Legal Disclosures

Apex Crypto

Apex Crypto LLC Risk Disclosures and Regulation & Licensure Information

 

Last updated: September 29, 2022

 

Apex Crypto LLC (“Apex Crypto”) is regulated on both the federal and state level within the United States. Apex Crypto is required to comply with various financial services, consumer protection, money transmission and cybersecurity laws and regulations. Apex Crypto is registered as a Money Services Business with FinCEN – MSB Registration Number: 31000209565748. As an MSB, Apex Crypto is compliant with the requirements of the Bank Secrecy Act (BSA). Apex Crypto also holds several money transmission licenses (or equivalent), the New York State Department of Financial Services (“NYDFS” or “DFS”) BitLicense, and is applying to obtain additional money transmission licenses (or equivalent) from multiple states within the United States. NMLS ID – 1828849. It is Apex Crypto’s policy to broadly disclose all applicable risks of its products and services to its customers.

 

Apex Crypto is committed to consumer protection and combatting fraud. Cryptocurrencies and digital assets are commonly targeted by hackers and criminals who commit fraud, especially through social media platforms. Apex Crypto and its employees will never contact you through social media platforms. If you believe you are a victim of fraud, please contact us at support@apexcrypto.com or +1 (888) 890-3684.

 

Apex Crypto will never reach out to you via text message, WhatsApp, Facebook, Instagram, Twitter, Telegram, Discord or other social media channels or messaging services other than email. The only websites affiliated with Apex Crypto are: https://apexcrypto.com/, https://apexfintechsolutions.com/, and https://peak6.com/. Customers may only open and access an account through Apex Crypto’s official client partners.

 

Risk Disclosures

You must evaluate your particular financial circumstances to determine whether or not trading cryptocurrencies is appropriate for you. You should not invest funds in cryptocurrencies that you cannot afford to lose. The trading of cryptocurrencies can result in substantial losses up to and including all of your investment. For that reason, you should not use funds that are earmarked for special purposes, such as retirement funds, debt repayment funds, amounts needed for emergency expenses, tuition or household expenses or funds otherwise required by your lifestyle, to trade cryptocurrencies.

 

Unique Features of Cryptocurrencies:

Cryptocurrencies are digital instruments that are intended to function as a store of value or a medium of exchange. Although cryptocurrencies are often exchangeable for various fiat currencies, unlike fiat currencies, cryptocurrencies are not backed by any government or central bank and do not constitute legal tender. Cryptocurrencies have no intrinsic value and there is no investment underlying cryptocurrencies. The price of cryptocurrencies is based on the agreement of the parties to a transaction, which may or may not be based on the market value of the cryptocurrency at the time of the transaction.

 

Insurance:

Accounts holding cryptocurrencies are not protected by SIPC coverage. Cryptocurrencies are also not covered by the FDIC, which covers fiat currency held in member banks. Existing insurance products are inadequate to cover potential losses if an exchange fails and/or digital wallets are hacked.

 

 

Price Volatility:

Cryptocurrencies derive their value from the markets in which they trade, and the markets for cryptocurrencies are global. The price of cryptocurrencies is based on the perceived value of the cryptocurrency and subject to changes in sentiment, which make these products highly volatile and unpredictable. The fluctuations of cryptocurrency prices are much greater than the price fluctuations of fiat currencies, which are also risky to trade. Certain cryptocurrencies have experienced daily price volatility of more than 20%, including sudden drops in price. If participants in a given cryptocurrency market change their view about the value of a given cryptocurrency versus fiat currency, the price of the cryptocurrency can decline precipitously. It may be difficult to liquidate a position in cryptocurrencies at all or, if possible, such liquidation may occur at a significant loss. It is possible that the market for a given cryptocurrency can collapse altogether.

