Hotnews No 85 Compire and COTP

by | Aug 19, 2024 | Hot News | 0 comments

Crackdown on Compire and COTP Fraud: Criminal Charges Imminent

The fight against two fraudulent operations known as Compire and COTP is heating up, with criminal charges expected to be filed soon against those involved. If you’ve been affected by these scams, we encourage you to report your experience to us.

COTP: The Illusion of an Innovative Platform

COTP emerged in 2021, marketing itself as a cutting-edge platform for easy cryptocurrency trading, promising high returns, low fees, and a secure environment. To lure investors, COTP also introduced an attractive referral program that rewarded users for bringing in new members.

Despite these promises, there were warning signs early on. COTP was not registered with any financial authorities, and its website contained numerous grammatical errors and inconsistencies. Additionally, the platform’s claims of using advanced trading algorithms to generate consistent profits seemed suspiciously too good to be true.

Unmasking the Scam

Nevertheless, many investors were drawn in by the prospect of easy money. By September 2022, COTP began experiencing technical issues, making it impossible for users to withdraw their funds. This fueled suspicions that the platform was not actually generating profits, but rather operating as a Ponzi scheme by using new investments to pay earlier investors.

Regulators Take Action

As concerns grew, financial regulators in the United States and Canada launched investigations into COTP. In September 2022, the California Department of Financial Protection and Innovation (DFPI) issued a cease-and-desist order against COTP, accusing it of operating as an unregistered securities offering and engaging in fraudulent activities.

This move by the DFPI effectively shut down COTP, leaving investors with nothing but empty promises. The scam is estimated to have caused losses exceeding $333 million.

As the crackdown on such frauds continues, we strongly encourage anyone who may have been affected by these schemes to come forward and report  to us.