Active case  ·  Stanton & Jones LLP  ·  Class action

The Case
Against
Niklas Freihofer

Stanton & Jones LLP is pursuing legal action against Niklas Freihofer — confirmed owner of TAG Markets — and his network of associated schemes including Zeus Funding, Crowd1, CashFX and Eaconomy. Our sole purpose is to bring those responsible to justice and recoup funds for every victim.

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TAG Markets webinar  ·  October 2025

Niklas Freihofer
on camera.

Platforms under investigation

TAG Markets TAG Markets
Zeus Funding Zeus Funding
Crowd1 Crowd1
CashFX CashFX
Eaconomy Eaconomy

About the case

What we know.
What we are doing about it.

Niklas Freihofer (operating as "Nik Freihofer") is alleged to be the owner and operator of TAG Markets — an unregistered trading platform incorporated through shell companies in Mauritius (T.M. Financials Ltd) and Saint Lucia (Tag Markets Ltd). Dutch financial regulators issued a fraud warning against T.M. Financials Ltd in July 2025. TAG Markets has been used to funnel victims from multiple collapsed Ponzi schemes, including Crowd1 and CashFX, into a new layer of alleged fraud through a product marketed as "Sonic AI Copytrader".

Freihofer's network also encompasses Zeus Funding (co-founded by Michael Eder, Austria), a TAG Markets partner operating through Telegram, and Eaconomy, where Freihofer served as a promoter. The same Mauritius address and broker-dealer licence was previously used by Pure North Markets Ltd, which surrendered its licence in March 2024 — the same month TAG Markets' domain was registered. Thousands of individuals across multiple jurisdictions are believed to have suffered losses as a direct result of this network.

Stanton & Jones LLP is coordinating a class action against Freihofer and his associates. If you have invested through TAG Markets, Zeus Funding, Eaconomy, CashFX, Crowd1, Pure North Markets, or any platform you believe was connected to this network, the team wants to hear from you. Recovery of lost funds and substantial compensation may be available.

Important: These are allegations. No court has made a finding of liability at this stage. This page exists solely to connect potentially affected parties with qualified legal counsel ahead of formal proceedings.

170K+

Enrolled in the action hub

2011

Earliest known incident

Multi-M

Estimated capital losses

Global

Jurisdictions in scope

The alleged network

Platforms & associates
under investigation.

The schemes below are believed to be connected to Niklas Freihofer through ownership, promotion, or the active funnelling of victims. If you invested through any of these platforms, you may be eligible to participate in the class action.

Primary vehicle · confirmed owner

TAG Markets

Unregistered trading platform operating through T.M. Financials Ltd (Mauritius) and Tag Markets Ltd (Saint Lucia). Pitches "Sonic AI Copytrader" passive income. Domain registered March 2024 — same month predecessor Pure North Markets surrendered its Mauritius licence. Freihofer confirmed appearing as owner on webinars from October 2025.

⚠ Dutch AFM fraud warning · July 2025

TAG Markets partner · MLM

Zeus Funding (Zeus 12X)

Telegram-based MLM (handle @zeusinstant) with no public website. Co-founded by Michael Eder (Austria) and marketed as a TAG Markets partner offering "funded account" passive returns of up to 10x. Compensation plan pays recruiters across five unilevel levels.

⚠ Withdrawals disabled · February 2026

Predecessor entity

Pure North Markets Ltd

Operated from the same Mauritius address and held the same broker-dealer licence as T.M. Financials Ltd. Voluntarily surrendered its FSC Mauritius licence in March 2024. TAG Markets' domain was registered the same month. Believed to be the predecessor entity to TAG Markets.

Feeder scheme · Ponzi

Crowd1

MLM Ponzi scheme run by Jonas Eric Werner (Swedish national, Dubai). Launched 2019; six accomplices sentenced to prison by Stockholm District Court in May 2025. Crowd1 victims were actively directed to TAG Markets via in-platform pop-ups in September 2025, with recruitment tied to CBIT token holdings.

