Liveprosmart is a platform that provides forex, cryptocurrency, and binary options trading. The official website domain of this platform is liveprosmart.com. According to the Whois lookup results, the domain was registered on September 23, 2024. The platform claims to offer fund management services and operates short-term and long-term investment projects.
Company Background
According to its website, the platform is a subsidiary of Liveprosmart Plc. Its parent company claims a history of over a hundred years and positions itself as one of the largest companies globally. The company was established in 2012 with the aim of helping more people enter the investment market to achieve financial freedom.
Based on the information provided by the platform:
- In 2013, the company began funding innovative projects and expanded from individual operations to multiple private equity funds.
- In 2014, the company adjusted its fund management model by launching private closed-end funds to ensure professional handling and privacy.
- In 2015, the company underwent infrastructure reform to strengthen liquidity, clearing engines, and institutional frameworks, improving services for the retail market.
- In recent years, Liveprosmart has expanded its business through social media (like Facebook) to attract international investors.
Despite the platform's claim of its parent's long history and status as one of the world's largest companies, no related information can be found through public channels. Additionally, no official accounts for Liveprosmart were found on major social media platforms such as LinkedIn, Facebook, Instagram, Twitter, and YouTube, which significantly contradicts its website description.
Core Business
The core business of the company mainly includes:
- Providing fund management services to manage traders' funds.
- Operating short-term and long-term investment projects, emphasizing fund safety and high returns.
- Covering multiple countries and membership in the Investors Compensation Fund (ICF) in the United States, while having contractual qualifications in Europe.
Regulatory Information
The platform's website claims that the company is certified by the US government, fully registered and regulated in the US, and authorized by the UK Financial Conduct Authority (FCA).
However, after checking the U.S. Securities and Exchange Commission (SEC) and the UK Financial Conduct Authority (FCA) websites, no regulatory authorization records for Liveprosmart were found.
Investment Plans
Liveprosmart offers five investment plans: Starter Plan, Master Plus Plan, Premium Plan, Ultimate Plan, and Corporate Plan, outlined as follows:
Starter Plan
- Minimum investment amount: $1,000+
- Expected return rate (ROI): 30%-40%
- MoneyBack Guarantee
- 24/7 customer support
- Trading commission: 10%
Master Plus Plan
- Minimum investment amount: $10,000+
- Expected return rate (ROI): 40%-50%
- MoneyBack Guarantee
- 24/7 customer support
- Trading commission: 10%
Premium Plan
- Minimum investment amount: $20,000+
- Expected return rate (ROI): 50%-60%
- MoneyBack Guarantee
- 24/7 customer support
- Trading commission: 10%
Ultimate Plan
- Minimum investment amount: $50,000+
- Expected return rate (ROI): 60%-70%
- MoneyBack Guarantee
- 24/7 customer support
- Trading commission: 10%
Corporate Plan
- Minimum investment amount: $100,000+
- Expected return rate (ROI): 70%-80%
- MoneyBack Guarantee
- 24/7 customer support
- Trading commission: 10%
Investment Model Analysis
The structure of the investment plans provided by the company shows numerous characteristics typical of Ponzi schemes:
Extremely High Expected Return Rate (ROI)
Liveprosmart promises returns between 30%-80%, which is considerably higher than traditional investment markets. For instance, long-term annual returns in the stock market usually range between 8%-12%, while high-risk investment products like hedge funds typically yield no more than 30% annually. Such high returns are often a lure used by Ponzi schemes.
MoneyBack Guarantee
Legitimate financial institutions do not promise high, risk-free returns, nor do they offer "guaranteed returns" on investments. The platform has not provided a transparent insurance or guarantee mechanism, and Ponzi schemes often use such tactics to allay investors' fears; in reality, investors often cannot recover their principal once the financial chain collapses.
Multi-tiered Investment Structure
The platform's investment thresholds range from $1,000 to $100,000, with higher promised returns for higher investments. This structure is designed to attract investors to increase their investments continually and maintain cash flow, a common operational method of Ponzi schemes.
Fixed Commission System
The platform sets a 10% trading commission, which might be used to pay referral commissions, similar to a pyramid scheme financial model. If this commission comes from new investors' funds rather than actual trading profits, it follows a Ponzi scheme's framework.
Lack of Transparent Investment Operations
The platform’s website does not disclose specific investment methods, does not clarify what financial products the funds are directed towards, nor does it offer risk management strategies. Such lack of transparency carries risks, whereas legitimate investment institutions typically provide detailed investment strategies and are subject to regulatory scrutiny.
24/7 Customer Support
Fraudulent platforms usually provide high-level customer support to enhance credibility. However, legitimate financial institutions’ investment services typically do not require such intensive customer support, a feature more common in fraudulent investment platforms.
Ponzi Scheme Operational Model
The core operational approach of a Ponzi scheme is "robbing Peter to pay Paul," meaning:
- Early investors' returns are sourced from later investors' money, not from actual investment profits.
- Attracting new investors sustains the money flow and creates an illusion of high returns.
- When the money chain breaks, the platform collapses, leaving many investors with losses.
Fund Inflows and Outflows
Liveprosmart supports deposits through various methods like bank transfers, PayPal, Neteller, Skrill, MoneyGram, MasterCard, Bitcoin, Western Union, and Perfectmoney.
Withdrawal Methods
- Withdrawal requests can be submitted through the account or via the account manager.
- Relevant documents are required for verification.
- The financial department completes the transfer after review.
Payment Time
- Monthly payments, with funds transferred at the end of each month.
- Minimum withdrawal balance requirement of $70.
Agent Policy and Educational Resources
The company's website does not offer an agent policy nor does it provide trading educational resources, making it difficult for investors to access transparent trading information.
Company Address and Personnel Information
The platform claims its company address is 27141 Hidaway Ave, Santa Clarita, CA 91351, United States. However, given the information above, the authenticity of this address is in doubt. Furthermore, the website does not provide company member information, nor can any related personnel information be found through public channels.
Website Traffic and Template
According to Semrush, liveprosmart.com has an average of less than 100 monthly visits, indicating extremely low user activity on the platform. Moreover, the web design used by Liveprosmart is identical to those of several exposed scam platforms (like TradeLGT, Expresscryptmarket, Metatradesltd), suggesting use of batch-generated templates.
User Reviews and Brand Exposure
No user reviews of Liveprosmart could be found on public networks, and only one media outlet, ScamGuard, has flagged it as a high-risk scam platform, with no further news reports about the company.
Contact Information and Social Media
The platform's website only provides a phone number (+44 7852 961891) and an email ([email protected]) as contact information, but it has not established official accounts on mainstream social media platforms (LinkedIn, Facebook, Instagram, Twitter, YouTube).
Risk Summary
- Opaque regulatory information, lacking SEC recognition, with an FCA warning issued.
- Promises of high returns, far exceeding market averages, matching Ponzi scheme characteristics.
- Lack of transparent mechanism for MoneyBack Guarantee, unable to ensure principal safety.
- Low website traffic, absence of user feedback, extremely low brand exposure.
- Platform uses batch-processed web templates, identical to multiple exposed scam sites.
Investors should exercise caution when choosing platforms like Liveprosmart that promise high returns and verify regulatory credentials to avoid financial losses.
