Equiti Group threatens Elysium Network with legal action
Equiti Group has sent out an email to Elysium Network affiliates, informing them they are “considering all legal and regulatory options against Elysium available under law”.
The email is part of Equiti Groups’ attempt to refuse claims from Elysium Network and founder Fred Stege (right), blaming them for investor losses.
Back in May Elysium Network claimed it had “detected errors” in its Equiti Group accounts.
These errors purportedly led to Equity Network collapsing, and Fred Stege washing his hands of any responsibility.
Stege was quick to wash his hands of any responsibility. Elysium Network was promptly rebooted as a crypto advice subscription scheme.
Equiti Group claims this version of events is “misleading” and “defamatory”.
Equiti is an execution-only broker, and serves as the venue of execution for your trades.
Equiti does not provide advisory or management services to its clients.
Elysium used to act, in its capacity as your asset manager, for your account with Equiti, and Elysium alone was authorised to execute trades on your behalf.
As such, the performance of your managed account, including the losses sustained, were caused solely by the trading strategy employed by Elysium.
Majority of the trades Elysium made were loss making due to Elysium’s poor trading.
Elysium kept such loss-making trades open for prolonged periods of time, sustaining heavy losses, and closed winning trades, which were in the minority.
Elysium Network affiliates claim to have lost on average 70% of funds invested through Elysium Network.
Equiti Group claims Stege hid massive losses by only reporting winning trades to Elysium Network affiliates.
The result of Elysium’s loss-making strategy was that the overall equity in your account steadily diminished over time.
Equiti Group states that when it decided to close some Elysium Network accounts in mid May, the
majority of the positions at the time of their closing were loss-making, resulting in your losses being crystalised.
Rather than acknowledge it was unable to generate external revenue via profitable trading, Equiti Group claims Stege blamed it in an “attempt to distract clients”.
For your information, Equiti has legally notified Elysium against continuing to spread misinformation and to defame Equiti.
Equiti is considering all legal and regulatory options against Elysium available under law, at all appropriate forums, should Elysium continue its actions.
We hope the above clarification addresses your concerns. Equiti is available if you have any questions whatsoever.
Equiti are taking this matter very seriously and will deal with your queries on priority. Please do not hesitate to contact us.
Stege has moved on forex trading and now markets himself as a crypto expert.
Elysium Capital affiliates are expected to pay €99 EUR a month for Stege’s thoughts on bitcoin’s day-to-day price movements after the fact.