Scams are not born equal. Some scammers are what you can describe as daring capers in that they go all the way to steal from as many people as they can and while at it do everything possible to protect their scams as we shall see with Minexpay.
Minexpay is a project that announced itself as a payment processing platform that would provide debit card that allows users to access their cryptocurrencies through normal ATMs.
The project had some buzz around it with a fancy website that described what the project would do assuring investors that it was one of the best in the market.
The idea of being able to pay with cryptocurrency from anywhere was an interesting one that many investors bought into the project.
Fast Secure Global Transaction On Crypto Card
The promoted features of the Minexpay card were fast payment that the company claimed would enable holders complete transactions in 3 seconds.
They were assured of security of the platform highlighting cashback or zero fee depending on the type of card purchased by the user.
The card was also promoted as supporting multiple cryptocurrencies with such versatility that users can make payment from any part of the world wherever the merchant supports the use of cards for payment.
Although the project did not list the team behind it on the site, there was no reason to suspect that Minexpay was a scam until it released a statement that contradicted its whitepaper which says that they would issue the cards thorough an off-shore bank that belongs to the company.
The document stated,
“How does MinexPay work?
All MinexPay cards are issued by our own offshore bank with an international license (category B), established and managed by MinexSystems.”
It said that all clients that order the card would become participant of the company’s trust fund which implies that they are managers to their clients.
“The fund, based on the value of said assets, acts as a guarantor of the corresponding credit limit (opened by the bank for the cardholder).
Fees associated to that guarantee are 0.01% per year.
When a client spends his credit limit, the fund immediately sells the cardholder’s crypto-assets at an exchange rate defined on Coinmarketcap.com (at the time of payment).”
An Attractive Proposition Meant to Lure Investors
No doubt an interesting proposition which attracted many investors, however the company came up with another claim that it signed an agreement with a bank CSOB stating that the Minexpay card would be issued by CSOB.
That would not have been an issue even though it contradicts Minexpay claim that the card issue would be done by its own bank. It however showed that the company doesn’t own an offshore bank as it claimed. It also indicated that the claim of owning a bank was made to lure investors into believing that Minexpay was a reputable entity.
The issue would have been overlooked as a minor demeanor had the claim of partnership with CSOB not denied by the bank which quickly released a statement saying that it didn’t enter into partnership with Minexpay.
According to the CSOB statement,
“We have to rebut the claim of @minexcoin, which has announced that we have recently entered into a contract that allegedly relates to payment cards. We have not made any such business with MinexPay and do not cooperate with MinexPay in other areas.”
Not outdone, the Minexpay team came up with another statement claiming that the bank’s rebuttal was due to a misunderstanding between the bank and an intermediary who conducted the deal with CSOB on behalf of Minexpay.
“Dear community, we have faced a misunderstanding regarding our relationship between MinexSystems and ČSOB bank. As you know, we have recently revealed the news that we have successfully signed a contract with the bank for our card project, MinexPay. However, the bank has posted a short statement denying this contract. We want to clarify this situation in this post.
Chain2pay company, registered in Estonia, has obtained licenses for working with cryptocurrencies. There is a valid contract between Chain2Pay and card program manager. At the same time, there is an agreement between the card program manager has a deal with the card issuer. Finally, the card issuer has a signed contract with the bank.”
CSOB Unwavering Stance
The bank was not impressed and made it clear that neither Minexpay nor Chain2pay had any agreement with CSOB. It further highlighted that the inclusion of its name in Minexpay activities is damaging to its brand. A translated version of the last rebuttal obtained by Cryptoinfowatch stated,
“Again we have to respond. We do not cooperate with MinexPay (@minexcoin) or Chain2pay (Mr. Boris Shulyaev). Nobody even contacted us to explain the situation. Such statements are potentially threatening our brand and we are ready to oppose them.”
The bank’s statement affirming that it has no co-operation with Minexpay and its affiliates despite the claims of the latter is indicative that Minexpay is just another scam that has smartly stolen investors’ funds through bogus claims such as bank ownership.
Minexpay seems eager to keep up with its scam and has released a card through a third-party to its users. If this card is another fluke is what we are investigating even as investors of the minexcoin are threatening to sell the token after the September deadline for the issue elapsed.
Minexpay through its illegal third-party card acquisition is expecting to sell thousands of cards and these would be bought by investors who do not look before they leap.
We always advise that you invest wisely since there are many sharks ready to steal from you. This is our top recommendation.