Is Cosetek Legit or Scam? Here’s The Truth About Cosetek.com
Yes, Cosetek.com is currently paying lots of people USDT on daily basis. However, you can only earn money for a short while on the platform. Like all Pyramid schemes, Cosetek.com would stop processing withdrawals soon and abscond with people’s money.
The website has numerous red flags such as not licensed, no company details, anonymous owners, recently registered website, and unrealistic returns. This article provides a breakdown of the Cosetek scam; how it works, what to do if you’re victim, and how to spot scam crypto trading sites.
What Is Cosetek.com?
Cosetek.com calls itself a USDT trading platform however it relies heavily on new recruits daily. Members have to create a “team”, up to 40 people from whom to make a profit of. Each person in the team can recruit another 40 people to make money for them. This is on top of 2-2.8% daily they promise.
The Truth About Cosetek.com:
Cosetek.com is actually not a crypto trading platform, there’s no wealth created by this system. It only relies on the money new members deposit, then old members are paid with it. The founder of Cosetek keep most of the money, and give people a small portion so that outsiders would get tempted to join when they see the earnings.
This is exactly the structure of a Pyramid Scheme; robbing Peter to pay Paul. The people that benefit most times are the first investors. As soon as the amount of new investor drops, the owners abscond with the money invested.
We’ve seen this scam play out many times.
Is Cosetek Legit or a Scam?
Cosetek.com is a scam pyramid scheme that has been designed to look legit. Lots of people believe it is legit because it is currently accepting withdrawals. However, like all Pyramid schemes, Cosetek will collapse before its one year anniversary, absconding with lots of money.
Cosetek.com Redflags That Stand Out
There are No Regulatory Watch Dogs Watching Over This Platform
Cosetek.com is NOT LICENSED by any financial regulatory body. Cryptocurrency trading platforms are considered money service businesses (MSBs) by the U.S. Treasury and must register with the Financial Crimes Enforcement Network (FinCEN). Many states also have requirements for cryptocurrency trading websites to register.
However, when we checked the registration list, we discovered that Cosetek is not registered. Hence, any deposit you make with them is a huge risk.
Unrealistic Returns
The website claims paying in a 100 euro will make you almost 2000 in one year. On top of that, it promises % from each member your recruit, making this figure even more crazy. The returns is too good to be true. Cosetek.com is simply a ponzi scheme fashioned to look like investment platforms. They offer unsustainable returns which no right thinking investment platform would do.
No Physical Address or Company Information
Cosetek has no physical business address. There is a no address or company details provided on the website. This shows that the website is not trustworthy and cannot be reached if the users see need to do so.
Hidden Fees
The website mentions trading on USDT but no other information on trading strategies being followed. When people attempt to withdraw their earnings the site deduct some fees which isn’t stipulated on the website
Recently Registered Website
Cosetek.com only started operating on the 18th of October 2023. Before then, the website wasn’t existing. This means it could shut down easily as it has no reputation of any sort.
No Customer Support
Aside from the contact us form on the website, there’s no telephone number. There is neither an email address nor phone number provided on the website. This simply means there is no information with which you can contact the platform.
Just like missing addresses, no customer service phone number is a sure indicator of a scam trading platform. Fraudulent trading websites might display messaging-app phone numbers, but these are easy to fake and easy to change. It’s also common for scam sites to only offer live chat (often a chat-bot), email addresses, or “contact us” web forms. But when scams are exposed, the websites disappear, along with any way of communicating with them.
What To Do If You’re a Victim Of Cosetek.com Scam Crypto Trading
Report The Scam to Authorities
The first step you should take is to report the scam to the appropriate authorities. This could include local law enforcement, the FBI, or the Federal Trade Commission (FTC). Reporting the scam helps to alert authorities to the problem and may also help them to identify and prosecute the scammer.
Contact Your Cryptocurrency Wallet Provider
You should contact the cryptocurrency exchange or wallet provider that you used. They may be able to freeze the scammer’s account or take other measures to recover your lost funds.
Warning Signs of a Crypto Trading Scam
Offers High Returns & Giveaway
One of the warning signs of a scam crypto trading site is high returns and crypto giveaway. It is just a tactic to pull people in and make them lower their guards. Everyone loves the idea of making huge rewards, so the scammers are exploiting this angle of human error.
Uses Celebrities To Endorse their Platform
Often times, scam crypto sites uses fake endorsement from celebrities like Elon Musk, Mr. Beast, etc. They do this by using AI deepfake parodies. Victims might think Elon Musk or Mr. Beast is the one in the video, but the video has been manipulated. Never trust giveaways, even if they appear to be endorsed by celebrities. Remember, videos can be manipulated.
Unprofessional Trading Platform
One thing common with scam crypto sites are grammatical errors, spelling mistakes and poorly constructed claims. This of course cannot be seen in professional crypto sites like Binance and the rest.
Fake About Us Claims
The scam sites often claim to have been operating for a long time, sometimes as long as 5 years. However, when you use who.is (a domain checker tool) to check how old the website is, it often shows that the website was registered few months or weeks ago.
No Means of Contacting Customer Support
Another indicator is the lack of a working telephone number, email address or even physical address on the website. In most scenario, you’d see a live chat support option, but this only leaves you to the mercy of the scammers. They can chose to reply you or not.
Conclusion:
Cosetek.com is not a legit crypto trading platform but a ponzi pyramid scheme. Just like FUD Football, you can only earn money in a limited time. Soon, withdrawals would no longer be accepted.
