I2 Investments Scam Goes Bust!
This is an opinion article, written by website owner Daichi Hoang based on information freely available online.
In this piece I discuss the sudden downfall and disappearance of I2 Investments who were backed by what I claimed was a fraudulent regulator in a previous article.
First let me say "I told you so!". I warned you, didn't I? If you haven't read my previous opinion piece, here it is.
In the article I didn't name the fund, but I put up a Google banner of theirs and blocked out the name. I do make it very clear why I did it - to protect my readers from getting involved in the scam. And how right I was.
I2 Investments, which from all accounts by the various reviews online (no doubt they were written by their own staff), this was the holy grail. Wow, it was making so much money month after month, every desperate investor was lining up to get in. 20% returns on average, each month? Sign me up!
On the very same homepage today is a very sad notice that they have lost all their money. Oh dear. Do you even believe it? More like, a group of scammers who have invested the past several years in their lies have now walked away with a lot of money that can't be traced.
What supposedly happened
According to the statement on the homepage and several other sources online where victims have spoken up, 95% of funds were lost during one session trading BitCoin.
This section is straight from their homepage:
"The Bitcoin (BTC Spot) trading strategy implemented caused a large and immediate downward shift of several thousand Points/Pips that our strategy could not recover from due to being designed for Spot FX trading on four digit (much lower volatility) instruments. Therefore not even triggering emergency stop losses used for Spot trading."
If I read this correctly, they are admitting to using a strategy designed for Forex trading on the BitCoin market. What? My personal belief is that these are all lies and excuses to pretend they've lost all this money. Even if it was true, why would any professional fund manager do this?
It appears that the vicitms who have spoken up on various internet forums have a common theme - that the actual trading losses aren't being verified by I2 Investments. I never opened an account with I2 so I can't go as far as describing how the funds were sent or traded, but from what I have read it seems that people were simply depositing money via bank wire straight into a foreign bank account instead of an account opened by the client with a regulated broker.
Is this not enough of a red flag? They give all sorts of reasons as to why you can't send the money into an account that you opened and own with your chosen broker. I guess if 100,000 visit the site and 1% of them believe the lies, that's 1,000 clients to rip off.
What should have happened if they were legitimate
There are perfectly safe ways for people to get involved in a managed fund, using a PAMM system. We have a list of PAMM brokers where you open an account yourself, put funds into your OWN account, let the manager trade for you but they can never touch your money AND you can set custom rules to prevent losses beyond what you are comfortable with.