Amfeix Ponzi Scheme

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Amfeix

Amfeix was a platform where investors would invest their funds, promising a large rate around 8%/mo. The owners behind the scheme were not fully known. The fun ran successfully from around June 2019 up until withdrawals started failing in May 2020. Platform channels were shut down approximately June 1st, 2020 with over 500 pending withdrawals owed. There are no reports that any funds have been recovered.

This is a global/international case not involving a specific country.

About Amfeix

"AMFEIX positions itself as a cryptocurrency investment fund, which can be a lucrative business model when done correctly." Amfeix "claims to be a bank where you can deposit Bitcoin and earn interest of 4% a month, which works out at an unlikely annual rate of 60%." According to Amfeix, it is set to “outperform all other traditional banks and be a safe haven for wealth”. "[T]he company claims to offer a return of over 100% per year. On a monthly basis, that equates to over 8%"

"AMFEIX is the first blockchain fund that is available to all investors around the world. It offers a unique opportunity to investors who are looking to diversify their portfolios and tap into the cryptocurrency space. The AMFEIX investment fund is run by professional, skilled, and experienced traders who follow strict risk management procedures while ensuring consistent daily returns to its investors. AMFEIX Fund already has a great track record of consistently beating the returns of major US indices and other assets."

"AMFEIX is an investment fund that sees daily changes in both directions. This means that your BTC will grow and other days may see a slight decline. This is essential in understanding before entering the fund as losses do happen even though AMFEIX has been profitable in the long haul and continues to strive in that path."

"The company is registered in Johannesburg, South Africa and is currently pursuing registration in other countries around the world. The fund is decentralized, transparent and operates based on smart contracts that are built on the Ethereum blockchain. Investors have access to their wallets, can view their portfolio performance, and can withdraw their funds within 24 hours. The fund has zero management fees and profits only when its investors’ profit. The fees are based on a 2-to-8 ratio where the fund retains 20% from the generated profits and investors receive 80%. All profits and losses are calculated and reported daily and reflected in every investor’s portfolio."

"According to documents released, AMFEIX, a private outfit, was registered in the UK on October 7, 2019, with the papers showing it was registered as AMFEIX Enterprise Trading LTD. The company said to be located in London is currently under review by the authorities after it was alleged to have been given a strike off. With this in mind, the company's existence on a legal basis has been revoked and was subsequently asked to dissolve their investments. Regarding the official statement by the UK authority, the arm of the authority stated that they are not allowed to take any actions since it seems the company isn't under them."

"AMFEIX allows for a simple and easy sign-up process through its website." "AMFEIX does not need a user to be KYC verified. Instead, a first-time user needs to set up a Wallet Name, Password and Seed Phrases. Once a device is linked to a particular wallet and its seed phrases, subsequent logins will need only a wallet name and password."

"An online review of an investment outfit called Amfeix said that one positive sign was that it advertised on Google." “This is actually huge for me as I have used Google Ads before and Google doesn’t mess around with non-legit companies,” it read.

"AMFEIX manages the funds of its investors in two major methods: through long-term holdings and a trading desk. The total funds are split between 45.5% being held in cold storage wallets and 54.5% being actively traded. The white paper that describes the fund’s processes is available online at their website, AMFEIX.com, which also provides more details regarding fund operations. AMFEIX is the first fund to allow investors from all across the world to access the cryptocurrency space and enjoy the enormous returns the space has seen in recent years."

"The platform implements a variety of security features to ensure that funds are kept safe. One such feature includes decentralized wallets in which funds are deposited. The wallets are each secured by 12 random seed keys that link the account though the device. The account is protected by a password of 8 characters. Also, all of the investors’ passwords are encrypted and are kept on users’ personal computer."

"AMFEIX tries to make things simple. Invest BTC and forget. AMFEIX team of technical traders and analysts will take over and execute open market operations daily and aim to make profits from the volatility." "Like thousands of others, their 3+ year track record with 0 people saying they had problems withdrawing their Bitcoin, made it sound like a safe deal. Their returns actually weren't insanely large, a good trader can actually make much more and assumed they had some running the fund."

"The said company, AMFEIX, promised its customer base massive returns at the end of each month and, as a result of that, accumulated nothing less than $60 million in Bitcoin." "Confirmed reports note that the company has been on the receiving end of nothing less than 7,000 Bitcoin since last year. Presently, the available balance of the wallet is around 60 Bitcoin, which is worth about $563,000."

"[I]t was called AXB Financial when I've joined the fund back in January and CEO changed the name to AMFEIX and rebranded everything regarding the name change," "[A]fter joining telegram the admins told me i should only ask questions on the website, via chat. it seems to me like they don't want to get too many questions. [T]he company is registered in UAE and i cant find the owners name. [W]hen i asked on telegram about who are the traders an admin told me "if everything works fine then why do you need our name? just enjoy the profits" which seems strange."

