Consumer complaint received 2023-04-18
Company: Foris DAX, Inc.
State: DC
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Fraud or scam

Complaint:
Subject : Complaint Against Crypto.com for Financial Investment Fraud To : cfpb Dear Sir/Madam, I am writing to file a complaint against Crypto.com for financial investment fraud. I have substantial evidence to support my claim, and I would like to share the details of this incident with you. 

The issue began in XX/XX/2021 when I registered for a XXXX card account with Crypto.com. Without my permission, the company divided my account into two separate accounts one for Crypto trading and the other for their XXXX card. The XXXX card turned out to be a fake debit card that only allowed deposits but not withdrawals. 

Crypto.com published misleading advertisements, falsely implying that they were a well-known American company. They claimed to have partnerships with XXXX and XXXX, offering free premium memberships for users who applied for their XXXX card. Believing Crypto.com to be a US-based company, I was surprised to find out that their headquarters are located in XXXX XXXX XXXX with the company owner 's name being XXXX. The company has since changed its address and owner, now located in XXXX. 

The application process required excessive personal information, such as social security numbers and home addresses. This is an unreasonable demand for a foreign company since even US banks may not require a social security number when opening a new account. 

My account was illegally locked, preventing me from trading or withdrawing funds from the crypto account. I transferred approximately {$8000.00} from my XXXX bank account to Crypto.com, with the understanding that I couldn't withdraw funds for three months. However, after investing in their cryptocurrency and seeing the value rise to around {$15000.00}, I was denied the ability to sell. I contacted customer service, requesting them to sell on my behalf, but they failed to do so, and I was only able to withdraw less than {$1500.00}, losing a significant portion of my investment. 

Crypto.com never sent the promised XXXX  card, which they advertised as having a {$50.00} production value. Despite claiming to have sent the card, I never received it and was not provided with a tracking number. They asked me to pay an additional {$50.00} for a new card, which I never received either. 

Crypto.com charged exorbitant fees in their virtual currency, which seemed to be entirely fabricated. The accounts were locked, meaning that while deposits were allowed, withdrawals were impossible. The debit card could not be used to transfer funds back to my bank account, essentially trapping my funds within their system. 

My account was compromised and used for fraudulent transactions. Despite having multiple security measures in place, my card information was stolen and used without reimbursement from Crypto.com. Additionally, when using the card to pay for items on XXXX, I received substandard products and was unable to dispute the charges successfully. 

I urge the FTC to investigate Crypto.com and their fraudulent practices. Their actions have caused me significant financial loss, and I believe they are operating a scam under the guise of a legitimate company. Your assistance in addressing this issue is greatly appreciated. 

Sincerely, XXXX XXXX XXXX XXXX XXXX Washington DC XXXX XXXX XXXX

Company response to consumer: Closed with explanation