What you need to know about the GateEx scam
This article discusses the GateEx scam, which reportedly used different domains to run faux crypto exchanges. It explores how accurate the allegations are against GateEx and how you can protect your funds.
Since its inception, the crypto market has been plagued by scammers using varying tactics to deceive investors and lure them into investing big in their projects. These include tactics like pump and dump, rug pulling, and artificial inflation to trick the investors.
What is the GateEx scam?
GateEx is a crypto exchange that claims to offer users a secure platform to buy and sell crypto assets. Some sources report that it provides more than 400 cryptocurrency options, and you can trade them with a trading fee of 2%.
However, it faces serious allegations of running a fraudulent scheme where investors have lost their funds.
Multiple websites operate in the name of GateEx exchange. Some of the domains related to the exchange that you may come across are:
Most of these websites are not accessible right now, and you may likely find other domains for the exchange.
These websites propagate deceitful content that promises high returns for depositing crypto in the exchange. As soon as users create an account and deposit funds, they lose it all as it does not give any withdrawal option.
How does the GateEx scam work?
The scammers behind the project pose as a crypto trading exchange. They entice the investors to deposit their digital assets into the firm to receive high returns through trades. However, all the assets that users deposit in the exchange go directly into the pockets of scammers.
So, anyone who trusts the platform for trading crypto may lose all their assets.
When you create an account on GateEx, and place some crypto in it to start trading, you will first see live trades with incredible profits. But when you try to withdraw assets, the platform will not allow it, and you lose your funds permanently.
Reportedly, it is built so that depositing crypto shares your private keys with the platform. That's why they get access to your funds and can manage them easily.
GateEx scam: Questions on the platform's legitimacy
Here are some of the questions that arise regarding the legitimacy:
Multiple inactive domains
One of the most concerning things about the platform is that it operates with numerous domain names. All of these domains use similar deceitful tactics to lure investors. Plus, many of these domains are inactive, and new ones keep appearing to replace them. It suggests that the scammers shut down the website once they illicitly get funds from investors and continue creating new ones to lure more investors.
Another thing that makes the platform’s credibility dubious is that you cannot withdraw your crypto from it. Once you deposit the amount in a GateEx account, it gives scammers direct access to your funds, and they can transfer it to any other wallet without a trace. Therefore, the platform does not allow you to withdraw funds from your account.
Personal data breach
Users who have been victims of this scam reported that they lost their assets and faced data breaches. The exchange requires your personal information for setting up the account. It includes details like your email, phone number, social security number, financial info, residential address, and others. Scammers can also manoeuvre the information and compromise your privacy.
No verifiable credentials
Yet another thing that makes it dubious is that there is no source from where you can verify the platform’s claims. The number of cryptocurrencies, trading fees, and other features it offers are unclear. That’s why using the platform for crypto trading could be highly risky.
GateEx scam: What to do to recover your funds?
Here’s what you should do if you become a victim of the GateEx exchange scam.
- Firstly, you should immediately disengage yourself from any trading activity on the platform.
- Secondly, you need to collect as much information as possible about GateEx.
- Then look for the relevant authorities in your country who can assist you with financial fraud. You can report to the ActionFraud website if you are a UK citizen.
- If the authorities catch the scammers behind it, you may get a percentage of your funds back. However, there is no guarantee.
- Lastly, take all the precautionary measures, like checking your bank’s insurance policy and protecting all other financial accounts.
GateEx exchange is one ill-reputed trading platform in the crypto market that has scammed many investors.
The platform claims to run a crypto exchange with more than 400 coin options and promises unrealistic investment gains. However, there is no resource to support these claims, and you will mostly find GateEx scam reports on the internet.
The fraudulent actors behind the exchange use a range of domains to attract investors. After they collect the funds from investors, the website disappears, and they start selling the same services through another domain.
Author: Wasay Ali
Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He is a professional SEO content writer who has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe. He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym. He is an INFJ-A personality type dedicated to positively impacting the world. Wasay has a passion for writing as it allows him to express his creativity, share his knowledge, and connect with people worldwide.