 

Valuation and Liquidity:

Cryptocurrencies can be traded through privately negotiated transactions and through numerous cryptocurrency exchanges and intermediaries around the world, each with its own pricing mechanism and/or order book. Generally accepted auditing methods for cryptocurrencies do not exist and cryptocurrency platforms do not have consistent methods for auditing their holdings and some do not have audits at all. The lack of generally accepted auditing methods and a centralized pricing source pose a variety of valuation challenges. In addition, the dispersed liquidity may pose challenges for market participants trying to exit a position, particularly during periods of stress.

 

Cybersecurity:

The cybersecurity risks of cryptocurrencies and related “wallets” or spot exchanges include hacking vulnerabilities, cybersecurity attacks and a risk that publicly distributed ledgers may not be immutable. A cybersecurity event could result in a substantial, immediate and irreversible loss for market participants that trade cryptocurrencies. Cryptocurrency transactions may be irreversible, and, accordingly, losses due to a cybersecurity event may not be recoverable. Even a minor cybersecurity event in a cryptocurrency is likely to result in downward price pressure on that product and potentially other cryptocurrencies. In addition, the trading of cryptocurrencies may be adversely affected by network connectivity issues and dissemination of inaccurate data. You may incur losses due to software or hardware failures and system failures.

 

Opaque Spot Market:

The cybersecurity risks of cryptocurrencies and related “wallets” or spot exchanges include hacking vulnerabilities, cybersecurity attacks and a risk that publicly distributed ledgers may not be immutable. A cybersecurity event could result in a substantial, immediate and irreversible loss for market participants that trade cryptocurrencies. Cryptocurrency transactions may be irreversible, and, accordingly, losses due to a cybersecurity event may not be recoverable. Even a minor cybersecurity event in a cryptocurrency is likely to result in downward price pressure on that product and potentially other cryptocurrencies. In addition, the trading of cryptocurrencies may be adversely affected by network connectivity issues and dissemination of inaccurate data. You may incur losses due to software or hardware failures and system failures.

 

Cryptocurrency Exchanges, Intermediaries and Custodians:

Cryptocurrency exchanges, as well as other intermediaries, custodians and vendors used to facilitate cryptocurrency transactions, are relatively new and largely unregulated in both the United States and many foreign jurisdictions. There are no standard capital requirements for cryptocurrency platforms nor are there guarantors in the event a cryptocurrency exchange fails. The opaque underlying spot market and lack of regulatory oversight creates a risk that a cryptocurrency exchange may not hold sufficient cryptocurrencies or other funds to satisfy its obligations and that such deficiency may not be easily identified or discovered.

 

In addition to a higher level of operational risk than regulated futures or securities exchanges, cryptocurrency exchanges can experience volatile market movements, flash crashes, fraud, various forms of market manipulation, theft, transaction processing delays and other cybersecurity risks. Trading in cryptocurrencies may be halted by the various trading venues due to unusual trading activity, outages or other problems with a cryptocurrency platform. If Apex Crypto experiences such technical difficulties, those difficulties could prevent you from accessing the cryptocurrency in your Apex Crypto account. Apex Crypto may not have sufficient financial coverage through bonds, insurance or other products to repay your losses.

 

Some cryptocurrency transactions shall be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that the customer initiates the transaction. Before you engage in trading cryptocurrencies, you must become familiar with the platform on which the relevant cryptocurrency trades. Generally, there is limited information about the various cryptocurrency platforms and because these platforms are complex and technically difficult for the average person to understand, you will need to put forth substantial effort to obtain the information necessary to understand the risks you are undertaking. You should understand the functions, operations and uses as well as the history for the platforms on which you invest. As described above, some platforms are subject to a variety of serious attacks, which may result in the loss of your cryptocurrency.

 

Regulatory Landscape:

Different geographic locations have different rules, or oftentimes no rules, that apply to the trading of cryptocurrencies. One or more jurisdictions may, in the future, adopt laws, regulations or directives that affect cryptocurrency networks and their users. Changes in government regulation, such as the suspending or restricting of trading activity in a particular cryptocurrency or currencies, may adversely affect your ability to trade and exchange your cryptocurrencies and may decrease the value of any cryptocurrency in your account.

