The Autorité des Marchés Financiers (AMF) has issued a public warning about the forex trading platform LIVAXXEN, following the addition of its website, www.livaxxen.com, to the Forex blacklist on 7 October 2024. The French financial regulator continues to receive a significant number of reports and complaints from retail investors about the platform's fraudulent investment offerings.
According to the complaints, investors have been subjected to aggressive direct marketing from pseudo-sales representatives, followed by persistent reminders from alleged traders to invest more funds. When attempting to withdraw their supposed earnings, LIVAXXEN demands fees amounting to several thousand euros. The average loss reported to the AMF is €25,000.
LIVAXXEN presents itself as a platform allowing investors to explore a diverse range of global markets, including currencies, indices, and commodities, with the possibility of 400:1 leverage. However, the AMF emphasizes that only companies authorized as investment services providers in the European Union are permitted to offer brokerage services such as Forex or index trading.
The AMF confirms that LIVAXXEN is not authorized to offer investment services in Europe. The regulator also highlights the risks associated with leverage, which allows investors to take larger positions than their initial investment. While leverage can amplify potential gains, it can also lead to significant losses if prices move unfavorably, potentially resulting in losses greater than the initial investment. In Europe, leverage has been voluntarily capped to protect retail investors from excessive losses.
The AMF is taking action to stop the unauthorized activities of LIVAXXEN in France and urges retail investors not to engage with the platform or not respond to its investment offers.