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Recover Money Lost to Cosetek

Cosetek (also known as Coscoin or COS) collapsed in November 2023 after operating as an unlicensed cryptocurrency Ponzi scheme, leaving thousands of UK investors unable to withdraw their funds. If you transferred money from a UK bank account, a refund claim may be possible — even if your bank has already refused.

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Why Choose Compensation Adviser

Recovering money lost to a cryptocurrency fraud scheme like Cosetek requires specialist knowledge of APP fraud reimbursement rules, the Financial Ombudsman Service complaints process, and the obligations banks have to protect their customers from scams. Compensation Adviser provides clear, professional guidance through every stage of your claim, ensuring you understand your options and have the strongest possible case.

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We operate on a strict no-win, no-fee basis. You’ll only pay our 15%+VAT success fee if your claim is successful. Cancellation fees may apply (see full fee details below).

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What Was Cosetek?

Cosetek — also marketed under the names Coscoin and COS — presented itself as a “leading AI quantitative trading platform” that claimed to combine blockchain technology with artificial intelligence to generate returns for investors. The platform promised daily returns of between 0.57% and 2.8%, which would equate to compound annual returns of approximately 3,000%. Users were told they simply needed to “click a button” in the app each day to trigger automated cryptocurrency trades on their behalf.

In reality, Cosetek had no legitimate trading operation. The platform was identified by multiple regulatory authorities and independent analysts as a classic Ponzi scheme — one of over seventy similar “click a button” app frauds believed to originate from the same group of operators. The website domain cosetek.com was originally registered in 2017 but repurposed for the scam in approximately July 2023. The platform claimed to be based in Fife, Washington, USA, but investigators could not confirm any legitimate business activity at that address.

Cosetek was not authorised or regulated by the Financial Conduct Authority (FCA) in the United Kingdom. On 12 December 2023, the FCA issued formal warnings against both Cosetek and Coscoin, confirming that neither entity had permission to carry out or promote financial services in the UK.

How the Cosetek Scheme Worked

The Cosetek fraud operated through a multi-layered structure designed to attract new investors and incentivise recruitment:

Investment Tiers: Users invested in USDT (Tether cryptocurrency) across six “VIP” levels, ranging from 30 USDT at the lowest tier to 999,999 USDT at the highest. Higher tiers required users to recruit increasing numbers of new investors — from five at VIP2 to forty at VIP6.
False Trading Claims: Investors were told to log into the app and “click a button” daily, supposedly triggering AI-powered quantitative trades. In reality, clicking the button did nothing — no actual trading took place.
Pyramid Recruitment: The scheme paid referral commissions of 21% on Level 1 recruits, 7% on Level 2, and 3% on Level 3. This multi-level structure is a hallmark of pyramid and Ponzi schemes.
Crypto-Only Payments: All deposits and withdrawals were conducted in cryptocurrency (USDT), typically via legitimate exchanges such as Kraken. This made it harder for banks to identify the ultimate destination of funds and complicated recovery efforts.
Social Proof and WhatsApp Groups: The scheme spread primarily through workplace word-of-mouth and WhatsApp groups, with early investors sharing screenshots of apparent profits to recruit friends, family, and colleagues.
Final Cash Grab: On 23 November 2023, Cosetek ran a “Thanksgiving special” offering to double deposits — a last-ditch effort to extract maximum funds before the inevitable collapse.
Collapse: Shortly after the Thanksgiving promotion, the platform claimed it had been “attacked by hackers” and halted all withdrawals. The website and app were subsequently disabled without notice, leaving the vast majority of investors with total losses.

Regulatory Warnings and Police Action

Multiple authorities took action against Cosetek:

FCA Warning (12 December 2023): The Financial Conduct Authority confirmed that Cosetek is not authorised to carry out or promote financial services in the UK, warning consumers to avoid dealing with the firm.
Washington State DFI (September 2023): The Washington State Department of Financial Institutions issued a consumer alert describing Coscoin as “a fraudulent cryptocurrency trading platform” and filed formal Statement of Charges alleging violations of the Securities Act of Washington.
NEROCU Warning (January 2024): The North East Regional Organised Crime Unit issued a public warning after 78 victims in the North East of England alone reported combined losses of £214,869.
Cleveland Police (January 2024): Cleveland Police confirmed multiple reports of fraud relating to Cosetek and warned the public to exercise extreme caution with similar platforms.

The Scale of Losses

The collapse of Cosetek caused widespread financial harm across the United Kingdom and internationally. According to analysis by BehindMLM, 22% of all Cosetek victims worldwide were based in the UK — the highest proportion of any single country. In the North East of England alone, police recorded 78 victims with combined losses of £214,869 and an average individual loss of £2,900.

However, the true scale of losses is believed to be significantly higher. Many victims have not reported their losses to police, and the scheme spread extensively through workplaces including the Nissan plant in Washington, Tyne and Wear, where numerous employees were affected. Individual losses reported in the media range from £500 to several thousand pounds, with some victims reportedly re-mortgaging their homes or investing wedding savings.

The scheme particularly targeted working-class communities in the North East, exploiting trust between colleagues and friends to spread through word-of-mouth recruitment.

