EFX 2.0 – Fraudsters Launch Version 2.0

What would you say about a project that has been so successful in taking people’s money that they have been emboldened to launch a supposed blockchain version of their site?

This is exactly what EFX 2.0 is all about. You may well call it scam 2.0 since it has all the red signals that should tell you that some daring capers are behind it.

History

EFX 2.0 is owned by the same group of people that launched a purported forex trading site called Elitefinfx and have been asking investors for deposits for many months. These entities have done a great job of leveraging a viral system by enticing affiliates with an elusive $20 bonus.

EFX 2.0Just think about it, who wouldn’t want a free $20? But this is as far as it goes since the enrollees are expected to make a deposit to release the $20. They’re then expected to earn 15 percent of the deposit monthly. However, there are indications that the company never really fulfills their promises.

Here is a report sent to Cryptoinfowatch by one of the users of the site:

“I invested with EliteFinFX about 9 months ago.
In that time frame, I had cause to contact support on a couple of occasions. Most recently, it will be two weeks this Wednesday with this being Monday that I contacted them with a simple request. No response!
They tout they pay out 15% per month. That is a total bogus claim! If they are paying 1% per month, you’re lucky!
They are transitioning over to a new way of doing business. Instead of paying out via bitcoin as before, they have invoked their own cryptocurrency. RED FLAG! This will help delay paying out cash because all of their payouts will be in their cryptocurrency. And you can’t trade it anywhere!
I requested to withdraw my money and close my account. Surprise! No response.
Please, please, please…..DO NOT INVEST in this scam. They are not licensed as a financial institution. BIG RED FLAG!
They are desperate for new investors to keep their ponzi scheme going.
Just beware of this scam! Find something more creditable to invest in.
YOU’VE BEEN WARNED!”

Our Investigation

EFX 2.0Cryptoinfowatch team surveyed the mood at the group Telegram of the company and found out that there certainly are many complaints against this site. We already wrote a review of the 1.0 version of the site which you would access here.

Nevertheless, it is no surprise that the fraudsters have moved on to the 2.0 version after warning participants that no complaints about version 1.0 would be entertained:

Interestingly, investors who complain about the fraud called Elitefinfx or EFX 1.0 are removed from the group. When we got this report, our investigator asked a simple “Has anyone been paid by this site?” But was quickly removed by the admin.

That is vintage fraudsters strategy as they wouldn’t want any doubt in the minds of the prospects.

What better strategy to defraud more people than to launch a version 2.0 under the pretext that it is blockchain based. However, a close scrutiny of EFX 2.0 shows that it has the attributes of a fraud.

A Ponzi Scheme

EFX 2.0Despite the fact that the owners claimed that EFX 2.0 is a blockchain project, in fact it claims that their cryptocurrency, EFX coin is an ERC-20 token, they’re asking investors to lock-in their positions to enable them earn some 300 percent of their investment.

As you may be aware, this is the strategy employed by scammers in their quest to appeal to investors’ greed.

Every experienced crypto investor knows that there is no genuine project that makes such projections on the future value of their token when it has not even been listed anywhere.

Our bet is that if this EFX coin is launched, it would be worthless since it has no use case except that assigned to it by the fraudsters behind Elitefinfx.

You can read this warning from Securities and Exchange Commission:

“SEC and CFTC staff have recently observed investment scams where fraudsters tout digital asset or “cryptocurrency” advisory and trading businesses.  In some cases, the fraudsters claim to invest customers’ funds in proprietary crypto trading systems or in “mining” farms.  The fraudsters promise high guaranteed returns (for example, 20-50%) with little or no risk.” 

In the case of EFX 2.0, the fraudsters simply replaced the mining mantra with trading of a cryptocurrency and forex. Interestingly, there is no evidence that these fraudsters paid the participants of Elitefinfx.

Talk of scammers moving from scam to scam while making suckers out of gullible investors.

Who is Behind This Scam?

EFX 2.0It is amazing that many people would send their funds to strangers who they have no inkling about their identity and location. The owners of EFX 2.0 are some faceless entities.

If you’re knowledgeable about blockchain projects that are involved in any form of crowdfunding, you’d know that the identity of the team is an integral part of the business.

The cheekiness of the owners of EFX 2.0 stems from the fact that they have already stolen a lot of funds from the investors that were careless enough to entrust their funds to Elitefinfx.

Used Stolen ID

At Cryptoinfowatch, we have always maintained that having a registration certificate is not a proof of legitimacy. There are thousands of businesses registered daily with the intention of being used as front for fraudsters.

According to data available at Company House, the proprietors of EFX 2.0 claimed they’re involved in banking services. This is despite the fact that they have no banking license.

EFX 2.0Furthermore, we found out that the site used the identity of a call girl, MORENO Jenny Lopez Morales Jenny as the director of the company. This is despite the fact that the organizers of the Elitefinfx scam were Nigerians who held the only meet-up in the country.

Obviously, they hoped to create the impression that it is a genuine business and lure more investors into it.

False Blockchain Claims

There is no evidence that this project is blockchain based. As far as we could see, this is an attempt to clone an ICO site, but in reality, what we have is a ponzi scheme despite this claim:

“Blockchain technology and advanced AI-matching system are just a sample of the advanced features giving Elitefinfx a cutting edge over existing service providers. With fast transactions, no lengthy registration processes, and the transparency of the blockchain, Elitefinfx is bringing financial markets to the future.”

False Value of Token

EFX 2.0According to the site, the present value of the EFX 2.0 is 0.052646 BTC. How could a coin that is yet to be built be valued more than $400? The fraudsters behind this site are saying that a useless token that is unknown is more valuable than established coins such as Ethereum, Monero and Ripple.

The summary is that this is a plan to defraud people who know little about the coin market and how the blockchain technology works. This is possible because many investors do not make effort to research about what they’re investing in but choose to believe information provided on scam sites by fraudsters.

No GitHub Page

Blockchain is a decentralized technology which is a specialized field. In building a real distributed ledger technology project, several contributors sometimes work together. This is why such projects are open source.

In the case of EFX 2.0, despite its spurious claim of being a blockchain project, it has no GitHub page and no single code could be linked to this scam. This is an indication that this is a scam planned by experienced fraudsters but targeting the uninformed.

This is why SEC warns that:

“The only thing that may stand between a fraudster and your money is your preparedness when you are approached.”

Fake ERC 20 Token

The EFX coin is possibly the only ERC 20 based token that is not ETH compliant. Could you imagine claiming that a token built on the Ethereum smart contract platform does not accept ether? You can see this from the site’s FAQ page below.

EFX 2.0

Conclusion

Fraudsters move from scam to scam. Their greatest assets are ignorance and greed of investors. When you’re asked to lock into a position to gain high interest, what should come to your mind is that you’re dealing with a hybrid of HYIP and ponzi scam.

This is exactly what EFX 2.0 represents. Sending your funds to this site would result in losses.

Before making investments online, be sure that you’re dealing with a regulated site that has built online credibility. If it is an exchange, make sure it is not an obscure one. If you’re dealing with an ICO, the team must be people of integrity and competence.

Here is our top recommendation as far as genuine investment is concerned. There are other reputable investment sites but they are very few. Investors lose hundreds of thousands of dollars daily to online investments. Be informed to avoid being a victim.

What experience do you have with the Elitefinfx and EFX 2.0 scams? Please let us know through the comment box below.

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Author: Jofor Humani

Peddling words has been a passion beneath the surface. I speak less than I write...naturally. Aside speaking and writing, I walk too...good for your heart they say. I sometimes do not feel like writing. Then I enjoy quiet times which I use to think and stay with family.

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