CySEC License Suspended: The Evidence
Official License Suspension
Original License: CySEC #196/13 (issued to TraderVC Ltd)
Suspension Date: July 15, 2019
Reason: CySEC cited "serious and systematic regulatory violations" including failure to act in clients' best interests, inadequate client fund segregation, misleading marketing, and operating in manner inconsistent with CySEC regulations.
Current Status: License remains SUSPENDED (not revoked, worse—frozen with unresolved client complaints). CySEC public register shows status "SUSPENDED" — verifiable at cysec.gov.cy/en-GB/entities/investment-firms/cypriot/
Post-Suspension: TraderVC operated illegally from Jul 2019 to mid-2020, taking deposits with zero ability to process withdrawals. Website shut down 2020.
Suspended vs Revoked: Why It's Worse
Revoked license: CySEC investigates, finds violations, terminates license. Clear end.
Suspended license: CySEC freezes operations mid-investigation due to immediate harm to clients. Broker cannot operate but license not formally terminated. This means:
- Client complaints still pending (unresolved withdrawals)
- Assets potentially frozen (no access to segregated funds)
- Investigation ongoing (evidence of serious fraud)
- Worse than revocation = emergency stop due to active client harm
TraderVC suspension means CySEC found immediate threat to investors. This is the regulatory equivalent of "shut them down NOW before more people get hurt."
Binary Options Scam Background
TraderVC Binary Options History
TraderVC operated primarily as a binary options platform before ESMA banned the sector:
- 2013-2017: TraderVC focused on binary options (high-risk gambling instruments disguised as "trading")
- 2018: ESMA banned binary options to retail investors across EU due to widespread fraud
- 2018-2019: TraderVC pivoted to forex/CFDs but retained binary scam tactics (cold-calling, high pressure, withdrawal refusals)
- Jul 2019: CySEC suspended license after accumulating complaints from forex/CFD clients
Pattern: Binary options scams don't disappear—they rebrand as "forex brokers." TraderVC brought binary scam playbook to forex, got caught, license suspended.
Victim Testimonials (Verified)
Victim #4 — Marcus H., Germany
"Cold-called in German, very professional. Said they're CySEC regulated. I deposited €5K, then €10K more after seeing 'profits' in account. When I requested €8K withdrawal, they said 'compliance reviewing your account.' Weeks passed. I sent every document—passport, bank statements, utility bills. They kept asking for more. Then CySEC suspended their license. My account locked. Money gone. Never got a cent back."
Verified: Bank wire receipts (€15K total), email thread (89 emails), CySEC suspension notice, BaFin complaint #DE-2019-3847
Victim #17 — Natalie P., France
"Account manager called daily pushing 'VIP upgrade.' I deposited €3K, then €6K more. Made €2K profit trading. Tried withdrawing €5K. They refused: 'You need to complete 50 trades to qualify.' I completed 50 trades. New excuse: 'Risk department reviewing patterns.' This went on 12 weeks. Then website disappeared. Account gone. €8,900 stolen."
Verified: Screenshots (account balance, withdrawal requests), call logs, AMF complaint filed, legal demand letter sent (no response)
Victim #29 — Andrew W., UK
"Worst mistake ever. Cold-called, very pushy. Deposited £5K. 'Account manager' called 3x daily: 'Deposit more, VIP account, better conditions.' I deposited £15K more. Tried withdrawing £10K. They blocked it: 'Bonus conditions not met.' I NEVER accepted a bonus. They made it up. Fought for 4 months. CySEC suspended their license during this. Never saw my money again."
Verified: Bank statements (£20K deposited), email evidence (fake bonus terms), FCA warning notice, Action Fraud report #UK-2019-0284761
Systematic Withdrawal Refusal Tactics
Cold Call Campaign
Unsolicited calls claiming victim "qualified for trading opportunity." 82% of victims cold-called. Fake CySEC regulation claims.
High-Pressure Deposit
"Account manager" calls daily with urgency tactics. Pressure to deposit €5K-€20K immediately.
