If a friend, a YouTube ad, or a Telegram group has pitched you on Loom-X — a “click-a-button” platform promising daily returns from AI-driven crypto arbitrage and zero-knowledge privacy tech — please stop, read this, and share it with anyone considering depositing. Loom-X (app.loom-x.io, loom-x.click, and related sites) has every defining feature of an investment scam, and it carries a second hook most victims never see coming: a wallet drainer.
What Loom-X claims vs. what it actually is
Loom-X markets itself as a Silicon Valley team backed by the Abu Dhabi Investment Authority, offering five “contract bot” tiers that pay 0.3%–1.8% per day for 7 to 360 days on USDT deposits starting at 100 USDT. Half of your principal is locked for half the term.
None of the underlying claims hold up. There is no Silicon Valley team, no Abu Dhabi sovereign-fund investment, no on-chain smart contract running the “arbitrage,” and no audited trading activity. The “daily returns” are simply new investors’ deposits being shuffled back to earlier ones — the textbook structure of a Ponzi scheme. The “Hong Kong regulated” parent entity (“Capital Co. Ltd.”) does not appear on Hong Kong’s SFC licensee list or its authorized virtual-asset trading platform registry.
The hidden second scam: seed-phrase theft
This part matters even if you never deposit a dollar. When users click “Connect wallet” without a wallet extension installed, the site redirects to connect.loom-x.online, which asks for your 12/15/18/21/24-word recovery phrase. Anyone who enters a seed phrase there has handed full control of every asset in that wallet — on every chain — to the operators. Forensic review of the form’s code shows it ships the phrase to a PHP backend under the operator’s control. A legitimate platform will never ask for your seed phrase. Ever.
Who is behind it
The actual operators hide behind Cloudflare, DDoS-Guard, and privacy WHOIS, but the forensic trail consistently points to a Russian-speaking team (Russian code comments, Yandex analytics, Chinese-language PDF metadata, and a Telegram operator handle exposed on a sister site). The most publicly identifiable promoter, Jan Gregory Cerato (a.k.a. Jan Gregory / Strzepka), already carries a California DFPI Desist & Refrain order from August 2024 tied to Loom-X’s predecessor BitHarvest, three earlier DFPI orders against other schemes (CloudFi, CoinMarketBull, Vortic United), and a 2022 Alberta Securities Commission fine of CAD $40,000 plus $125,000 in costs. Industry watchdog BehindMLM has also named additional promoters across the U.S., Canada, Germany, and Thailand.
Loom-X is not a one-off. The same infrastructure cluster hosts the collapsed predecessor BitHarvest, an active sister scheme called Arbcore, and a related “uTradingBot.io” front. When one brand burns out, the operators reuse the playbook under a new name.
Red flags you can use on any platform
- Guaranteed daily returns of any size, especially in the 0.3%–1.8%/day range. No legitimate trading strategy guarantees compounding daily yields.
- Principal lockups combined with referral-tier commissions (V1 through V8 ranks, in Loom-X’s case). That is a recruitment structure, not an investment product.
- Unverifiable credentials — name-drops of sovereign wealth funds, “Silicon Valley” teams, or vague “regulated in [jurisdiction]” claims that don’t appear on the regulator’s public list.
- Any request for your seed phrase or private keys, ever, by anyone, for any reason.
- Anonymous operators behind Cloudflare/DDoS-Guard proxies with privacy-shielded WHOIS.
If you’ve already deposited or connected a wallet
If you entered a seed phrase anywhere connected to Loom-X, assume the wallet is compromised. Move any remaining assets to a brand-new wallet — generated on a clean device — immediately. Do not “rescue” funds by sending more crypto in; that is itself a common follow-on scam. Document everything (transaction hashes, screenshots, Telegram handles, promoter names) and consider reporting to your local financial regulator, the FBI’s IC3 (in the U.S.), or your country’s equivalent.
Disclaimer: This post is for public-awareness and educational purposes only. It is not legal advice, not financial advice, and not investment advice, and it does not establish any attorney-client or advisor-client relationship. Names referenced are drawn from public regulatory records and published third-party reporting; individuals are presumed innocent of any conduct not adjudicated by a court, and inclusion here is not an accusation of criminal wrongdoing beyond what regulators have already alleged on the public record. Always do your own research and consult a licensed attorney, a registered financial advisor, and the relevant regulator in your jurisdiction before making decisions about any investment platform.