Malta raises red flag on CoinSpace cryptocurrency scam

Malta raises red flag on CoinSpace cryptocurrency scam

In an apparent reaction to a red flag issued by the Malta Financial Services Authority, CoinSpace has reportedly taken down its website and the domain cannot be reached.

CoinSpace runs a typical Ponzi Scheme where its members earn S-Coin ponzi points.

The warning that sparks CoinSpace ‘hide and seek’ mode was very explicit as issued by the Malta Financial Services Authority.

See the full statement below:

The Malta Financial Services Authority (“MFSA”) has become aware that the Malta registered company Coinspace Ltd. with registered office at Mariah Building, Industrial Estate, Triq IlKappar, Mosta, Malta, having an internet presence at is offering a range of services related to crypto-currencies, including exchange and cloud mining services and appears to be offering the opportunity to ‘invest’ in the ownership of crypto-currencies.

The MFSA wishes to alert the public that Coinspace LTD. is not licenced or otherwise authorised by the MFSA to provide any investment or other financial services in or from Malta, which are required to be licenced or authorised under Maltese law. The public should also be aware that any investment opportunities promoted by Coinspace Ltd. are likely to be of a risky nature with a high risk of loss of money.

The MFSA strongly advises the public and consumers of financial services that prior to making any investment or entering into any financial services transaction they should ascertain that the entity with whom the investment or transaction is being made is authorised to provide such services by the MFSA or another financial services regulatory authority as applicable.

Investigation by BehindMLM shows that one Danjel Pawl owns and he indeed registered the company as a limited liability company in Malta. However, the MSFA disclaimer proves that he does not have any requisite license to operate as a financial services provider.

Government across countries have started taking actions on investment scams and Ponzi Schemes. Last week, Turkey also banned the promotion of labeled Kairos Technologies a Ponzi Scheme while issuing an order for the prosecution of anyone who promote the scheme.