 

In the United States, cryptocurrency markets are not subject to federal regulatory oversight, but cryptocurrency exchanges are subject to federal anti-money laundering regulation and may be regulated by one or more state regulatory bodies. As compared to regulated markets, such as the United States securities markets, there are no uniform regulations governing trading or other mechanisms to prevent market manipulation or to normalize the cryptocurrency markets when they experience volatility issues. Unlike the laws, rules and regulations governing the United States securities markets, there are generally no laws, rules or regulations that require anyone to continue to support a cryptocurrency market, and there is no assurance that a person who accepts a virtual currency as payment today will continue to do so in the future.

 

Notwithstanding the foregoing, many cryptocurrency derivatives are subject to regulation by the CFTC. In addition, the SEC has cautioned that many initial coin or “token” offerings are likely to fall within the definition of a security and subject to U.S. securities laws. As a result, cryptocurrencies currently face an uncertain regulatory landscape in the United States and many foreign jurisdictions.

 

Technology:

The relatively new and rapidly evolving technology underlying cryptocurrencies introduces unique risks. For example, a unique private key is required to access, use or transfer a cryptocurrency on a blockchain or distributed ledger. The loss, theft or destruction of a private key may result in an irreversible loss. Changes in the technology of a given cryptocurrency platform or changes resulting from cybersecurity attacks include but are not limited to a “fork,” which can have a negative impact on the value of a particular cryptocurrency and can result in the loss or cancellation of a cryptocurrency position or a sudden loss of value. The ability to participate in forks could also have implications for investors. For example, a market participant holding a cryptocurrency position through a cryptocurrency exchange may be adversely impacted if the exchange does not allow its customers to participate in a fork that creates a new product.

 

Transaction Fees:

Many cryptocurrencies allow market participants to offer miners (i.e., parties that process transactions and record them on a blockchain or distributed ledger) the ability to earn a fee. While not mandatory, a fee is generally necessary to ensure that a transaction is promptly recorded on a blockchain or distributed ledger. The amounts of these fees are subject to market forces, and it is possible that the fees could increase substantially during a period of stress. In addition, cryptocurrency exchanges, wallet providers and other custodians may charge relatively high fees as compared to custodians in many other financial markets.

 

Investor Alerts:

A number of governmental and self-regulatory agencies have published information alerting the public of the risks of digital currency:
CFTC:
Risks to consumers posed by virtual currencies

Customer Advisory: Understand the Risks of Virtual Currency Trading
Investor Alert: Watch Out for Fraudulent Digital Asset and “Crypto” Trading Websites

SEC:

Ponzi schemes Using virtual Currencies
Digital Asset and “Crypto” Investment Scams – Investor Alert

Social Media and Investment Fraud – Investor Alert

FINRA:

Getting a Handle on Virtual Currencies

Bitcoin Basics – 9 Things You Should Know About the Digital Currency

FBI:

Cyber Criminals Increasingly Exploit Vulnerabilities in Decentralized Finance Platforms to Obtain Cryptocurrency, Causing Investors to Lose Money

Scammers Defraud Victims of Millions of Dollars in New Trend in Romance Scams
NY Attorney General’s Office:

INVESTOR ALERT: Attorney General James Warns New Yorkers About Cryptocurrency Investment Risks

Federal Trade Commission:
What To Know About Cryptocurrency and Scams

Global Anti-Scam Organization:

The Pig-Butchering Scam

Licenses and Disclosures

State Licenses

State

License Information

State Contact Information

Alabama

Sales of Checks Money Transmitter License: SC 826

Alabama Securities Commission 401 Adams Avenue

Suite 280

Montgomery, AL 36104

Alaska

Money Transmitter License: AKMT-015673

Alaska Department of Commerce, Community, and Economic Development

550 W 7th Ave, Ste 1850

Anchorage, AK 99501

Arkansas

Money Transmitter License: 126334

Arkansas Securities Department

#1 Commerce Way, Suite 402

Little Rock, Arkansas 72202

Connecticut

Money Transmission License:

