTC/USDT;
• ETH/USDT;
• LTC/USDT;
• ADA/USDT;
• BTC/USD;
• ETH/USD; etc.

Choice of Investment Period

Instead of trading accounts, Cryptofonix offers investment periods:

• 1 week – return on investment (ROI) of 10%;
• 2 weeks – ROI of 25%;
• 1 month – ROI of 70%;
• 3 months – ROI of 250%.

You have a profit calculator on the broker’s website that tells you how much you will allegedly earn if you trade with Cryptofonix. As you can see, these returns are pretty lucrative and tempting.

It is impossible to predict profits in such a short period of time, especially considering how volatile the crypto market is. If you lost money to these investment plans, please contact us to recover it.

Referral Program

Although it is not mentioned on the website, another Cryptofonix review suggests that this broker offers a referral program, and we wouldn’t be surprised if that’s true. Why? Because when illicit brokers offer a referral program, it’s usually a Ponzi scheme in disguise.

A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. Scammers that engage in a Ponzi scheme focus their energy on attracting new clients to make investments. This pyramid model has the purpose to make the one on top richer than everybody below.

This is yet another reason why fraudulent brokers such as Cryptofonix and po-trade cannot be trusted. Please do not draw your close ones into this scheme.

Customer Support

At the bottom of the website, Cryptofonix left a Telegram app download link. We assume this is the main communication channel between the broker and the traders.�

Scammers are known for inviting traders to private WhatsApp chats and Telegram channels where they present their enticing offers. The website does not feature any phone number or email and several links such as Trading and Support can only be accessed after registration.

Cryptofonix Withdrawal

Since the whole theme of this shady platform is crypto, deposits and withdrawals also go through crypto. Cryptofonix listed all the available crypto coins that can be used for payments as well as the related fees.

According to the list, the minimum deposit is 0.000399 BTC (~10 $). The deposit fee is 1% while the withdrawal fee is 0.000040 BTC (1 $). It’s not a lot but still, you will hardly make any profits with this broker so please do not invest.

What Should I Do If I Have Been Scammed by Cryptofonix?

Cryptofonix is a relatively new cyber trading scam, focused on cryptocurrencies. Active since April 2023, this platform is mainly aimed at traders from the United States, Indonesia, and Nigeria.

Several traders have pointed out that Cryptofonix demands illegal fees when it comes to withdrawals. Furthermore, this platform is not regulated by any financial market authority. Our verdict is that this Cryptofonix is a fraud and that you should not trade with this broker.

If you are a victim of the Cryptofonix scam, book a free consultation with our experts. They can trace your crypto transaction using CipherTrace.