Cronex Fraud Awareness Note
Cronex is dedicated to conducting its business with fairness and transparency, abiding by legal regulations and following ethical standards. The company recognizes the responsibility of all crypto market players to act responsibly and contribute to the development of good industry practices to support the growth of the crypto industry, which aligns with their vision and mission.
To minimize the risk of fraud and improve fraud prevention, Cronex established an internal program, the Cronex Internal Fraud Prevention Program, to implement various measures to better protect their clients and raise awareness of different types of fraud. However, the ultimate safety relies on the clients' own awareness and caution. The company encourages their clients to carefully read the questions they provide to understand their measures and asks that any victims or suspected victims of fraud contact them at
Why do we ask for your documentation and why we may ask you to provide proof of your source of funds?
As a licensed Lithuanian virtual currency service provider, we are classified as a financial institution and are subject to oversight by the Lithuanian Financial Intelligence Unit (FIU). We are required to comply with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations, including the Lithuanian Laundering and Terrorist Financing Prevention Act. This means we must take certain steps during the onboarding process for new clients and conduct ongoing transaction monitoring. This is why you are required to provide identification documentation after registering and before making your first virtual currency purchase. If you reach a certain transaction value limit, we may also ask about your source of funds and the reason for entering into a business relationship with us.
We understand that our questions may seem bothersome or intrusive, especially if we need further clarification or evidence, but we operate in a manner that fully complies with regulatory requirements and act ethically to support good industry practice. Remember, you trust us with your money, so it's reassuring to know we're regulatory compliant and believe in ethical business practices. For more information about our due diligence measures, please read our Terms of Service. In addition to legislative requirements, we have also implemented additional security measures to detect fraudulent activity. For more information, please read about our Internal Fraud Prevention Program.
What is Cronex Internal Fraud Prevention Program?
You may have wondered why we ask about who you are speaking with on the phone or why you were wearing headphones during our KYC process. We may have asked if you're buying cryptocurrencies for yourself and not working with any brokers or investment advisors, or asked for the name of the broker. You may have also noticed our scam alert notifications or security warnings in our SMS and emails, or our request to confirm that no one is accessing your computer remotely. All these measures, and others, are in place to protect you and your wealth from highly skilled fraudsters posing as brokers or investment advisors who promise quick and substantial profits.
In February 2020, we established an Internal Fraud Prevention Program under the leadership of our Chief Operating & Integrity Officer to systematically collect data on fraud incidents and implement additional safety measures. While we have seen a decrease in fraud cases, new cases constantly arise, so we continuously monitor new fraud types and seek new solutions to ensure our customers' safety. Your cooperation and support in this effort are greatly appreciated. If you have any questions or suggestions on fraud protection measures or raising awareness, please contact us.
Does Cronex cooperate with brokers or investment advisors or similar?
Cronex is not associated with any brokers or investment advisors, and they do not offer these services. If someone claims to work with or for Cronex, it is likely a scam. Cronex is solely an exchange platform for buying digital currencies. They do not make promises about profits, and they will never call you. If anyone claiming to be from Cronex calls you, it is a scam. If you suspect that you have been a victim of fraud, please see the information on what to do in such a case.
Are you not sure you can trust your advisor or broker?
We agree that trust must be earned, and therefore suggest doing thorough research on the company you are considering doing business with. Look into their background, demand information about their licenses and check the backgrounds of the founders and management team. Do a Google search and ask around on forums to see what others have to say.
When it comes to digital transactions, think of it as if you were handing over money to someone in person. You would want to know who that person is and what they will do with the money. The same applies to digital assets, you need to be in control of your assets and understand how digital transactions and wallets work. Don't let others manage your money unless you understand the process yourself.
It's important to keep in mind that there's no such thing as getting rich quickly. Be wary of promises of overnight wealth and always be careful with your investments. Crypto transactions are final and irreversible, so be cautious and never trust potentially fraudulent investment advisors.
Should all brokers be related to fraud?