MT 1828849

Connecticut Department of Banking

260 Constitution Plaza

Hartford, CT 06103

Delaware

Check Seller, Money Transmitter License: 036679

Office of the State Bank Commissioner

1110 Forrest Avenue

Dover, DE 19904

Georgia

Seller of Payment Instruments License: 1828849

Georgia Department of Banking and Finance

2990 Brandywine Road

Suite 200

Atlanta, GA 30341

Florida

Money Transmitters License:

FT230000274

Florida Office of Financial Regulation

101 E Gaines Street

Tallahassee, FL 32399

Hawaii

N/A – Participating in Digital Currency Innovation Lab

Hawaii Technology Development Corporation 521 Ala Moana Blvd

Suite 255

Honolulu, HI 96813

Idaho

Money Transmitters: MTL – 302

Idaho Department of Finance

800 Park Blvd, Suite 200

Boise, ID 83712

208-332-8000

Iowa

Money Services License: 2021-0217

Iowa Division of Banking

200 E Grand Ave, Ste 500

Des Moines, IA 50309

Kansas

Money Transmitter License: MT.0000211

State Bank Commissioner of Kansas

700 SW Jackson St, Ste 300

Topeka, KS 66603

Maine

Money Transmitter License

Department of Professional & Financial Regulation

Bureau of Consumer Credit Protection

76 Northern Avenue

Gardiner, Maine 04345

Michigan

Money Transmitter License: MT0024040

Michigan Department of Insurance and Financial Institutions PO Box 30220 Lansing MI 48909-7720

New Hampshire

Money Transmitter License: 24562-MT

New Hampshire Banking Department

53 Regional Drive

Suite 200

Concord, NH 03301

Nebraska

Money Transmitter License

Nebraska Department of Banking and Finance

PO Box 95006

526 K St #300 Lincoln, NE 68508

New Mexico

Money Transmission License: 1828849

New Mexico Financial Institutions Department Mortgage Unit

2550 Cerillos Road 3rd Floor

PO Box 25101 (87504)

Santa Fe, NM 87505

New York

Virtual Currency Business Activity Company License (BitLicense): 0000022

New York State Department of Financial Services

1 State Street

New York, NY 10004-1511

North Carolina

Money Transmitter License: 184370

North Carolina Commissioner of Banks

316 W Edenton Street Raleigh, NC 27603

Ohio

Money Transmitter License: OHMT 226

Ohio Department of Commerce

77 South High Street

23rd Floor

Columbus, OH 43215

Oregon

Money Transmitter License

Oregon Department of Consumer and Business Services

350 Winter Street NE

P.O. Box 14480

Salem, OR 97309-0405

Puerto Rico

Money Transmitter License: TM-140

Puerto Rico Bureau of Financial Institutions Office of the Commissioner of Financial Institutions

1492 Ponce de León Avenue, Suite 600

Centro Europa Building

San Juan, PR 00907

South Dakota

Money Transmitter License: 1828849.MT

South Dakota Department of Labor and Regulation

123 W. Missouri Ave.

Pierre, SD 57501-0405

Rhode Island

Currency Transmitter License:

202004058CT

Department of Business Regulation

1511 Pontiac Ave

Cranston, RI 02920

Vermont

Money Transmitter License:

100-159

Vermont Department of Financial Regulation

89 Main Street

Montpelier, VT 05620

Vermont

Money Transmitter License:

Other Trade Name #1: 100-160

Vermont Department of Financial Regulation

89 Main Street

Montpelier, VT 05620

Washington

Money Transmitter License:

550-MT-118037

State of Washington – Department of Financial Institutions

Division of Consumer Services 150 Israel Road, SW

Tumwater, WA 98501

West Virginia

Money Transmitter License: WVMT-1828849

West Virginia Division of Financial Institutions

900 Pennsylvania Avenue

Suite 306

Charleston, WV 25302

 

Consumer Disclosures:

 

Alaska

For Alaska Residents Only:

If your issue is unresolved by Apex Crypto LLC, +1 (888) 890-3684 and/or at support@apexcrypto.com, please submit formal complaints with the State of Alaska, Division of Banking & Securities.

