Bitcoin Loophole a Scam? App Claims You Can Make $13K in 24 Hours

A bitcoin investment scheme calling itself Bitcoin Loophole claims it can help people make over $13,000 within 24 hours via its algorithmic crypto trading app.  You can become a millionaire in just 61 days.  But wait!. This is a scam associated with a different kind of investment, according to Kevin Helms of Bitcoin News.

The record-high unemployment in many countries, led by the coronavirus crisis, has forced many people to look for jobs or ways to make money online. Investment schemes preying on the desperation to make fast cash have multiplied, many of which advertise investments in bitcoin or other cryptocurrencies since they have recently outperformed most asset classes. 

One bitcoin investment scheme that has recently garnered attention worldwide is called Bitcoin Loophole. Its simple website resembles other known bitcoin investment scams that news.Bitcoin.com has already exposed, such as Bitcoin Trader, Bitcoin Superstar, Bitcoin Era, Bitcoin Revolution, and Bitcoin Evolution. 

So What's the catch?

While the idea of making $13,000 a day with little effort is attention-grabbing, there are many red flags about Bitcoin Loophole. News.Bitcoin.com created an account at Bitcoin Loophole for this review. Once we completed signing up, the following message displayed in the middle of the screen: “You’ve successfully completed the registration and connected to your broker.” Another message then asked us to deposit funds of at least $250 into the account to begin trading. All deposits must be done via credit cards: Visa, Mastercard, Discover, Maestro, and American Express. 

There was a world of difference in the information and tone that the website displays before and after signing into the site. Once logged in, there are no longer any promises of easy profits from bitcoin. Instead, there is a disclaimer that reads: 

Bitcoin Loophole does not accept any liability for loss or damage as a result of reliance on the information contained within this website. 

Another red flag is that before logging in, the website expressly states that it is not a scam and its app is “an award-winning software.” Furthermore, the so-called trading app claims that it “has been acknowledged by major institutions such as the US Trading Association as the best trading tool for cryptocurrency investors.” This is, of course, not true as the company is not registered with any regulators and its app is not recognized by any authorities. 

After signing in, the website also displays a notice specifically about U.S. customers. It states: “USA Regulation Notice: Option trading is not regulated within the United States. Bitcoin Loophole is not supervised or regulated by any financial agencies nor US agencies. Any unregulated trading activity by U.S. residents is considered unlawful. Bitcoin Loophole does not accept customers located within the United States or holding an American citizenship.” This disclosure is false as options trading is regulated in the U.S. by the Commodity and Exchange Commission (CFTC). 

Helm warns that this is your classic bait-and-switch scheme and suggests that the user testimonials appearing on the app are all fake.

ScamBroker.com seems to confirm Helms notion, claiming the app is a remake of Bitcoin Revolution, which debuted in January 2018.  It, too, was an alleged scam.

The trading software that Bitcoin Loophole offers, is at best just a random signals generator. Other websites offering this product don’t even have a working product. 

We thoroughly reviewed the software, and this is what we saw from the product. The Bitcoin Loophole shows you the asset to trade, time that the signal is valid, their confidence level, and the ability to place a trade. We could not ascertain from the signals, how long the trade should be for. Is it going to make money in 5 minutes or 5 days? 

The UK Financial Conduct Authority has issued the following statement pertaining to Bitcoin Loophole:

This firm is not authorised by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorisation.

- Aaron Goldstein, Gambling911.com