Definitely not. We don't intend to suggest that all brokers and investment advisors are untrustworthy, but since there are so many scams out there, it's important to raise awareness. Many licensed brokers are actually pleased to see us asking clients about their license, and they will freely provide information if they have nothing to hide. We don't want to offend anyone by warning about the risks of working with brokers and investment advisors, but we can only go off the information provided by our clients. Ultimately, it's the client's decision who they want to work with, and they are solely responsible for their transactions. Cronex is not responsible for any client transactions. For more information, see the question "Who is responsible for transactions and possible damage?"
What will happen if we recognize you are working with brokers or investment advisors?
Cronex will inquire about the broker or investment advisor. If we determine that they are not trustworthy or have connections to fraudulent activities, we will not provide our services. Our commitment to integrity always takes priority over profits, so we will not participate in any deals that raise suspicion. Even if we do allow the transaction, this should not be taken as a guarantee of the broker's trustworthiness. We do not take any responsibility for your interactions with brokers, investment advisors, or any other third parties. Our sole right is to decline our services if we suspect fraud. If you choose to work with questionable brokers, we are not liable for that decision. You are solely responsible for your actions on our platform.
Who is responsible for transactions and possible damage?
Cronex is not accountable for any actions or transactions made by its clients. Our fraud prevention efforts are simply acts of good faith and do not make us liable for a client's actions. Our platform is self-service, requiring the client to initiate and confirm each transaction. We do not make transactions on behalf of clients or without their explicit approval. We are not responsible for any actions taken by clients, including virtual asset transactions, which are irreversible. Our security measures are intended to assist, but do not create any obligation or shift responsibility to us, even if we don't perform certain safety checks. Implementation of these measures depends on our internal risk assessment for specific types of clients. We will not compensate clients for any losses incurred from working with brokers or investment advisors and cannot be held responsible or liable for their actions. However, we are willing to help in any way we can, including working with the police if necessary.
Which are indicators of suspicious activity or fraud?
Have you received calls or messages from a broker or financial advisor promising quick, high profits? Did they repeatedly contact you and seem very friendly, claiming they want to help you get rich? Have you been approached by someone from Cronex asking for your account information? Or from someone claiming to be from Microsoft support offering advice on which exchange to use and guiding you through the onboarding process? Is the company located on a distant island with limited information about its management and no licensing information? Have they been reaching out from multiple numbers or using messaging apps like Viber or WhatsApp? Have you seen negative reports about them online when you search their name? These are red flags and should not be ignored.
Have they offered to remotely access your computer and guide you on what to do? Have they asked for your bank account, email, and other personal information? Have they warned you not to discuss your involvement with the broker and instructed you to lie about it if asked? These are just a few examples of fraudulent activity. Common characteristics include promises of quick and high profits, persistent contact, and friendly demeanor. They may also use passive aggressive tactics, such as questioning your ambition or wealth. However, their niceness often disappears when you try to withdraw your funds or close your account.
Pay attention to these potential red flags of fraud: The broker may send a small amount of money to test the transaction, then ask for more money to be deposited. They may also claim to remotely handle transactions and only require confirmation through email or SMS. The assets may then be transferred to a new digital wallet with limited activity. If you try to close the account and retrieve your money, the broker may refuse and demand a fee to unlock the account. If you recognize these situations, it is likely you are being scammed. Take steps to protect yourself by not giving them any more money or assets, even if they become aggressive.
If you suspect fraud, it is important to take action. Please consult the section on.
What should you do if you suspect you have been frauded?
If you suspect any fraudulent activity, it's important to gather evidence (such as emails, SMS messages, documentation, and phone call details) and protect it. Secure your accounts with Cronex, bank, email, etc. by changing your credentials if they have been compromised. Do not allow anyone to remotely access your computer.
Report the incident to the relevant law enforcement authorities as soon as possible, as they have the power to investigate and take legal action if necessary. Do not warn the suspected fraudsters about the police or your suspicions, as they may disappear. When reporting the incident, provide a detailed and comprehensive description of what happened. Don't be ashamed that you fell for the scam, as fraudsters are highly skilled professionals who know how to gain trust and deceive others. Reporting the incident to the authorities is the only way to initiate formal procedures and bring the responsible individuals to justice. We work closely with law enforcement agencies and offer our support in their investigations.