Please download the form here: https://www.commerce.alaska.gov/web/portals/3/pub/DBSGeneralComplaintFormupdated.pdf

Submit formal complaint form with supporting documents:

Division of Banking & Securities PO Box 110807 Juneau, AK  99811-0807

If you are an Alaska resident with questions regarding formal complaints, please email the Division of Banking & Securities at dbs.licensing@alaska.gov or call Nine Zero Seven Four Six Five Two Five Two One.

 

Arkansas

If you have a complaint, please contact Apex Crypto LLC at +1 (888) 890-3684 and/or at support@apexcrypto.com. If you still have an unresolved complaint regarding Apex Crypto LLC money transmission activity, you may file the completed complaint form by emailing to ASDInfo@securities.arkansas.gov or by mailing at:

1 COMMERCE WAY, SUITE 402 LITTLE ROCK, ARKANSAS 72202

TELEPHONE: (501) 324-9260 FACSIMILE: (501) 324-9268 http://www.securities.arkansas.gov/!userfiles/ComplaintForm-english%20May%202020(3).pdf

Important Notice from AR Securities Department about Consumer Complaint

http://www.securities.arkansas.gov/!userfiles/Complaint%20Important%20Notice%20May%202020(2).pdf

[… Initial complaints should be made in writing directly to the entity or individual with whom you have experienced the problem. It is a good idea to indicate on your complaint letter that you are sending a copy to the Arkansas Securities Department. If your problem is not resolved timely by the entity or individual, you are encouraged to complete a Complaint Form and send it to the Department….]

 

Florida

NOTICE: By the Florida Office of Financial Regulation

BY GRANTING APEX CRYPTO LLC A LICENSE, THE FLORIDA OFFICE OF FINANCIAL REGULATION IS NOT ENDORSING THE USE OF DIGITAL OR VIRTUAL CURRENCIES.

  • U.S. currency is legal tender backed by the U.S. government.

 

  • Digital and virtual currencies are not issued or backed by the U.S. government, or related in any way to U.S. currency, and have fewer regulatory protections.

 

  • The value of digital and virtual currencies is derived from supply and demand in the global marketplace which can rise or fall independently of any fiat (government) currency.

 

  • Holding digital and virtual currencies carries exchange rate and other types of risk.

 

POTENTIAL USERS OF DIGITAL OR VIRTUAL CURRENCIES, INCLUDING BUT NOT LIMITED TO BITCOIN, SHOULD BE FOREWARNED OF A POSSIBLE FINANCIAL LOSS AT THE TIME THAT SUCH CURRENCIES ARE EXCHANGED FOR FIAT CURRENCY DUE TO AN UNFAVORABLE EXCHANGE RATE. A FAVORABLE EXCHANGE RATE AT THE TIME OF EXCHANGE CAN RESULT IN A TAX LIABILITY. PLEASE CONSULT YOUR TAX ADVISOR REGARDING ANY TAX CONSEQUENCES ASSOCIATED WITH YOUR HOLDING OR USE OF DIGITAL OR VIRTUAL CURRENCIES.

 

If you have a question or complaint, please contact our Customer Support Team at support@apexcrypto.com.

 

Florida residents may contact the Florida Office of Financial Regulation with any unresolved questions or complaints about Apex Crypto LLC at 200 E. Gaines Street, Tallahassee, FL 32399-0376, telephone number: (800) 848-3792 (toll free).

 

Georgia

Licensed by The Georgia Department of Banking and Finance. (Lic. # 1828849/ NMLS# 1828849). The Georgia Department of Banking and Finance – Consumer Resources: File a Complaint. We do not intervene in disputes between consumers and financial service providers, but we do use complaint information in the regulatory process. To file a complaint with the regulators, you may securely do so with the Consumer Financial Protection Bureau, an agency of the federal government, at http://www.consumerfinance.gov/complaint/ (links off-site) or by telephone at (855) 411-2372.