"The reality is that Google Ads is awash with scammers, so much so that I would actively discourage anyone seeking savings advice from using the search engine." "In the case of AMFEIX, the company claims to offer a return of over 100% per year. On a monthly basis, that equates to over 8%, which is impossible to guarantee. Even when engaging in DeFi, the best rates one can expect is 18% per year."

"A source claims that most of AMFEIX’s alleged customers believe the “real” CEO is a 19-year-old British individual named “Ali Bilaal.” However, Ali’s name doesn’t appear in any legal records for the UK company."

"I dont believe a single word of Amfeix. All Markets are falling like a stone, but Amfeix makes profit as usual. Sure its possible to make profits in falling markets. But I dont believe these "profits" are from trading. I am sure they are from thin air that means only from fresh investors. IT IS A PONZI!!! They dont verify any trade. Where and how do they trade. What do they trade? Who trades? They dont show any proofs. They hide their identities. This is a 100% sure sign of fraud."

"The users claimed that the height of everything came around the end of May 2020, when they tried to withdraw severally only to see their respective requests still on pending mode till now." "As June was gradually coming to an end, the users started seeing the light and have started sending emails to the media. According to the clients, the returns that they were promised at the end of the month didn't arrive, and all efforts to reach the company proved abortive."

"Far from being safe, investors are now finding that they cannot take out their savings. One customer who deposited 0.75 Bitcoin, worth about £5,500, told me: “Amfeix is advertised heavily online and I was looking for an investment opportunity."

“Now I am deeply worried because no withdrawals are possible.” "Cointelegraph confirmed that a BTC wallet address owned by AMFEIX has received a total of 7,228 BTC since April 2019 (more than $67 million). As of press time, the wallet’s final balance is 60.11 BTC (approximately $563,000)."

"At the end of June, Cointelegraph began receiving emails from AMFEIX users who had invested their funds into the project." "Last week Cointelegraph published a story about investors having difficulty getting their money back from a crypto fund called AMFEIX, which promised high-yield profits for investors who sent them Bitcoin (BTC). Our story described more than 500 pending withdrawals from users trying to get their money back, and AMFEIX’s unsatisfactory communication with those users."

"The company addressed its users via its official Telegram channel after the story was published, suggesting that the withdrawal delays were due to technical difficulties that had been an issue since May. It also stated that “members who show loyalty to AMFEIX will have priority” in the withdrawal process. The unspoken suggestion is that those who share unflattering coverage of the company won’t see their money returned in a timely fashion."

"AMFEIX ponzy is DONE. All telegram group admins are gone, just a note from the CEO stating that that due to some "apparent" congestion from the bitcoin halving, all withdrawals have to be manually processed and that takes time while the "AMFEIX system" gets redeveloped. LOL : the AMFEIX wallet shows no outgoing transactions for a few days already."

"Jack Hudson, 22, was named on its website as the director of what, so far as I can tell, is its only incorporated business, Amfeix Enterprise Tradings Ltd, registered in the UK."

"That was until he resigned in May, leaving the company with no directors, and it is now listed as due to be struck off the Companies House register."

"Ï am in the USA. Same thing happened with me on a platform called amfeix"

"Amfeix is a fake company! They pretended a security issue in May 2020 after which Jack Hudson left the company and assigned Jacob Scanlan as the new CEO. He promised to restore services but after 1.5 years, there is still no advancement. In 2022, The AmfeixPortal.com has been shut down completely and the company can no longer be contacted by Amfeix.uk. If you invested money, file a claim at your local police. Every case counts for international crime investigation."

"Amfeix would not tell me who now runs the operation, despite repeated requests in which I finally emailed." "I don't understand why you won't answer my simple questions, no legitimate business would object to being asked for its company registration and directors' details. I also find it rather unprofessional that your replies have no name or postal address. This is not very transparent."

"The [FCA] said, presently, all things point to the fact that the investment is not regulated under the FCA, and wallets having digital assets like Bitcoin do not need authorization from us". The only previous operative of the company, Jack Hudson, has distanced himself from the company after the allegations. He noted that he used to be one of their representatives but has since left the company a long time ago. Efforts to reach out to the company's team for a statement have further proved abortive. They have always warned reporters to stop putting their staff in harm's way."

"The Amfeix Twitter account has only vaguely addressed the question of blocked customer withdrawals." “Several key changes are being made behind the scenes for a long-lasting solution.”

"Well, we now know this is a SCAM. Stay away. My 12 BTC are gone and there is no way to recover them. Amfeix steals people's money."

It’s all looking rather bleak for “The world’s largest and most trusted Bitcoin bank”.

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - Amfeix Ponzi Scheme

Date	Event	Description
June 1st, 2020 9:37:14 AM MDT	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost has been estimated at $67,000,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

General Prevention Policies

Ponzi schemes can be prevented through regular transparent reviews to validate that all funds are fully backed. Having a known team with a proper multi-signature wallet can prevent an individual stealing the funds.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.