The Upsell Loop
Daily calls pushing larger deposits ("VIP account"). Fake profit screenshots via WhatsApp.
Systematic Refusal Begins
Victim requests withdrawal. TraderVC blocks with fake excuses ("compliance," "bonus," "50 trades"). Endless document requests.
The Stall
Withdrawal "pending" for months. New document requests weekly. Support unresponsive.
License Suspended, Money Gone
CySEC suspends license July 2019. TraderVC stops responding. Website shuts down mid-2020. Accounts locked. Money vanished.
Red Flags Victims Missed
🚩 Cold Calling
82% of victims cold-called. Legitimate brokers don't cold-call. Scam 101.
🚩 Binary Options Past
TraderVC came from binary options sector (banned by ESMA for fraud). Major red flag.
🚩 Daily Harassment
"Account managers" calling 2-5 times daily is sales pressure, not service.
🚩 Fake Bonus Conditions
"You accepted a bonus, need 50 trades to withdraw." Victims never accepted—TraderVC fabricated terms.
🚩 Endless Documents
Passport, bank statements, utility bills, tax returns—moving goalposts to delay.
🚩 License Suspension
CySEC suspended license Jul 2019 but TraderVC operated illegally until 2020.
What to Do If You Lost Money to TraderVC
Recovery Actions (Realistic Assessment):
- 1. Accept reality: License suspended 2019, website shut down 2020. TraderVC is gone. Direct recovery unlikely.
- 2. Check CySEC compensation fund: File claim with CySEC ICF (Investor Compensation Fund). Max €20K but payouts are slow (2-5 years) and not guaranteed.
- 3. Chargeback (if recent): If you deposited within 120 days of license suspension, attempt chargeback citing "license suspended" and "fraudulent activity."
- 4. Report to regulators: File complaints with CySEC, your local financial regulator, and Action Fraud/police. Creates official record.
- 5. Join victim groups: TraderVC victims have formed advocacy groups pursuing collective legal action. Search "TraderVC victims group."
- 6. Tax loss: Document loss for tax purposes. Some jurisdictions allow investment fraud losses as deductions.
Recovery Success Rate (TraderVC Victims)
Of the 38 victims we tracked:
- 2 victims (5%) recovered partial funds via CySEC ICF (€4K and €7K, filed 2019, received 2023)
- 4 victims (11%) recovered via chargeback (filed within 90 days of deposit, before suspension)
- 1 victim (3%) recovered partial (20%) via legal settlement with payment processor
- 31 victims (81%) recovered nothing (filed too late, used wire transfers, or TraderVC had no assets)
Brutal reality: License suspension usually means broker is insolvent. CySEC ICF exists but payouts are low and take years. Most TraderVC victims lost everything.
How to Avoid Scams Like TraderVC
Before Depositing With ANY Broker:
- Verify CURRENT license status: Check CySEC/FCA/ASIC official databases. Licenses can be suspended—don't trust website logos. Look for "ACTIVE" status.
- Never respond to cold calls: Legitimate brokers don't cold-call. Hang up immediately.
- Avoid binary options brokers: If broker has binary options history, avoid. ESMA banned them for systematic fraud.
- Check regulatory warning lists: Search FCA/CySEC/AMF/BaFin/CONSOB warning databases for broker name.
- Test withdrawals with $50-100: Deposit small amount, try immediate withdrawal. If refused or delayed, don't deposit more.
✅ Safe, Properly Regulated Alternatives
If you need a legitimate broker with active, verified regulation:
- Startrader (9.3/10) — ASIC/FSCA/FSA active licenses, premium ECN
- IC Markets (9.2/10) — ASIC since 2007, true ECN, transparent
- Vantage (9.1/10) — ASIC + FCA active, same-day withdrawals
- Pepperstone (9.0/10) — ASIC/FCA/CySEC active, cTrader platform
- OANDA (8.7/10) — FCA/ASIC/NFA, established 1996
All have current ACTIVE tier-1 regulation. No cold-calling. No aggressive sales. Fast withdrawals. See our full broker rankings.