Who is CoinFinex?

CoinFinex was an online brokerage platform owned by Tonga Ltd that had its offices in Sofia, Bulgaria, that opened in 2018.; this organization’s website has now been closed down. This broker offered trading in the crypto markets and used the Hello Trading platform, and required an initial investment of at least $500. Three different types of accounts were available to members: beginner, standard and professional, which would attract commission rates of between 4 – 6%. Each account offered traders features such as access to daily market reviews, webinars, and updates on the financial market; however, the broker’s website offered very few details regarding trading conditions, which can be a warning sign of an unscrupulous organization.

Following a spate of complaints and a public warning from a financial regulator, the CoinFinex review below explores whether this broker was a scam organization that misappropriated the funds of its members.

Is CoinFinex a Licensed Broker?

CoinFinex was operating in an unregulated and unlicensed capacity, which means that any funds invested with this trader were at high risk. Brokers who are unregulated have no overseeing professional financial body to ensure that they are acting within the law and responsibly, which is why it is crucial to make sure that any broker you are considering trading with has all the necessary licenses and regulations in place. This also means that, should the broker run into trouble, you will have some recourse in terms of potentially recovering any funds lost to them.

In answer to the question, ‘is CoinFinex regulated?’ The answer is a resounding no – it was operating without any license or overseeing regulatory bodies.

Is CoinFinex a Scam or Legit?

A major sign that a CoinFinex scam has taken place (aside from the fact that the broker’s website has now been closed down and its unlicensed status) was how representatives of this organization persistently contacted members to pressure them to invest higher sums, with greater frequency, with no regards to whether this was in their best interest or not. This tactic is commonly used in Ponzi scams, whereby, despite the trading ‘front,’ the only money actually coming into the company is from investment from current or new members. Typically, once this source of income has dried up, the platform will shut down, and the owners will disappear, taking all the available money in the pot with them.

Finally, the Swiss Financial Market Supervisory Authority (FINMA) issued a public warning against CoinFinex when it was operational, urging people not to place any funds with this trader, as they would be at high risk. 

In conclusion, it is almost certain that a Ponzi style CoinFinex scam was being perpetrated during the time that this broker was open.

Biggest Complaints Against CoinFinex

The most common CoinFinex complaints relate to the investors who feel that their funds were scammed and that this broker acted unscrupulously. There are also a large number of claims concerning the pressure tactics used by the broker’s agents to try to persuade investors to stake more money:

As mentioned in the review from a former investor above, many traders also faced problems when it came to withdrawing their funds, being asked for extortionate amounts of extra investment before their money could be retrieved. The extremely high minimum deposit value ($500) has also generated suspicion as well as a high number of complaints.

Can I Get My Money Back From Coinfinex?

Obtaining a Coinfinex refund is entirely possible. You could choose to pursue the matter yourself, or you may prefer to instruct the services of a reputable chargeback company to act on your behalf. A chargeback team is usually the best option as they have the expertise and experience dealing with similar scams to know exactly how to go about tracking down and recovering your scammed funds. Start the process by having a look online at chargeback companies to choose the one you’d like to work with, taking care to have a look at their success rates and their reviews from former clients.

What is the Chargeback Process?

Once you’ve made contact with a chargeback company, a member of the team will get in touch to fully discuss the case with you, to ascertain if it is likely to be a winnable one. If this is deemed to be so, then it will be taken on, and at this point, you will probably be asked to provide evidence of the scammed funds, including the dates on which the relevant transactions took place.

Following this, the team will assemble everything necessary to pursue the case, following every avenue available to find your funds and trace the perpetrators of the CoinFinex scam. In the highly likely event that a CoinFinex refund is obtained, the money will be deposited directly into your bank account.

If you have lost funds to this broker, then it’s really important to make contact with a professional chargeback company at your earlier convenience; the team will be able to support and advise you through the entire process and will work tirelessly on your behalf to get your CoinFinex money back.