Etoro`s estimated cost for “2.1 Manipulation of account statements…”
2.1 Below is an estimation of how many Etoro users could be affected by suspicious Error that in my case kept 4.334% more profits for Etoro, and at what cost to Etoro (!5.6mln).
Important note, we have hard proof that the same errors have affected other users` profits (proof available privately), as it was an automatic, global algorithm, conveniently working in Etoros advantage!
I will not yet officially instruct what the problem is and how to find, quantify and report it yet. (Only Privately). Etoro needs to take actions first, but should they be oblivious, then in 2021 the latest details, step-by-step instructions and youtube tutorial what and how to claim will be revealed.
In Jan 2014 Etoro had 3 million users and bout 200,000 active users.
So 6.66% of users can be active, it`s a devlish number isn`t it. So is Etoro`s treatment of users.
14 May 2020 Etoro reached 13 milion registered users.
6.66% of 13 milion = 866,666 active users.
Because Etoro advertises as The most popular platform for crypto, and in fact in 2017 was offered more crypto assets than other platforms, it can be assumed that 25% of active users chose Etoro to invest in cryptocurrency, so
at least 216,666 users.
It means at least so many had their crypto positions wrongly calculated, resulting in increased losses for the users. There is evidence that it happened in 2017-2018 (my and other account statements with evidence that Etoro miscalculated actual profits, manipulating figures so that users received less profit than should have) but it could be happening from the 2014 when crypto assets where introduced at Etoro. I fact, some creative accounting in favour of Etoro (rounding assets value up to 10%) is still embedded in the algorithms now at the end of 2020.
Soo, 866,666 active users out of 13 milion
25% crypto users
With average sum of deposits used for crypto trading including all Silver, Gold, Platinum, Diamond members of just 10,000$ (whereas platinum is 50,000$ and diamond is 250,000$) It is estimated that at the total amount of dollars invested in crypto could be at least
216,666 users x 10,000$=2,160,666,000$
During 2017-2020 the BTC went down from 20,000$ to 3.500$ meaning BTC fell over 82.5%.
Lets assume that lossess/profits were only 25%.
It could be assumed that each user had 12.5% losses and 12.5% profits, but if they gained 12.5% Etoro would still miscalculate their profits giving them 4.344% less) so whether users lost or won, Etoro “short handed” them, effectively paid them 4.344% less on 12,5% lossess and 12.5% profits, so on total 25% of their deposit..
E.g. users lost only 25% (although default stop loss is 50%).
25% profit/loss of 2,160,666,000$ = 540,166,500$.
That`s potential profit/loss possible of all users. At one time my account was $180,000 in loss, so above is possible.
If now Etoro miscalculated and wrongly increased the lossess by 4.344% (or reduced the profits by 4.344%)
4.344% x 540,166,500$ = $23,410,816.11
Thats how much Etoro would wrongly amplify users losses or not pay out profits!
Note, this is only based on 1 trade worth 10,000 in a year (or many small trades equal to that amount). In fact, traders turn over the deposited money many times in a year, even once a month, meaning buying and selling at least 10 times a year, meaning their profits/losses would much higher. Given the volatility in crypto markets (sudden 8% jump in price and fact that many users trade on x2 leverage, meaning 16% even in a day, it will be conservatively assumed that user would trade 6 times a year, making/losing 10% each time, so in total 60% profit/loss in a year, compared to 25% average yearly profit/loss above.
60% (accumulated in one year) profit/loss of 2,160,666,000$ total all positions value = $1,296,399,600
4.344% x $1,296,399,600 =56,315,598.624
Over 56 million!
Thats how much all active crypto users doing 6 trades a year average $10,000 each, making/losing 10% each time, could be out of pocket if their positions were wrongly calculated using the same calculations/algorithms that there is evidence that Etoro used for my account.
Let`s be very conservative and say each active user only turns over only $1000 not 10,000$, ten times less, which is unlikely low.
Even then the shortfall of payments that Etoro should have paid out to users would be
Over $5.63 million!
of manipulated, defrauded profits from users trades. And that`s only on crypto trades.
If normal stocks and commodities were miscalculated with the same error than 75% of all active users would be at a total loss, 3 times more than crypto users so
5,631,559.8624 x 3=16,894,679.5872$
almost $17 million not paid to users!
There is no evidence yet that the error affected normal stocks/commodities though.
Let`s assume only crypto assets use wrong calculation algorithm and hidden 4.344% deduction from profits. That`s over $5.63 million that Etoro will have to pay out to users in compensation.
This is a perfect case for a class action suit.
Even if only a handful of platinum and diamond members approach Etoro for compensation, like my self where Etoro admitted I should be compensated 4,700$ for my profits, it can easily amount to hundreds of thousands $!.
Note, we don`t use “alleged” where we believe we have hard proof, which is in most claims and sub-claims.