BitTradeVest Review: the company, supposedly operating in Estonia, lacks FDIC insurance and a security license but offers ROIs.
It proves nothing more than the typical invest-and-get rewards MLM scheme. But BitTradeVest does not even demand any daily task or sales, requiring members to deposit money in any affiliate package on the website.
What does the company do? The answer to this question is best sourced from the site (bittradevest.com), which mentions investors, developers, and experts as the trading bloc that make profits for the company partners.
Is there anything to show for so much assertion on the website? We try to find out in this article. Read on below for details.
BitTradeVest Review: Overview
What usually registers as an introduction appears as Insights on the website. Also, the same contents in this section are copied to About BitTradeVest, which attempts to describe the company.
Tip: you are reading an article about an MLM company, an unregulated one (as you will see in the following sections) at that. So, take the clips from the BitTradeVest website with a pinch of salt.
Below is what the company does. (We reference the clip as it appears on the About BitTradeVest webpage)
It means that our analysts and experts in economics and finance do a huge work of monitoring, analysis and forecasting the situation on the markets.
The paragraph following the above highlights in bold print similarly confirms that the company handles securities for its depositors.
So, the platform is supposedly a hub of financial analysts and economic experts, leveraging the pooled resources to maximize profits for investors. It doesn’t state the areas of investment or security type it handles, though, leading our BitTradeVest Review to look for a trade license.
However, we could not find any shred of a security license. BitTrade either lacks this prelim or chooses not to publish it despite its blanket claims of handling financial securities.
There is no voucher, insurance cover, or binders to ensure that BitTtrade keeps good faith with customers. Also, there are no verifiable feedback stories about the company in any online community.
Despite the site not publishing any valuable information about its Admins and business history, it inserts too many compliance clauses in its Terms and Conditions.
We examine this in the following section.
No License, Compliance Clause Skews the Blames Regardless
The company restricts its financial advice to members only by claiming to be a non-publicly available investment service. But members must tick a compliance box that forfeits their litigation rights for ghost investments in the company.
So, what remains?
Our BitTradeVest finds the following caveat in the terms of service.
As a private transaction, this program is exempt from the Estonia Securities Act of 1933, the Estonia Securities Exchange Act of 1934 and all other rules, regulations and amendments thereof. We are not FDIC insured. We are not a licensed bank or a security firm.
Note: we italicize the phrase, and other rules, to highlight the deceit lurking behind this condition.
While listing as a private transaction (even the backdoor deals) grants BitTradeVest the above rights, it doesn’t exempt the company from all other rules.
The specifications for every applicable stricture are available in Regulation D and include the following.
- Disclosure of the business type, owners, and crime records (if any)
- The exemption only applies to the transactions but not to the securities proper.
- Notice of Sales in no way limits the need to disclose the securities being handled.
- Moreover, the SEC D exemption even requires so-called private companies to describe the investment to investors.
In the light of the above, nothing excludes BitTradeVest from describing its investments. Also, being a private company (or handling only private transactions) does not isolate BitTradeVest from applicable security laws.
You can verify the matter at this address, https://www.investor.gov/. Although this may not match the prevalent jurisprudence in Estonia, it suffices for any transparent investment.
Can you earn from BitTradeVest?
BitTradeVest Review: of course, you can make profits from the company until the frenzied compliancy rules stifle the ROIs.
By the way, how does the company even generate 8.5% returns without any verifiable investment? The T&C section on the site puts it down as a private transaction between the company and investors.
Also, BitTradeVest says that it does not offer investment advice. If this bit isn’t compensating too much on the private offering thingy, it already blocks every possibility of applying for indemnification. To this part, the T&C section agrees.
However, no jurisdiction supports absolute immunity for private transactions (which must satisfy SEC requirements). BitTradeVest claims to be free of other laws in this regard, but it errs.
Again, (we reiterate in this BitTradeVest Review) Regulation D for private offering does not demand regulatory licensing over the transaction. Instead, it covers the securities and allows investors to comprehend the stakes.
That is why the following condition on the terms of service makes BitTradeVest a masked MLM scam.
You agree that all information, communications, materials coming from bittradevest investment are unsolicited and must be kept private, confidential and protected from any disclosure.
BitTradeVest is offering investment advice bordering on the efforts of financial experts and economics yet attempts to detach the company from both financial regulation and legal customer protection.
There is no way you can make any headway with this scheme.
On the flip side, here is a more probable scenario than the above antics. BitTradeVest does not handle any trade at all. Its ROIs depend on recruitment, making it a Ponzi.