Dear Etoro, To Avi, Ira Morstyn, Simon Peters, Yoni Assia,
I`m making an official complaint number 1 which I am calling
which will be a base to a claim for personal and financial damages.
Reasons for this case should be well known for the above, but details and evidence can be submitted on request. Main headlines are:
A. Etoro PROBLEMS and consequences for me
- Allowing users to trade with more funds than they earn and not checking if users have financial problems, debt or signs of gambling addiction
- Providing confusing, not transparent, incomplete key information
- ETORO STAFF NOT TRAINED TO PASS HEART STOPPING, BAD INFORMATION TO CUSTOMERS.
- IGNORANCE, AVOIDANCE, not replying to emails
- Countless, substantiated, complaints and bad reviews on line, often comparing Etoro to SCAM websites, including repetitive evidence of wrong accounting or withholding money
- Too relaxed and too late AML checks
- Failure to carry out “social responsibility interactions”.
- Lack of procedures to provide users protection or identify vulnerable customers.
- Poor customer service reputation and online record of systematic failures
Etoro neglected and failed me in all above aspects.
Moreover, Etoro also neglected and failed me as customer in the following:
- Etoro failed to put effective safeguards in place to “prevent consumers suffering gambling harm”. – AML team knew that my deposits were higher than my salary and when I explained that additional money also came from debt and credit cards, they allowed be to deposit money and trade with leverage, despite my account was already approx. 70% in red.
- It took them a year to question my income, not being suspicious or asking for evidence earlier.
- Etoro failed to carry out “social responsibility interactions”. – Over 3 years of trading, 1700 manually closed positions in profit, 9254 all positions, reaching highest Diamond Membership status, investing over $250,000 despite my annual salary is only $50,000, but still being at -$70,000 loss and trying in vain to reduce that loss, yet Etoro have contacted me only handful of times, to respond to my complains mainly, and have no proof of carrying out or even attempting any “social responsibility interactions.”, e.g. asking my net worth or if I can afford to pay mortgage or if I still have my job, or suggesting I should go on a training course or read some books before continuing with investing. At one point I was making over 4 trades a day, yet they haven`t bothered asking if and how it may affect my personal life or mental health.
- Etoro “do not ask the customer to evidence their source of funds (only after a year, when user is already deeply invested) and cannot provide evidence of any social responsibility interactions being carried out” – that is true in my case. Etoro AML team contacted me over a year after I started trading, knowing earlier that the deposits already exceeded what I should have saved from my day job. Only after a year into trading large sums they decided to check if I am laundering money! At that point I already deposited large amounts and my account was in loss. But as above, Etoro wasn`t bothered to “socially interact with me and caution or warn or check if I need support or perhaps my trading has no signs of addiction or gambling”. No, they let me to continue without a single comment on source of my funds or my trading activities/style. My funds are legit but Etoro did not bother to follow regulation and check it in time. Instead they allowed me to increase my trading losses (in their favour, knowing the final outcome will be a forced account termination).
- I have Testimonial Evidence and Documentary Proof of an Asian user who in 7 months was allowed to loose over $300,000 on high leverage trades, without any financial background, depositing thousands off credit cards, and Etoro charged him over $50,000 in spreads/commissions and took rest of his loosing money but never was he contacted with concerns, or questions about his welfare. Etoro currently blocked access to his withdrawals, hoping he will trade the remaining balance.
- Systematic senior management failure (including negligence, misrepresentation etc) is what applies to Etoros conduct of my complaints/case.
- There are other regular, systematic failings evidenced all over internet, and people are contacting me with interesting stories, all which resulted in consumers being harmed and there is recent hard proof that their cryptocurrency money/profits/losses were wrongly calculated which is outright financial manipulation and totally unacceptable.
- Etoros management has already very poor reviews online, see Complaint 9.
B. REQUIRED ACTIONS FROM ETORO
- Etoro to provide and publicly announce their statement in the above position and publish a plan of action to protect and safeguard other users. Too late for me as they have terminated my account.
- Settle my damages as in Complaint 10.
- To replay to proven and alleged failings, can Etoro submit evidence in their defence:
– Can Etoro prove that you have procedures to provide users protection or identifying vulnerable customers? Is this not time that Etoro is fined for not even replying to customers messages, screams for help and ignoring their trading style which is more gambling and betting than careful trading. Is this time Etoro admits they see signs of addiction and puts breakers on their addicted users? E.g. stops sending them inciting newsletters?
– In my case, has Etoro failed to follow rules aimed at preventing money laundering and protecting vulnerable consumers? Was your reaction time suitable to risks of AML (see claim 3)? Did you notify Tax office of my trading (having provided confusing information in my account statements, see claim 2 and 3.) This is what the authorities will be keen to investigate.
Should Etoro not try to resolve or settle the damages I have incurred, I reserve right (and freedom of speech right to advise other users) to report Etoro to the CySEC and FCA and other applicable regulating bodies for exactly the same problems that I had.
- Our pressure on authorities will be to treat Etoro the same as betting industry companies, i.e. implement policies and procedures to protect vulnerable customers. E.g.UK gambling firm 888 had to pay a record £7.8m in August 2017 as a result of serious failings in its handling of vulnerable customers. Even giant like William Hill had to pay around £6m for systemic senior management failure to protect consumers and prevent money laundering.
- One of possible consequences of Etoro damaging me, could be a crowdfunding campaign where incentive for people to donate will be raising funds for “multiple complaints and open letter to CySEC, FCA, to flag Etoro to Authorities”, with submitted evidence from hundreds of users, and order Etoro to pay fines, compensations and to divest money “gained from customers as a result of its failings”.
- Etoro will be expected to hold their staff and managers responsible and re-structure to prove further compliance in the above matters.
See the Evidence and Gallery – work in progress.
D. CALCULATION OF FINANCIAL CONSEQUENCES.
This complaint is part of series of complaints that supports my whole case, see Claim 10 for summary. I reserve the right (and freedom of speech right to advise other users) to also report this the CySEC and other applicable regulating bodies.
If you had similar problems, or agree with me, please leave a comment or contact us.