Analysis of Dubious Alpha Stocks Market Exchange

Analysis of Dubious Alpha Stocks Market Exchange

The AMLBot team conducted an in-depth investigation of the Alpha Stocks Market exchange project by analyzing the company’s website and its traffic. The team also took into account all mentions of the company across online space, including reviews, as well as the individuals who were indicated on the site as the company’s key personnel. Special attention was paid to the wallets of the company to evaluate their activity and the company’s turnover.

Alpha Stocks Market indicates the following information on its website in the About section:

“Our missions is to act as a catalyst for universal adoption and blockchain innovation. We focus on investing in cryptocurrency…

Our team has expensive in both traditional financing and emerging mining technology…

Our team consists only of qualified people connected with the financial industry for years, who are the passionate about the fledging but very strong cryptocurrency market and mining technology…

Alphastocksmarket using advanced investments techniques, such as financial leverage, guarantees huge profits even at the currently fluctuating rate of cryptocurrencies. When starting cooperation with us, you have a 100% guarantee that you will not lose your funds, but you can only gain.”

Apart from the fact that the text is clearly flawed, contains typos and duplications, which are often telltale signs of a scam, the AMLBot team noticed that the company’s website does not provide any description about the type of services the project provides. There is also no mention of the company’s legal or physical office address in the contact details, although the website does mention that the company is located in the United States, judging by the state and phone code. The mention of the state is too vast a scope to judge where the company could be located.

The website also fails to mention any license numbers or any other legal certifications. Since the cryptocurrency exchange is regulated in the US, a license number must be provided by local laws. This fact alone indicates that the company is operating illegally and does not comply with any rules or regulations. Such anonymity is another important indicator for users to take into account when dealing with the website, since they bear the risk of losing their funds.

A check of the website’s domain indicates that there are several negative comments about the given resource on the network, as well as very low traffic leading to the site. The identity of the website’s owner is hidden in addition to the fact that the regulations and requirements on the protection of personal data are not complied with.

No documents are provided regarding the protection of personal data, as well as information regarding the AML and KYC policy.

The only document provided is the Terms of Services, which in itself contains only several common terms. The document indicates that this exchange is not regulated. Users leaving their personal data on the website are at risk of losing them, as they will likely be used by scammers in other projects. Since the website also lacks any client verification procedures or requirements, this may indicate that the exchange is fraudulent or illegal.

The AMLBot team managed to pass the so-called ‘verification’ procedure on the site, which turned out to be little more than a registration procedure requiring the indication of an email and password. This fact also goes against all the norms and rules of the industry.

The user was then redirected to a personal account that looked quite strange and unprofessionally made. It was also very different from the main page, indirectly proving that the creators of the site did not bother about convenience, uniformity of design.

Website before the registration stage.
Website after the registration stage.

This company states that it offers investment packages, but there is no explanation in what period of time the company means to yield the profits it promises. Such a high percentage of promised yield also suggests that they are only interested in people sending them their money.

Analysis of the company’s cryptocurrency wallets revealed that all of the wallets in question were completely empty at the time of writing. This fact leads to the conclusion that these are just intermediate wallets that act for the purpose of instant withdrawal of funds transferred into them by trusting users. Verification of the given fact can be found in Figures 1 and 2.

Figure 1
Figure 2

The figures indicate that the funds received are almost immediately withdrawn from wallets. It is possible to assume that the owners transfer the funds to other platforms in order to invest them there and earn profit for the assets of their clients.

However, analysis of transactions shows that not a single return was made to the wallets of the company. This is proven by Figure 3. It indicates two rows – on the left are the users who had credited the money, and on the right is the destination where the company later transferred the money. There is not a single reverse transaction to the left.

Figure 3

Considering all of the facts listed above, the AMLBot team can conclude that the service is illegal and fraudulent.

The AMLBot team would like to warn all users that there is no such thing as easy profits in the cryptocurrency market, and if the company does not have a license, this puts not only users’ funds at risk, but can also compromise their wallets.

If anyone has suffered from the effects of a scam project, we welcome users to share the contacts of the suspected company and AMLBot will provide assistance in locating the lost funds.