Key Takeaways:
- On May 19, 2022, Swapnex shut down the platform and redirected traffic to a non-relevant site, while all customer funds could not be withdrawn during the previous 2-3 days and cannot be withdrawn after the platform’s closure. Overall, they stole all of the customers’ money and then vanished.
- The platform shut down its website and Telegram channel. Their website is now redirecting to cotps, which is not allowing them to withdraw money.
- Rather than confessing to running a Ponzi scheme, Swapnex blames its failure on “the market situation.”
Swapnex PTY LTD is a trading firm that specializes in cryptocurrency arbitrage.
Swapnex is one of the most intricate and well-executed long con schemes in the cryptocurrency market. They created a robust system for investors to earn money using their so-called “arbitraging” method, and they managed to persuade many investors to pour large sums of money into their system. They have a well-designed website, a good community support group, timely withdrawals, and a unique revenue model, unlike in the DeFi world where everything is a fork. They continued to add features, such as a built-in exchange for investors to swap tokens and a weekly commission-free trading week.
There have been, however, a multitude of scam alerts. They recruited actors and rented a fake office for their marketing video, they had an excessive referral system, they did not clarify how their “arbitrage” system works, and the worst part was the absurdly high returns.
Assurance of high returns with little risk is frequently a red flag.
Arbitrage in cryptocurrency is a strategy in which investors buy a cryptocurrency on one exchange and quickly sell it on another for a higher price. Cryptocurrencies such as Bitcoin are traded on numerous different exchanges, and the valuation of a coin or token may differ from one exchange to the next.
This is a low-risk method of profiting by taking advantage of price differences between exchanges.
Swapnex.io was shut down on May 19th, and all communication channels were closed (Telegram, Twitter, Facebook & Medium). The website has vanished and has been redirected to the COTPS website, which is another arbitrage platform.
Redirection To The COTPS Website:
COTPS.com is a new Crypto OTC Trading Platform that has been operational since October 2021. It is a platform that promises high returns of 0.3 percent per trade and operates 24 hours a day, seven days a week using the script and macro software to generate passive income. Traders can earn up to 3.6 percent per day, with withdrawals appearing to be instant.
If you go to the swapnex website, you will be redirected to cotps. It is worth noting that Swapnex redirected their web traffic to the COTPS marketing site, not their trading site. They are currently accepting new signups and additional funds. Some people wonder why their website is still up and running. Is it because they continue to take people’s money?
Unfortunately, many investors have fallen victim to their scam; their funds are gone, and there is no way to recover them.
The scammers behind Swapnex have given up after four days of waiting for the “number to go up.” Rather than admitting to running a Ponzi scheme, Swapnex blames its eventual destruction on “the market situation.”
“Greetings, traders!
Traders and investors are concerned about the market situation. Many exchanges are experiencing overload as a result of withdrawal requests. The Crypto Fear and Greed Index is currently less than 25.
Market participants are panicking and selling assets and withdrawing funds from exchanges and projects in order to protect their earnings. At the same time, they continue to incur significant losses because the exchanges hold funds and charge exorbitant transaction fees.”
The platform believes it is simply a middleman between users and the brokers who handle the exchanges. Due to the delay in payments from exchanges, their brokers are currently unable to execute all orders and payment requests.
According to Swapnex, exchanges are simply physically unable to execute all transactions in time due to the high volume of transactions, which affects their work.
Previously, Swapnex informed traders that it was disabling daily returns calculations.
“SORRY, BUT WE MUST QUICKLY STOP ACCEPTING NEW ORDERS IN ALL GUIDE AND AUTO BUYING AND SELLING MODES. ALL EARLIER ORDERS’ FUNDS ARE ADDITIONALLY STOPPED UNTIL THE STATE OF AFFAIRS MODIFICATIONS.”
According to the platform, their Biggest Broker Had also “REFUSED” their “QUESTION TO REFUND THE CASH THEY DESPATCHED THEM TO EXECUTE ORDERS.”
“THE SWAPNEX WEBSITE IS ALSO CONSTANTLY SUBJECTED TO DDOS ASSAULTS BY THIS DEALER. IT’S A COTPS COMPANY.”
Investor withdrawals have been limited to $100 in an attempt to delay Swapnex’s disappearance.
The restriction comes as a result of Swapnex withdrawal delays that began late last week. According to what I understand, all pending withdrawals over $100 have been canceled.
The $100 withdrawal limit on Swapnex remains in effect until May 17th for two reasons:
to see if the crypto market recovers this week, and to give Swapnex’s administrators time to distance themselves from the Con game if it does not (run away with your money).
The scam triggered many people online, and the Twitter community was furious.
Users believe that cotps and swapnex just ruined their communities in the same week.
@bowlegtroy believes Swapnex deserves a special place in hell because they built a lot of trusts, gained a lot of users, and then became rugged after 6+ months.
