To save you the hassle of reading any further – coinsext is a scam. So incase you got caught out by the company house hook, and just weren’t 100% sure – Yes its a scam and you will never see ANY return on your deposit. Now before i elaborate and reveal our research i would like to make some disclaimers.

  • We approached this project from a point of view of helping others and weeding out fraudulent scam websites.
  • The litecoin deposit we used in this experiment was donated to us very kindly by a benefactor believing in the same cause as us. Lets put in the research and call out the scammers from the good guys. You can donate to our litecoin address in the screenshot below.
  • This allowed us to approach the experiment from a purely financial p.o.v and removed the emotion of “getting rich quickly”.
  • Yes, we suspected this was a pyramid scheme. Yes, we are aware that 10%, 12% and 15% a day returns are impossible to sustain, and you should be too.
  • Yes nowhere in the FAQ do they actually claim WHEN your “profit” wil be paid out.
  • Numerous contact attempts to this company have failed.

So why did you do it?

Honestly concern for the number of fraudsters jumping on the bitcoin bandwagon these days. In our research, we found all kinds of misleading sites online advertising in the cryptocurrency niche – just waiting to steal your coins. And they are getting smart. We wanted to show that even thou a website shows their company documents on companies house – this doesn’t mean they’re legit.

We also wanted to show some examples of warning signs and things to look out for. Dont just give anyone your coins that are making wild claims!

The first planned ten days with Coinsext.

We came across coinsext trading as “Coins extraction limited” advertising on the coinmedia advertising network. The site is very professionally done, and their claim of being a cloud mining company, thats doubling up as a team of trading experts seems slightly plausible. They have a great array of buzz words being thrown around on their homepage that doesn’t really mean anything or tell you much such as “Top bitcoin mining pool” and “they have released mining pools for competing coins”. Well if they have the ablilty to do that, they must be important.  But hey, they are “making the world a better place” as they state so they must be a trusted company right?

The link to the company certificate and to companies house is a big trust hook, and i can see how this can fool many desperate investors, into taking a chance. DON’T, rather take a punt on a casino bet – even these are better odds.

Once signed up and registered users can deposit either bitcoin or litecoin “into the mining pool” according to 3 earning plans that are based on 3 different astronomical earning tiers.

As you read in the faq – your deposit is now part of a “capital base” that earns daily and therefore you can NEVER get your initial deposit back.

After day 1 the control panel neatly reports the 10% “work rate earnings” from the deposit as the website claims. All the bells and whistles are here, and everything looks great on paper (or rather your screen). We continued this for a planned 10 days – to give Coinsext LTD plenty of time to meet their side of the agreement, and let their miners and “gathered top experts to provide the best financial services” time to get things going. Up to this point the system works flawlessly – you even receive little admin notices when making edits to your account, such as adding your bitcoin deposit address. But once a deposit was initiated from us, this is where the problems started. Even after receiving the administration email of a successfull deposit sent – nothing ever was.

coinsext-payment-process

Logging back into or account we can see that were still “earning” but no deposit request is reflected. So this digital fantasy is all it will ever be.

There has been no response from COINS EXTRACTION LIMITED to our enquiries and ofcourse our litcoin address is stil awaiting payment.

Avoid COINS EXTRACTION LIMITED At All Costs.