Envestio SCAM – How to make Million of Investments Disappear?


Envestio P2P Lending platform SCAM? Yes, we have skipped both last scam platform reviews Envestio and Kuetzal because of trust issue to these companies. The only hope at the moment is that we will not need to write such kind of article about any of our reviewed P2P Crowdlending websites. I really feel bad for having made the right decision for once. I wish I was wrong. I hate having to write another negative post about peer to peer investing in future and we are waiting for regulations in Estonia and Latvia as soon as possible because as we know, Lithuanian P2P Lending websites already are regulated and licensed by Lithuanian Central Bank.

What are the steps you should do as investor regarding Envestio and Kuetzal Scam?

Step 1

Seeking a response from the team

  • It seems clear by now that no one from Envestio intends to reply to emails or social media messages.
  • So far, one member of the group tried to locate Envestio’s old office without success.
  • Another possible course of action is to physically locate the people themselves in order to ask for a response or notify the police of their location. People living in the region are welcome to use their connections to get more info.
  • Do not do anything threatening or illegal. We are only seeking a response or a destination for authorities/lawyers.

Step 2

Reporting to the authorities

  • Please list and link to the relevant Latvian and Estonian authorities and departments.
  • We should find the exact legal offence that we intend to report.
  • We should decide between bombarding the authorities with reports or sending a combined report by many investors.

Step 3

Legal action

  • Anyone with legal knowledge or experience is welcome to share her or his thoughts on the right approach to others: What exactly are we suing Envestio Scam for, and how.
  • If you are involved in the proceedings against Kuetzal, share insights and progress from that endeavour.

Panic on the peer to peer markets as investors are scrambling to organize and find out what is happening to Envestio and Kuetzal last Scams.

The change in COO, the large amounts of withdrawals, are the biggest Red flags in P2P lending and crowdfunding market and I was 100% right. Kuetzal disaster started the bank run to Envestio and many other platforms which have already turned off premature investment cancellation to avoid the same scenario as Kuetzal and Envestio Scam. I never claimed Envestio was a scam, and neither will I now, but the amount of red flags was stacking up fast and that was the reason why we skipped to review this company before.

Did Envestio Scam start already in mid-January?

As I already told before, we really care our readers and we are very selective which company to review or no. Also as you all know, all of our reviews are affiliate free to make sure that the reviews are honest without affiliate monetization because some bloggers sometimes close their eyes to red flags because they receive an affiliate commission, and I think it’s not the best style how to run blog and gain trust from the readers. But I do care about my readers. That’s why I avoided advertising Kuetzal and Envestio.

I did have some readers that told me they were or had already moved out. I hope they made it out on time because I heard that not long after Envestio stopped processing withdrawals.

I generally avoided advertising my post, and I also did my best to show two sides of the story, as I did not want Envestio to fail. A failure of Envestio could possibly spread to other platforms. There were some other high-risk platforms apart from Envestio such as Wisefund and Monethera [ Also not reviewed yet, waiting for the market to stabilize before adding any new review to our P2P Lending portfolio ]

I am not in Wisefund, fortunately, I am not also in Monethera. I investigated some projects and could not find any flaws but I do consider to investors move out of Monethera as well. I do not like the 3rd party investors from Hong Kong and the fact that we know nothing about their Financial Statements of the company yet.

Also, one of the red flags what I found on Envestio Scam – the size of the projects. Where Envestio started with 40k projects, they now had borrowers looking for funding of 5M. At the same time, these companies were extremely hard to find online and check their legitimacy. The only project that was being identified everywhere was the Hostel renovation. But even that was actually not a hostel but a Dorm for University students.

Envestio Summary to Avoid Bank Run

Envestio did start a counter-campaign to try to polish up their credibility. They hired back the old COO and started reacting on both twitter and Facebook. Fighting with PeerDuck twitter account and anyone who talked against them.

Actually their first statement that was very worrying came on January 15th. Envestio has about 33 M funds invested. They posted 500k-800k of funds actually left Envestio recently. Envestio gets 5% on those funds and the investments got re-invested at the time still quite fast. In the short term, assuming Envestio was using real money and anything that Investors had on their Investor’s account was on a bank account, this should not prove an issue.

This should have brought Envestio extra funding. Afterall Envestio’s income came mainly from projects where they got a few % every time a project got listed. There were more projects and projects with higher funding than ever. So there should not have been a problem in the short run as long as all the money was real and so were the projects.

