Bitcoin Loophole is a platform that promises over the top profits on investment as low as $250 USD and $400 USD for referrals. Is Bitcoin Loophole a legit cryptocurrency trading site or is it an outright scam? In this article, we will explore this platform and explain why we believe it’s scamming its investors.
The world of cryptocurrency has faced numerous criticisms in the past few months and years as blockchain technologies continue the march to global adoption. The critics do have a point when criticizing cryptocurrencies as the field is filled with outright scams and fakes. One of the most popular scams launched in 2018 is the Bitcoin Loophole, a trading platform promising investors over $500 profit per hour. While the prospects of making millions of dollars in a couple months sound heavenly, investors stand to lose their funds in the Bitcoin Loophole scam.
Table of Contents
- The Bitcoin Loophole Scam: How does it work?
- The signup process of Bitcoin Loophole
- How Bitcoin Loophole qualifies as a scam
- Do NOT invest into Bitcoin Loophole
The Bitcoin Loophole Scam: How does it work?
The Bitcoin Loophole is a cryptocurrency trading software developed in 2018 by alleged cryptocurrency guru, Steve McKay. The software uses a fully automated trading algorithm to make automatic trades for the users enabling them to make passive income online. The system uses the “Flock principle” to make these profitable trades on behalf of the user. The creator asserts that the platform is able to make “sure predictions” by scanning the market, knowing the movement in future market prices (digital assets and traditional financial assets) and creating a trading decision.
While this is the description of the ‘product’, Bitcoin Loophole offers the users nothing in return. It is a well-marketed sales funnel to steal and con investors from their hard-earned cash.
Bitcoin Loophole has a team of developers who update the source code of the platform.
The signup process of Bitcoin Loophole
Scams and fakes have very attractive ways to sign up users on their platform. Whether it is through free signups, commission related bonuses or referral payments, these scams are set to increase their masses at any cost.
Bitcoin Loophole, in particular, has a free and fast sign up process for the investors. The platform asks for your name, email address, and phone number during the registration process. To make the scam seem a lot more realistic, the company calls you through a representative who convinces the users to open an account with a specific broker and deposit the minimum fee of $250 USD. Once you open up an account with the broker, the representative will be paid a commission fee. This is how the Bitcoin Loophole scammers profit.
Nonetheless, these brokers are unregulated personas and have opened various channels to make the deposit payments including wire transfers, credit cards, and Bitcoin (BTC). The site claims that you will be able to withdraw your deposit if you want without complications. This is however been proven to be false as the unregistered brokers take your money and ghost away.
How Bitcoin Loophole qualifies as a scam
1. Steve McKay, a fictional scammer
The main red flag arises from the unknown founder of the platform who is said to be Steve McKay. Steve is well-known in the cryptocurrency world for developing Bitcoin Core platform, another scam to fraud investors. The scammer uses unwitting celebrities to promote his scams to which one of the crypto personalities, Peter Jones (@dragonjones), threatened to file a lawsuit.
“It’s a complete SCAM & my legal team are on it now. Thanks for letting me know.” – Peter wrote on Twitter after reports of him owning 20% of Bitcoin Core scam came to light.
2. The unrealistic $500 per hour profit promises
The website offers the investors promises to make $500 USD in an hour and close to $13,000 USD every day. While these promises can be fulfilled by a serious investor, the timeline Bitcoin Loophole offers sounds unrealistic and fake.
The system promises to make anyone a millionaire in a couple of months further raising doubt in the project. The possibility to become a millionaire for free with a couple of dollars deposited sounds too good to be true.
3. Bitcoin Loophole deals with unregulated brokers
As explained above, most of such scam sites use unregulated brokers in their plot to fraud investors. Bitcoin Loophole uses these scam brokers to collect the deposit, which will never be reclaimed again. Beware of any trading broker whether on traditional assets or cryptocurrencies who lacks registration from the financial authorities. Most of them take your money and whizz into thin air without actually delivering any product.
4. Bitcoin Loophole contradictory statements
“Bitcoin Loophole does not gain or lose profits based on your trading results and operates as a technology company. Bitcoin Loophole is not a Financial Services firm and does not operate as a financial services firm. We are required to tell potential investors that our software’s past performance does not necessarily predict future results, therefore you should not speculate with capital that you cannot afford to lose.” – Official Bitcoin Loophole website.
The statement above is obtained from the official Bitcoin Loophole website (one of many). Comparing the statement to what is on their sales pages, Bitcoin Loophole contradicts itself in more ways than one. Terming themselves a technological company while selling financial services is a red flag that should not be ignored. Furthermore, the promise of $500 USD per hour is not guaranteed as seen in the last statement above.
Do NOT invest into Bitcoin Loophole
The increasing number of scams in the cryptocurrency field should be a cause for concern for authorities and investors as well. Bitcoin Loophole is a scam and will run your wallets dry selling you a “millionaire’s dream” that will never happen. Avoid trading on the site and depositing any amount lest you lose your funds.
With the increasing cases of fraud in the industry, we call on investors to do their keen research on any trade they make to avoid the endless scams and fakes.
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