Signs You May Have Been a Victim of the Cosetek Scam

If you recognise any of the following, you may have a valid claim for reimbursement from your bank:

You transferred money to a cryptocurrency exchange (such as Kraken) specifically to invest in Cosetek, Coscoin, or COS

You were promised daily returns of 2–3% or told you could double your money within weeks

You were recruited by a friend, colleague, or family member who showed you screenshots of their supposed profits

You were added to WhatsApp groups where administrators promoted the scheme and dismissed concerns

You participated in the ‘Thanksgiving special’ in November 2023 where deposits were supposedly doubled

You have been unable to withdraw your funds since late November 2023 and the platform is now inaccessible

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What to Do If You Lost Money to Cosetek

Gather your evidence

Collect bank statements showing payments to cryptocurrency exchanges, screenshots of your Cosetek account balance, and any WhatsApp messages or promotional material you received about the scheme

Report to Action Fraud

File a report at actionfraud.police.uk or call 0300 123 2040 to obtain a crime reference number. This is essential for formal complaints and demonstrates you have taken appropriate steps

Contact your bank

Report the payments as relating to a fraud and request reimbursement under the APP fraud reimbursement rules. Your bank is required to investigate and respond within a set timeframe

Do not pay for ‘recovery services’

Be aware that scammers often target fraud victims a second time by offering fake recovery services. Never pay upfront fees to anyone claiming they can recover your cryptocurrency

Keep records of your bank’s response

If your bank refuses your claim, keep all correspondence. Their reasons for refusal will be important if you need to escalate your complaint to the Financial Ombudsman Service

Contact Compensation Adviser

We can review your case free of charge and advise whether you have grounds for a successful claim against your bank or payment provider

Can I Recover Money Lost to Cosetek?

If you transferred funds from a UK bank account to a cryptocurrency exchange for the purpose of investing in Cosetek, you may have grounds for a refund claim against your bank. There are several potential recovery routes:

APP Fraud Reimbursement: Under the Payment Systems Regulator’s mandatory reimbursement rules (effective from 7 October 2024), victims of authorised push payment fraud are entitled to reimbursement of up to £85,000 from their payment service provider. Banks must process claims within five business days. Even for payments made before October 2024, the voluntary Contingent Reimbursement Model (CRM) Code may apply.
Financial Ombudsman Service (FOS): If your bank rejects your reimbursement request, you can escalate your complaint to the FOS free of charge. The Ombudsman will assess whether your bank fulfilled its duty of care — including whether it should have identified the payments as potentially fraudulent and intervened to protect you.
Bank Duty of Care: Banks have a responsibility to detect and prevent fraud. If your bank failed to flag unusual payment patterns, did not provide scam warnings, or did not question large or repeated transfers to cryptocurrency exchanges, it may be liable for your losses.
Chargeback: If you made payments by debit card to a cryptocurrency exchange, your bank may be able to initiate a chargeback claim. However, this route is more complex where the immediate payee (the exchange) provided the service requested (cryptocurrency purchase).

Why Choose Compensation Adviser for Your Cosetek Claim?

Crypto Fraud Specialists: We have extensive experience handling claims arising from cryptocurrency Ponzi schemes and understand the specific challenges of tracing payments through exchanges.
No Win, No Fee: Our service operates on a strict no-win, no-fee basis. If we do not recover compensation for you, there is no fee to pay.
FOS Escalation Expertise: We know how to build compelling complaints to the Financial Ombudsman Service, focusing on the arguments most likely to succeed in cryptocurrency fraud cases.
End-to-End Support: From gathering evidence and drafting your initial bank complaint through to FOS escalation and final resolution, we manage the entire process on your behalf.

Frequently Asked Questions

Can I get my money back from Cosetek?

While recovering funds directly from Cosetek is extremely unlikely (the platform has collapsed and its operators are untraceable), you may be able to claim a refund from your bank. If you transferred money from a UK bank account to a cryptocurrency exchange for the purpose of investing in Cosetek, your bank may be liable under APP fraud reimbursement rules if it failed to adequately protect you from the scam.

Was Cosetek regulated by the FCA?

No. The FCA issued a formal warning on 12 December 2023 confirming that Cosetek (www.cosetek.com) is not authorised to carry out or promote financial services in the United Kingdom. A separate warning was also issued for Coscoin (www.coscoins.com). This means investors have no access to the Financial Services Compensation Scheme (FSCS) for claims against Cosetek directly — but claims against your bank remain a viable route.

My bank already refused my claim. Can I still get a refund?

Yes. An initial refusal from your bank is not the end of the process. You have the right to escalate your complaint to the Financial Ombudsman Service (FOS), which is an independent body that resolves disputes between consumers and financial firms. The FOS will assess whether your bank met its obligations to protect you from fraud. Many claims that are initially refused by banks are subsequently upheld by the Ombudsman.

How long do I have to make a claim?

Under the PSR’s mandatory APP fraud reimbursement rules, you must report the fraud within 13 months of the last fraudulent payment. For Financial Ombudsman complaints, you generally have six years from the date of the event or three years from when you became aware of the problem. Given that Cosetek collapsed in November 2023, it is important to act promptly to preserve your rights.

What are your fees?

We operate on a no-win, no-fee basis. If your claim is successful, we charge a fee of 15% + VAT of the total compensation awarded. If we do not recover any money for you, there is no fee to pay.

What evidence do I need to make a claim?

The key evidence includes bank statements showing payments to cryptocurrency exchanges (such as Kraken), any screenshots of your Cosetek account or communications about the scheme, WhatsApp messages from group administrators, and your Action Fraud crime reference number. If you no longer have some of these, we can still assess your case — your bank statements alone may be sufficient to proceed.

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