The domain l7trade.com is down as of writing this post. We are writing this because four days ago someone left the following comment on ScamBitcoin.com regarding L7 Trade:
hey guys! with the current news it seems like the L7trade website (l7.trade, mirror – l7trade.company), disappeared and all the invested funds of thousands of people are gone (approx about 50 million dollars), even though there is still a little hope, as a twitter account appeared yesterday, promising that the site will be restored and the funds are safe (@IncL7trade). whats your opinion on that? could you make your investigation on this situation?
So yeah, Jules, we’ll take a look for you, sure!
L7 Trade claims to be a “leading multi-currency interbourse exchance.” Their motto is “Trading without risk.”
The domain l7.trade was registered through NameCheap, Inc. on February, 2, 2019 for 10 years. The listed registrant contact is an organization known as “L7TRADE Inc,” located in Mahé, Seychelles.
You have to understand. This is not some obscure site. It’s huge. SimilarWeb ranks them as the 16,501 most popular site on the Internet, with an especially high rank for Russia. Much of their traffic was made of people form Brazil, Russia, and Venezuela. In August 2019 they had almost 4 million visitors to their site!
Another domain, which may be associated with l7 trade is l7trade.company. It was also registered through Namecheap, Inc., but later during the year, on August 27, 2019. That’s about 1 month ago. It expires in two years. It also received much internet traffic from the same three countries, but from other countries as well, such as Belarus, United Kingdom, and Kazakhstan. Currently, it’s offline.
They also seem to have a dead Facebook page (facebook.com/pages/category/Software-Company/L7trade-Incorporated-Company-110956286940545/) and a live one as well, in Russian.
The twitter account associated with l7trade (@IncL7trade) opened very recently, 5 days ago, the first post was twitted on September 24, 2019:
Dear Clients! From 23.09.19 we have a serious attack by hackers. Cloudflare protection has been hacked. Three L7.trade platform servers and a Raysafe commercial server were attacked. Accounts in VKontakte, YouTube, Twitter were also deleted. Thank for your trust
They then basically say that they have transferred all funds to a more secure server and that the site will be offline for a couple of days. They keep warning against scammers that pretend to be L7 Trade employees who are contacting L7trade partners with an advance fee scam where they ask for a 7% fee for returning the invested funds.
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On September 25 they created a new email address since they are unable to gain access to their email. L7 Trade’s temporary email is: [email protected].
On September 26, just 3 days ago, they twitted that:
We have information that several of them actually returned the deposit for the bait. This is not our business. In connection with the situation. We close the project indefinitely. Thank you for your trust!
And later that the “platform will be closed until 15 days in connection with a full upgrade, moving to a new location. All your funds have been transferred to a safe vault. We will be glad to see you on our platform!”
Is L7Trade a Scam?
Our gut feeling tells us that it is a scam in it’s final stages. Most cryptocurrency investment scams reach the point where they can no longer continue postponing payments to their investors. Then they have to make an exit move. This could be the case here.
Perhaps they are even really giving back funds in return for 7% to release themselves from obligations to at least some of the investors, while hoping others will just give up. And when they tweet that “At the moment, we have big losses,” it could be that they are also preparing the ground for that inevitable future when they will have to let those investors that will not let go that the money is lost.
Alternatively, they could be really experiencing a hackers attack. We can relate to that since ScamBitcoin.com also went through a DDoS attack not long ago which made us go offline for a few days and was very inconvenient to say the least. However, with CloudFlare it should be possible to block most attacks.
So will L7Trade sort out their situation in 15 days like they promised or will this turn out to be a scam?
By October 11, the dilemma will most likely be resolved. Even before that, if everyone shares their stories with L7 Trade, perhaps we will be able to find additional evidence.