Be Aware! Herzen the Ponzi Scam Suspiciously Claims to be Hacked

Recently, Herzen, which has been exposed as a Ponzi scheme, sent an email to its clients claiming that the company was hacked by unidentified hackers on May 6. The company said the hack was "with the intention to bring down the Company," which made many users wonder if the disreputable broker is preparing to run away.

Suspicious "hacking"

According to the emails, the company claims that the hackers attacked the company's system, API system, and traders' MT5 accounts. Due to the hacking, the company and its clients were unable to log in, and the stop-loss was not available. And the hackers also took control of traders' accounts and the executing trades, causing losses to the company and all its clients, the broker said.

Herzen said it would take a week for the technicians to restore the data before the attack and promised to compensate all clients who had suffered losses after restoration.

However, except for an email, the company did not disclose information about the hack on its website or any other public platform or channel. Even new users can use the registration page as usual.

If it is true about the hacking, how can the new data of users be accepted while the system is under maintenance?

Herzen is a Ponzi scheme

Investors revealed to BrokersView last year that Herzen is a Ponzi scheme using multilevel direct selling to pay existing members with new members' money.

Although Herzen claims to be regulated by Labuan Financial Services Authority (Labuan FSA), the company information displayed on its website does not match the information in the regulator’s portal. Therefore, Herzen is not subject to any regulation!

It is worth noting that global authorities have also issued warnings against this company. The Securities Commission of Malaysia (SC) has warned this broker in its Investor Alert List due to engaging in unauthorized securities activities in the capital market. European Credit Investment Bank (ECIB) has also issued the statement, clarifying that it has no relationship with Herzen and does not provide custodian services for its funds.

It is recommended that investors be cautious about investment services provided by Herzen, in caser of financial loss.