Dear Etoro, To Avi, Ira Morstyn, Simon Peters, Yoni Assia
I`m making an official complaint no. 2, which I am calling “2. Gross Financial Misconduct – financial actions putting users at loss.”, which will be a base to a claim for my personal and financial damages.
Main headlines are:
A. Etoro PROBLEMS and consequences for me
- Gross Financial Misconduct – financial actions putting users at loss.
- Manipulation (or knowingly permitting) of erroneous trading algorithms calculating profits/losses
- Manipulation (or knowingly permitting) of algorithm calculating units owned
- Rounding up prices of small assets like XRP, obscuring real open and close rate, at 10% loss to user.
- Closing $10,000 of copy trades without discussion or permission
- Closing positions which were 100% stop loss
- Over 30% of my 1200 checked trades was erroneous, either number of units purchased was wrong or profit/loss was wrongly calculated.
- Execution or orders/trades against users interest, against basics fundamental and technical analysis. If my positions were closed 2 months later (in the middle of bull run) value of main assets would be even 80% (BTC) and 240% ($100k of XRP) higher and Etoro knew that this would happen in the cryptocurrency market (as confirmed in newsletter that bull run started). See also Claim 6.
Based on dozens of accounts I`ve received, the same systematic error is found, and we believe at least 200,000 crypto traders could have been affected. Etoro offered me to sign a Waiver, and explained that they know about this problem (and didn`t offer to compensate users) which also means that it`s common problem for all users as the algorithms were embedded in the platform. Etoro later corrected some errors in 2019, again without notification or compensation to users, meaning again they knew about this issue but kept it quiet as it worked/profited in their favour.
B. REQUIRED ACTIONS FROM ETORO
- Etoro to overhaul their financial reports and account statements to provide clear and comprehensive information, and where separate column is not practical, explain formulas used to derive the profit/losses or units purchased, as herein there is proof of major discrepancies found, putting users at loss (or simply rounding figures up/down to 10%). This is also required to comply with regulatory requirements, see Claim 3.
- Etoro to resolve and settle all damages I have incurred summarised in Claim 10 (which I have explained and quantified in more detail separately, see My Damages).
– Demonstrative Evidence – charts, spreadsheets, statistics, calculations
– Documentary Evidence – letters, correspondence, Waiver to sign,
– Testimonial Evidence – personal account statements from other users, having wrongly calculated profits/losses too!
We cannot reveal exact problem yet, to prevent sudden rush of all users for compensation. Etoro need to take responsibility and respond before CySEC first. Nevertheless, Should Etoro remain oblivious to the problem, we plan to announce a date where Problem Will be explained on YouTube with EXACT INSTRUCTIONS what to do, and how to calculate how much you are owed.
Many documents are available on request, including exact calculations.
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, FCA and other applicable regulating bodies.
If you had similar problems, or agree with me, please leave a comment, or contact us. Regards, Platinum Joe.