Cylwex.com Review – Exploiting The Social Network Crypto Craze

We’ve come across another mass produced crypto fraud platform, the copies of which we’ve already encountered on several occasions. The site itself is created using a template, with nearly all of the content being repurposed time and time again.

Cylwex crypto scam is most active on social networks, so see the remainder of our Cylwex.com review to learn more about online safety and recovery options.

Broker status:	Unregulated Exchange
Regulated by:	No license
Operating Status:	Active Crypto Scam
Known Websites:	cylwex.com
Blacklisted as a Scam by:	N/A
Owner:	N/A
Headquarters Country:	Malta (alleged)
Foundation Year:	2023
Online Trading Platforms:	Web trader
Mobile Trading:	Not available
Minimum Deposit:	N/A
Deposit Bonus:	Not available
CFD Trading Option:	No
Crypto Asset Trading:	Yes – BTC, ETH, LTC
Available Trading Instruments:	Crypto
Maximum Leverage:	N/A
Islamic Account:	Not available
Free Demo Account:	Not available
Accepts US clients:	US clients are not accepted
Global Fraud Protection Experts’ Verdict:	Refrain from investing in shady crypto offers!

Incognito Owners

There’s no way to find out anything about who owns this shady platform and what their legal stance is. The website is devoid of any legal information and corporate details as well as firm history and leadership.

Legal documents are the only place where the jurisdiction is mentioned. It seems that all of the disputes are solved by the official courts of Malta. That would imply that the company has obtained a VFA provider license but they still do not appear in the MFSA database of regulated entities.

This also means they do not follow the ESMA standards governing the EEA. Access to the compensation scheme is denied in case of loss and you cannot expect the premium security standards like FCA, CySEC and BaFin licensees provide.

This is, by all means, a fraudulent campaign, so stay away from it. It would be safer to choose a well regulated platform instead of cheap swindling attempts like Koytex that also claims to be located in Malta and is completely unlicensed.

Preying On Young Investors

In order to set a foundation for fraudulent activities, this particular fraud uses boiler room agents that operate on social networks. The firm is infamous for abusing multiple Cylwex TikTok profiles to reach out to their audiences.

This particular network is mostly populated by the younger demographic, who have little to no experience in the cryptocurrency markets. To them, claims of various crypto airdrops and giveaways seem like an opportunity to grow wealth overnight.

All it allegedly takes to become eligible for these promotions is to invest a certain amount, which inevitably ends up lining the schemers’ own pockets. There is still a way to recover the stolen assets, however, so get in touch with our legal experts for help.

Most Affected Areas

Because of their heavy prominence in social media, the Cylwex investment scam has managed to defraud an alarming amount of investors in a short timespan.

The website was launched in October 2023, and the majority of their victims so far live in these areas:

• Colombia
• Peru
• Argentina
• Mexico
• Ecuador

Crypto frauds have become widespread as of late, with BitGamo being another example.

Second-Rate Trading Software

The Cylwex platform is a good example of what trading on a budget means. The web terminal provided is devoid of any useful features that could be found on premium software solutions. Only elementary functionality exists, and even that is questionable, considering how often these terminals are abused for the sake of manipulating victims into more deposits.

If you risk downloading such a software, you also risk infecting your machine with malware used for data stealing. So think twice if investing with this scheme is worth it, considering that not only your capital is at stake.

Small Number Of Listings

Although at first glance it may seem like the Cylwex exchange offers a wide variety of instruments, it falls short of the current industry average. Trustworthy exchanges usually offer tens of thousands of coins and tokens listed, while this faux company only offers the most popular ones.

The selection only includes cryptocurrency pairs like BTC/ETH, BTC/USDT, ETH/USDC, LTC/USDT, XRP/ETH and ADA/BTC for example. If you’re looking to purchase any crypto assets, you won’t be able to do so through this service. The swindlers have linked various other providers for this purpose, nearly all of which are bogus as well.

It seems as though the news that the NFT market suffered a nearly fatal crash recently did not reach the fraudsters, as these assets are advertised as “coming soon” to the platform.

Registration Difficulties

Although it may not seem so at a glance, the account creation process is far from easy or swift. Only a certain type of email addresses are accepted, and it’s those hosted by mailing service providers that do not meet the highest security standards.

Otherwise, there’s no information on specialized account types or specific packages and what they feature. Not even the minimum deposit requirement is revealed. There’s certain levels that depend on the trading volume, but they only affect the fee structure.

Costly Trading Environment

The starting Maker and Taker fees are nearly 3 times the current average, starting with 0.075%. In theory, clients can earn discounts by reaching certain trading volume milestones and rise through various VIP levels.

Discussing these is a moot topic, since reaching Lv.2 requires a volume of >300 BTC, which is around $11,000,000. You need to trade ≥ 20,000 BTC to reach Lv.7, only to have your Maker and Taker reduced to 0.035% and 0.045% respectively, which is still higher than the average.

The deposit and withdrawal fee for the BTC benchmark are 0.00005 BTC and 0.00013 BTC respectively.

Referral Pyramid

Victims are encouraged to get more clients to join the platform by further disseminating referral codes on social networks. As a reward for this effort, the referrers receive 0.1% of the commission charged to a new client, as well as a 40% cashback for their own trading commission. Tiny rewards notwithstanding, this is another mechanism intended to entrap new people.

Compromised Wallets

The payment processors used in the process of scamming customers are well known for participating in such deals before. We’ve already warned our audience of Moonpay and Mercuryo, involved with a number of financial swindlers that use these payment services. The majority of them have been blacklisted by financial authorities worldwide.

The fact that this portal allows only deposit in crypto but allegedly offers withdrawals via bank wire transfers is also a clear sign of potential money laundering attempts. Yet another solid reason to avoid this sham.

What You Can Do

Pinpointing safety issues while investing in crypto online was a primary goal of this review. For any more questions on this concrete provider or any similar one, we’re here to share more details and analyze the circumstances with you. We can also help you report the con and attempt to recover your lost funds.

Our legal advisors have the means to track the crypto transfer and help you locate your stolen capital. For more information, please schedule a free consultation via our online chat.