LWEX Review: Avoid Dealing With This Unlicensed Exchange

Anonymity is one of the main ideas behind the creation of cryptocurrencies. When different fraudulent groups found out about this, they created a myriad of ways to exploit decentralized finance as a whole.

Our LWEX review will show you how these groups operate, what they use as a front, and how to avoid investing with an unlicensed crypto exchange.

Taking Anonymity to the Next Level

The company that would be the LWEX exchange was never clearly stated. It is impossible to tell whether there is a holding company or if it is an entity of its own. No nation is ever mentioned, nor is there any mailing address. The whereabouts of the HQ are, thus, completely unknown. Naturally, this extends to legal jurisdictions as well.

If you look into the Terms and Conditions document, the court with legal precedent is the Chamber of Commerce International Court of Arbitration. Of course, this is utter rubbish and is intended just to make an impression on the readers.

Thoroughly Unlicensed Exchange

Over the years, the international cryptocurrency markets have exploded in popularity. The allure of completely digital assets being traded has attracted numerous investors. This has prompted numerous financial regulators around the globe to impose strict regulatory conditions.

In the EU, for instance, the crypto framework is defined by the MiCA Act. It outlines restrictions imposed by the regional regulators, such as a leverage cap of 1:2 for crypto assets. In the US, a similar framework is imposed by the SEC.

It’s a given that any exchange that seeks to provide its services needs to have an appropriate license. After checking with several regulators, including FCA, BaFIN, AMF, and SEC, we learned that the LWEX crypto exchange does not. The claims of an MSB registration found on the site are bogus as well.

Trying To Cover Up The Fraud

While the exchange claims to have been in service since 2018, this could not be further from the truth. The actual lwex.com domain might be from 2006, but this is because the fraudsters purposely chose it for its age.

In reality, the domain first started hosting the exchange in 2024, targeting these particular countries:

• Greece
• United Kingdom
• Belgium
• Poland

The LWEX reviews page on TrustPilot is flooded with fake reviews. A more realistic picture can be found on Reddit, with numerous complaints from defrauded individuals.

Hiding By Imposing a Closed Group

It is impossible for regular website visitors to open an account. Creating a LWEX login requires a promo code, which must be obtained elsewhere. The code is provided either by the company’s boiler room agents, in a scheme similar to Pylwex.com, or by someone who’s already been inducted into the fraudulent circle. In short, the firm operates as a crypto pyramid scheme and encourages victims to seek out new people to bring into the fold.

Much of the work is done online, through social networks and online chat rooms. Or, employees of fraudulent call centers contact the victims directly by phone and promise great returns on investment.

Restricted Access to the Trading Room

Without a valid LWEX account, you can’t gain full access to the trading platform. We say “full” access because it is possible to glimpse the trading floor before you get locked out. Some security, huh?

As you’ve probably guessed, the “advanced” trading software is just another WebTrader. It’s the same as any other similar platform used by other cons like Tipitek, only this time it is colored black and gold.

Dangerous Phone App

The more problematic option is the mobile app. This is not available through regular outlets like Google Play or AppStore but directly from the cheaters’ website.

Of course, your device will complain about installing an app from an unknown source. No problem for the cons since they’ve made sure to post a step-by-step tutorial on how to circumvent device security!

After taking a thorough look, we learned that the app is intended to take control of your Google Pay and Apple Pay programs. This way it can siphon your money off to an unknown account!

Unknown Service Costs

There are several costs you can expect when trading crypto on any regulated exchange. These include Maker and Taker fees, blockchain gas prices, and sometimes commissions. Derivative trading, like perpetual and crypto CFDs, usually includes leverage and swaps as well. Payouts usually incur another fee, and so on.

None of this was ever discussed in this exchange. Since no trading ever takes place, swindlers don’t need to bother inventing any of these costs. They benefit more if the victims think there are no fees, after all.

Don’t Expect a Withdrawal

With a company fully compliant with regulatory conditions, you can simply expect to file a withdrawal request and have your money paid out in full. With cons, however, this is not the case.

The majority of these faux exchanges will only allow clients to withdraw a relatively small sum, and only in order to proliferate the idea of legitimacy. In this case, the payout conditions are never openly stated. There is no info on which channels clients may use, how long the processing takes, or what amount of fees one can expect. This lack of transparency allows the charlatans to invent any excuse to deny a payout.

Help Desk Doesn’t Respond

Customer service is available 24/7, allegedly. Two means of contacting the service are provided: email and online chat.

The chat itself is a simple web form, where the client may post a query and attach a picture. We tried this option since it seemed the quicker of the two. Unfortunately, we never got a reply after waiting for about an hour.

Scammed? Get In Touch With Our Experts!

LWEX scam exchange has somehow managed to avoid the attention of the authorities, even though it has been a thorn in the traders’ side for a couple of years now. The platform exists solely to steal from its hapless victims and nothing else.

If you’re one of the thousands of investors who have fallen prey to this scheme, don’t give up the fight! With the help of our experts, you can start a recovery procedure and see your money returned. Feel free to contact us at any time via the live chat.

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