 

Hawaii

Apex Crypto LLC is providing services to you as a participant in a special Hawaii project which ends on June 30, 2024. At the end of the project term, Apex Crypto LLC may be required to close all accounts for Hawaii customers and cease operations. Apex Crypto LLC will notify Hawaii customers in advance if accounts must be closed.

 

Hawaii customers who choose to open accounts with Apex Crypto LLC are advised that the virtual currency or digital currency purchased, whether as an investment, for making payments, or other purposes, may lose value, including the loss of some or all of your original purchase amount.

 

Kansas

If you have a complaint, please contact Apex Crypto LLC at +1 (888) 890-3684 and/or at support@apexcrypto.com. If you still have an unresolved complaint regarding Apex Crypto LLC money transmission activity, you may file it by contacting the Consumer Affairs Department.

  1. Complete consumer assistance PDF form

https://www.osbckansas.org/consumers/complaintform.pdf

  1. Attach copies of documents related to your concerns, such as contracts, monthly statements,

receipts and correspondence with the company. DO NOT SEND ORIGINAL DOCUMENTS AS

THEY WILL NOT BE RETURNED.

  1. Mail or fax the completed consumer assistance form and attachments to:

Kansas Office of the State Bank Commissioner

Attn: Consumer Affairs Department

700 SW Jackson St, Suite 300

Topeka, KS 66603

Telephone: (785) 296-2266

Fax: (785) 296-6037

Email: complaints@osbckansas.org

File a Complaint/Consumer Assistance

https://www.osbckansas.org/consumers/complaints.html

 

Minnesota

Apex Crypto LLC is committed to combating fraud. Cryptocurrencies and money transfer services are commonly targeted by hackers and criminals who commit fraud. If you believe you are a victim of fraud, please contact us at support@apexcrypto.com or +1 (888) 890-3684. For more information on how to protect against fraud, visit the Minnesota Department of Commerce website.

 

New Mexico

If your issue is unresolved by Apex Crypto LLC, you may direct your complaint to the New Mexico Regulations and Licensing Department, Financial Institutions Division. Please visit http://www.rld.state.nm.us/financialinstitutions/overview.aspx for additional information.

 

New York

If you are located in the State of New York and have a complaint, please first contact our Customer Support Team here at support@apexcrypto.com. Alternatively, you can reach us at +1 (888) 890-3684 or 141 W Jackson Blvd, Suite 500, Chicago, IL 60604. Customers residing in New York are able to trade the following cryptocurrencies through Apex Crypto: AAVE, BAT, BCH, BNT, BTC, ETH, LINK, LTC, and SNX. New functionalities offered by Apex Crypto, including but not limited to: cryptocurrency deposits, withdrawals, staking, and peer-to-peer transfers require approval from NYS DFS per Apex Crypto’s regulatory obligations in New York State before being made available to customers residing in New York. If you still have an unresolved complaint, you may also direct your complaint to the attention of: the New York State Department of Financial Services, One State Street, New York, NY 10004-1511; +1 (212) 709-1540. Please visit https://www.dfs.ny.gov for additional information.

 

Texas

If you have a complaint, first contact the consumer assistance division of Apex Crypto LLC at support@apexcrypto.com or +1  (888) 890-3684. If you still have an unresolved complaint regarding the company’s money transmission or currency exchange activity, please direct your complaint to: Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705, 1-877-276-5554 (toll free), www.dob.texas.gov.

 

Washington

If you have a complaint, first contact Apex Crypto LLC at support@apexcrypto.com, and if you still have an unresolved complaint regarding the company’s money transmission activity, please contact the Washington State Department of Financial Institutions, Division of Consumer Services using one of the following methods:

File a complaint online, mail, or fax: https://dfi.wa.gov/consumers/money-services-complaints

By phone: 1-877-RING DFI (1-877-746-4334)

By email: CSEnforceComplaints@dfi.wa.gov