Clone Sites Duplicating Sister Platforms
It appears as though a continuous influx of counterfeit websites is emerging endlessly. The moment we uncover one, a fresh batch appears overnight, reminiscent of mushrooms sprouting after rain. All of them assert to be legitimate firms based in Malta. However, the truth is that the jurisdictional regulator, MFSA, has not granted any of them a valid operational crypto license.
Prominent regulators like FCA, BaFin, FINMA, and CySEC have also refrained from endorsing them. It is evident that these deceptive setups aim to exploit crypto enthusiasts by swiftly siphoning off their digital assets. The lack of robust security measures and AML protocols facilitates such activities. Even some regulated service providers cannot be deemed trustworthy, as exemplified by Xaebit, lacking a Tier 1 certificate.
Targeting the Inexperienced and Youthful
Fraudsters have flooded platforms such as YouTube and TikTok with misleading videos, using the likeness of celebrities to falsely claim they are giving away free cryptocurrencies.
This particular scam exploits various unrelated footage featuring Elon Musk, adding subtitles claiming a $9,000 Bitcoin prize for those who join. To claim the airdrop, victims are required to create an account and invest funds, which ultimately end up in the scammers’ hands. Recovering these funds often requires assistance from an expert.
However, the danger doesn’t end there. The scheme aims to infiltrate victims’ crypto wallets, stealing login credentials and potentially draining the accounts.
Areas of Scammer Interest
The scammers simultaneously launched numerous identical fraudulent sites in October 2023, as verified through WhoIs searches. Plexmoon’s fraudulent activities specifically target individuals in Italy and Australia.
Flawed Web Trader
Plexmoon’s web trader, despite facilitating crypto price speculation and exchange, is rudimentary and barely functional. Users are compelled to deposit real cash before being allowed to place trades. The platform’s layout relies on imported charts from Trading View, providing accurate market tracking but rendering other distribution functions entirely fictitious.
Limited Asset Diversity
Expecting a broad selection of assets akin to mainstream exchanges will disappoint Plexmoon users. The platform offers only about 40 different crypto coins, lacking any tokens. The listed coins include popular ones like BTC, ETH, XRP, ADA, LTC, DOGE, DOT, and CAKE. Additionally, users cannot exchange FIAT to crypto on the site, leading to the promotion of services from other potentially untrustworthy companies.
Email Hacking Scheme
The scammers have implemented a mechanism that prevents clients from registering accounts using secure email providers, indicating a focus on acquiring client data. The platform allegedly provides a single trading account with no sub-accounts or diversification options, and there is no demo trading environment available.
Exorbitant Fees
Plexmoon’s fee structure mirrors that of its sister sites, with Maker and Taker fees starting at 0.075%. Clients can supposedly earn discounts by reaching certain trading volumes, with the highest discount requiring a trading volume of ≥ 20000 BTC ($753,000,000). The fees, even with the discount, remain considerably higher than those charged by regulated exchanges. Additionally, the company imposes deposit and withdrawal fees.
Dubious Referral Program
While the website doesn’t overtly advertise the alleged giveaways from TikTok, it does have a referral campaign. Users are encouraged to attract new victims through social media, resembling a financial pyramid scheme. The returns for participants are meager, offering 40% of each new client’s commission and reducing the participant’s own commission to 0.1%.
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