Elysium Capital closes trading accounts, blames Equiti Group
Elysium Capital has informed investors it has closed its trading accounts.
In an email sent out to investors, Elysium Capital blamed its broker Equity Group.
Elysium Capital named Equity Group as its trading broker mid last year.
Supposedly Elysium Capital uses Equity Group to run its trading bots through, which in turn generates external revenue to fund returns.
Naturally there’s no evidence of Elysium Capital having trading bots or generating external revenue of any kind.
As per a May 17th sent out by “EA Desk”;
Dear Client,
We’ve again detected errors from the 3rd part [sic] brokerage Equiti and have halted trading to protect assets as much as possible.
We’ve just receive a message from Equiti that they are investigating.
We will keep yhou informed and soon you can expect a full report on details.
The following day another email was sent out, detailing the trading account closures.
Please note there was no other option than closing the accounts to prevent further draining of the accounts and preserving the remaining capital.
We understand you are worried but please know we are doing everything in our power to solve this as soon as possible with Equiti.
Apart from the past 2 weeks Equiti Friday technical issue [sic], we noticed that the Equiti accounts were diverging a lot in comparison with our other accounts of other brokerages, though they have the same setup.
So the movement of the equity on our accounts was always more negative for the Equiti accounts.
A bit could be possible due to the high spreads and swaps for Equiti, but a difference this big is not common.
As I understand the issue remains unresolved.
In the meantime Elysium Capital has transitioned to crypto fraud. The company still pretends to generate external revenue via crypto trading.
Elysium Capital purportedly trades cryptocurrency through the broker MultiBank.
Elysium Capital owner Fred Stege is also now selling crypto trading signals, complete with a referred compensation plan (review pending).
Update 22nd July 2021 – BehindMLM revisited Elysium Network for an updated review in July 2021.
Update 14th August 2021 – Equiti Group has disputed Fred Stege blaming them for Elysium Network affiliate losses.
Trading was done, likely via a bot. Stege always talked about propdesks that would manage the trades manually, or (re)program the bots.
They didn’t generate external revenue though. If ever there was a trade in danger of securing a profit, it was closed immediately.
Whatever small change a winning trade may have brought, it’s a pittance compared to the losses or what selling to your downline would have earned you. Losing trades were kept in the market until they got a margin call.
Whether Elysium rigged the trades in favour of their own account or what the idea behind the strategy was is anyone’s guess.
Was it though? No audited financial reports = no actual trading.
They never had anything audited, I don’t think any trading was done pre-August 2020.
But clients had segregated accounts at Equiti and gave Elysium limited power of attorney as asset manager.
Elysium then traded (without a license and embarrassingly poorly) on those accounts on behalf of the customers.
But unregulated trading was done by Elysium. Not that it did the clients any good, though. Though you can earn on 7 levels on the people you recruit!
I’m getting a 502 bad gateway error for both elysiumcapital.io and elysiumnetwork.io; is this the start of an exit scam, or is it just my connection (though mobile and home internet give the same error message)?
Can confirm same errors on my end. Bad gateway could just be a temporary server misconfiguration.
BehindMLM sometimes throws up the same error if a DDOS attack makes an impact before automated protection catches up.
If it stays like that for ~48 hours though that’s probably long enough to confirm an exit-scam.
FWIW, getting the same 502 message in the U.S. for both sites.
That’s not how server maintenance works…
Seems similar to Mirror Trading’s maintenance over December.
Now (19:34 CET) I’m getting a 500 Server Error on elysiumcapital.io and a 404 Not Found on elysiumnetwork.io
Still not how server maintenance works…
404 is “we deleted the website”.
500 is a server misconfiguration.
If it’s still borked by tomorrow morning I’m calling Elysium’s exit-scam.
Now it’s 503 Service temporarily unavailable on both addresses…
[Less than an hour later, in the US] I’m getting 503 on capital and DNS error on network.
Elysiumcapital.io = domain DNS deleted
Elysiumnetwork.io = root directory (server deleted)
Got some errands to run, if it’s not fixed by the time I get back then it’s news time.
I’d guess a root directory means the server is fine, but that whatever was on it got deleted?
Unavailable can mean anything, in the end it doesn’t really matter – contents gone.
Pretty much,and neither are accidental
Spoke to one of their promoters and it is indeed dramatic. The millions are gone and the excuse being used is that Fred was to naive working and believing some partner companies he worked with.
The whole set-up and system collapsed. Investor losses will be in the tens of millions.
Stupid money leaves stupid hands easily.
Would you know which partner companies that would be? The never disclosed firms trading the Pinnacle Fund and the Aurum Digital portfolio?
Their own Alpha Linea trading desk at their office?
The only partner companies they had were Equiti and MultiBank as their brokers; and RTCLab sp. Z o. o., which provided a whitelabel voip software Elysium resold as “Xoom”.
Fred’s personal crypto wallet 1, Fred’s personal crypto wallet 2 etc. etc.
Stege being scammed by partner companies…where does one find promoters that gullible?
On his last call, the visionary founder mentioned that they were cheated by the broker.
Which has been going on for months, weird how 17 mastertraders with decades of experience don’t notice foul play sooner.
They allegedly tried their bot settings at other exchanges where they are in the green.
Sure you are Stege, sure you are. “Our” trading would then mean Elysium do trade, instead of merely linking a retail client to an external trading desk?
These desks now tried their bots at different exchanges and they’re in the green. “We have proof of that”.
Unfortunately he can’t send that out yet, because his legal counsel told him not to disclose too much; that would weaken his position towards Equiti.
You could charge people for the privilege of being an early investor, and get their loyalty that way.
Stege flogged some common stock before Elysium Network and Capital opened to the public in April and August 2020 respectively.
For the low low price of €50k, one could buy 50,000 shares of the company’s common stock. Rather worthless in the unlikely event Elysium Capital Limited never becomes a listed company.
wetransfer.com/downloads/5bdd2e191787e8d4e20a406ccedcb6e420210612111007/d4a247cdaba5fc7db98095fbbbb31c5320210612111134/67105a
It would explain why some promoters keep pitching Elysium and recruit as many people as they can to maybe recoup some losses. Must be tough admitting to yourself you’ve willingly handed over €50k to a lying fraud.
Not for the first time: wow.
The whole document looks copy-pasted with various sample clauses from lawinsider.com; why would a Hong Kong company issue shares in EUR?
Or why would it mention the US Bank Secrecy Act of 1970? Seems odd for a company that doesn’t accept clients from the US.
Is it Pascal Stege, or Pascal Fred Stege (p19)?
Yeah, no kidding.