Fred Stege's Elysium Network, launched in 2019, continued to market itself as a "brand new opportunity" well into 2021, even after its initial securities fraud surfaced. The company operated the "Elysium Capital Pinnacle Portfolio," an investment scheme that solicited €500 EUR with promises of passive returns.
Neither Elysium Network, Stege, nor any associated shell companies held the required registrations to offer securities in any jurisdiction. This structure violated financial regulations, making it an unregistered securities offering. The scheme partnered with Equiti Group, which Stege identified as a broker in August 2020, to facilitate its trading operations.
In May 2021, Elysium Network abruptly closed affiliate trading accounts. Internal communications among affiliates showed extensive losses, with some reporting over 70% of invested funds gone. While only a few hundred affiliate accounts were reportedly active, the financial impact was significant. Upline affiliates, who likely earned substantial recruitment commissions, reportedly told victims to "just accept the loss and move on."
Elysium Capital, in a mid-June email, blamed "dead moments" in the trading system. The company claimed its automated trading expert advisor (EA) could not execute necessary hedges after 16:27:49 on certain days, causing substantial drawdowns. They specifically attributed these errors to the Equiti Group accounts, asserting other brokers' accounts did not experience similar issues, indicating a "general issue" with Equiti. Affiliates found themselves caught between Elysium Network and Equiti Group, each entity blaming the other for the collapse.
Fred Stege quickly rebranded Elysium Capital as a crypto trading platform. This pivot coincided with a broader disruption: both the Elysium Network and Elysium Capital websites went offline in early June, shortly after the Equiti Group trading issues surfaced. The Elysium Network site was restored on June 10th. The Elysium Capital website, however, remained inaccessible, displaying only a period as a placeholder. Stege has not publicly addressed this outage or the fate of Elysium Capital.
A May 2021 presentation by Stege detailed "Elysium Insider," described as a signals trading service for both Equity affiliates and retail customers. The presentation did not clarify whether an automated trading component still existed within Elysium Network's new iteration. The shift to crypto trading signals, without proper regulatory disclosure, raises further questions about the legality of Elysium Network's ongoing operations.
Financial authorities, such as the U.S. Securities and Exchange Commission (SEC) and European regulators like BaFin in Germany or the FCA in the UK, mandate that companies offering investment opportunities, including those based on crypto assets or trading signals, register and provide transparent disclosures. Failure to comply exposes investors to significant risks and can result in severe penalties for operators. Victims of unregistered schemes often face an uphill battle to recover funds, typically needing to file complaints with regulatory bodies and potentially pursue civil litigation.
The Elysium Network's pattern of unregistered securities offerings, sudden account closures, and an unexplained website shutdown mirrors tactics seen in other suspected financial frauds. The company's continued operation under Fred Stege's direction, even in a modified form, suggests a disregard for investor protection and regulatory compliance.
Individuals who believe they have lost money through Elysium Network or Elysium Capital should contact their national financial regulator or law enforcement agency immediately to report the alleged fraud.