Better news was that the former COO would be returning to Envestio. Mr Evgeniy Kukin. The current COO would move to Sales. It was a slight improvement and good to see some light at the tunnel.

Envestio SCAM How to make Million of Investments Disappear
Envestio SCAM How to make Million of Investments Disappear

At the time there was still some people defending Envestio – But now it is 100% clear that Evestio is SCAM – no response from them at all.
The thing is, it’s your money. You decide what to do with it. We are not a social institution that is keeping their money in for the greater good. We are capitalists and when the return is no longer worth the Risk then its time to pull our money out.

What’s happening today?

One week later, January 21st Envestio issued a statement it was under attack from Hackers [ I am 100% sure that its another red flag from Evnestio ]. If it was true, then they tried to keep informing investors as much as possible to calm down the panic in the P2P industry. The website did go down a few times. The news did not sound very positive. Envestio was blaming others for its troubles and did not seem to have any plan for fixing the issues.

Also, next time when investors review where to invest – please also view website technical details. Even medium blogs avoid to host their blogs on Shared hostings for security and stability reasons, and now, the company with 33 Million investments hosting their entire website and database on shared hosting worth 5-25$/month? Seriously? And it’s not only about Envestio – if we make deeper investigation we see that there are few more P2P Lending platforms hosting on cheap shared hostings which makes sense – are they legit if they are not investing in their customer data security?

Fast forward to 22nd of January: the website was down in the morning and has not come back up! There has been no statement of Envestio of what is happening.

Some users have speculated that Envestio is moving their provider to a safer host such as Azure. Let’s review some worrying facts about Envestio SCAM

Envestio Scam #1 – Envestio reputation is already broken and not possible to calm down investors

If Envestio was moving their Website, it would be extremely bad PR to take down your website in the midst of a storm and make no announcement whatsoever. You would almost guarantee that every investor would request a buy-back as soon as the Website is back online.

Envestio Scam #2 – Does the old COO disappear from Social media?

The old COO Mr Evgeniy Kukin has removed both his Facebook and Linkedin account. As you can see this was his former profile. However, you will no longer be able to find him.

Envestio Scam #3 – Where are Envestio offices?

Allegedly one person actually went to the Riga offices of Envestio, at least to the address they mentioned and could find no trace of Envestio’s offices.

I can’t help to wonder if the attacks on Envestio really took place or if they were part of a larger plan to give Envestio time to disappear.

Envestio Scam #4 Envestio is removed from ECN

The ECN should give some credibility to a peer to peer platform, but now we know that Kuetzal was a member and all they had to do was pay a membership fee. In other words it’s not very easy to get removed. If you are removed something needs to be seriously wrong.

Not only are they removed but ECN also decided to report them to the National conduct authority.

What should you do if you are an investor who’s money is at risk?

If you still trust them after this you can give it another few days and see if Envestio’s website goes back online. But also consider the worst-case scenario: Envestio was a scam from the very beginning, and the hacking was not done by Hackers but by Envestio itself as a smokescreen. Taking down the Website as part of their plan to make it harder to gather evidence for investors and buy time to getaway.

The more time you lose the harder it will be to get back your funds! If you decided you no longer have faith in Envestio its time to take action.

Envestio Scam Article last updated 23.01.2020 12:33 – Follow this article the get latest updates regarding this situation

I really hope that it’s not the worst-case scenario. There are other scenarios possible, namely that its all real projects and they just could not keep up with the number of buy-outs.

Not only Envestio’s investors have taken a serious blow, but also the peer to peer world as a whole. Steady and profitable platforms will now also need to prove themselves extra hard going forward. They can expect that every single project or added Loan Originator will be closely examined. Not showing complete transparency will no longer be accepted.

Let’s hope that the blow that Envestio is giving will stay limited to Envestio and will bring increased transparency to other platforms. Envestio failed to do so and attempts to recover came much too late.

And maybe this is even good, sorry for your looses but such two lending platform scams like Envestio and Kuetzal will change the market to the best and hope that investors will become smarter and avoid platforms if they will look too good to be true. Also, these two platform scams will force regulators to regulate such kind of investment platforms. It’s also important for investors.

23.01.2020 – Liene Meldere, Employee of Envestio responded public. Not much information but anyway can read here

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