Feeder scheme

CashFX

Forex-themed investment scheme whose victims are being directed to TAG Markets for "passive income" through the Sonic AI copy-trading product. CashFX participants were targeted with TAG Markets promotional material in the same period as Crowd1 participants.

Prior promotion role

Eaconomy

Freihofer cited himself as an Eaconomy promoter on social media before deleting his profiles. Eaconomy is a trading education and copy-trading MLM. His involvement establishes a prior pattern of promoting unregistered passive-income trading schemes before their eventual collapse.

Associated individuals

Niklas Freihofer

Niklas Freihofer

Confirmed TAG Markets owner. German national. Deleted social profiles prior to regulatory scrutiny.

Profiles deleted

Michael Eder

Michael Eder

Co-founder & Managing Partner, Zeus Funding. Austria-based. Also associated with a venture called Zyra.

Jared Esguerra

Jared Esguerra

Cited as TAG Markets owner on earlier webinars. Dubai-based. Claims "financial services" background.

Kevin Marin Vélez

Kevin Marin Vélez

Cited as TAG Markets co-founder & CEO in marketing material. Colombia / Dubai-based. Mister Colombia 2014.

●  behindmlm.com · Oct – Nov 2025

What the record
already shows.

2 October 2025 — BehindMLM

"Crowd1 Ponzi victims are being funneled into an unregistered trading scheme run through Tag Markets. In communications sent out late last month, Director and higher ranked Crowd1 promoters have been advised they can register for Tag Markets through their Crowd1 back office."

"Tag Market only having ties to shell companies in two dodgy jurisdictions is an immediate red flag."

"Dutch authorities issued a T.M. Financials Ltd fraud warning in July 2025… Tag Markets has already attracted the attention of financial regulators."

"Tag Markets being integrated into Crowd1's backoffice suggests Werner has struck a deal with the platform. This will likely see Werner paid a commission on new investment made into Tag Markets by Crowd1 investors… notwithstanding total loss of money invested into Tag Markets, which is in addition to funds already lost across the many Crowd1 Ponzi reboots."

3 October 2025 — reader comment, BehindMLM

"CashFX victims are also being funneled to TAG Markets to earn passive income from their copy trading program. The owner of TAG Markets is Niklas Freihofer."

Update · 24 October 2025

"Niklas Freihofer (as Nik) has begun appearing on marketing webinars as owner of Tag Markets."

"'Michael' above Freihofer is Michael Eder. Eder is co-founder of Zeus Funding, another Tag Markets fraudulent investment scheme."

9 October 2025 — Zeus Funding Review, BehindMLM

"Zeus Funding has no retailable products or services. Promoters are only able to market Zeus Funding promoter membership itself… Zeus Funding claims to be a partner of Tag Markets… Based on Eder being based out of Austria, it follows Zeus Funding is operated from Austria. Tag Markets is represented to be operating from Colombia and Dubai."

Source: BehindMLM — Crowd1 victims being funneled into Tag Markets fraud (Oct 2025)  ·  Zeus Funding Review (Oct 2025)  ·  Quotes reproduced for the purpose of legal proceedings. All statements are allegations.

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Register your interest

Have you been
a victim?

If you believe Niklas Freihofer or his associates caused you financial harm, register below. This is a no-obligation first step — our team reviews all submissions and will contact you with next steps. The firm at Stanton & Jones may be able to recoup your lost funds and secure compensation on your behalf.

Fields marked * are required. Your data is processed solely for the purposes of this legal action and will not be shared with third parties outside the legal team.

Further Reading

When the law delivers.

Class actions have forced governments, banks, and fraudsters alike to make victims whole. These are cases where persistence paid off.

Enron Corporation logo
Securities fraud · 2008

Enron Corporation Shareholder Litigation

$7.2 billion recovered

After Enron's 2001 collapse wiped out shareholders and employees alike, a coordinated class action against the company, its auditors Arthur Andersen, and underwriting banks including Citigroup and JPMorgan secured one of the largest securities-fraud settlements in history. Perseverance over seven years made the difference.

Outcome: Lead counsel extracted settlements from Citigroup ($2B), JPMorgan ($2.2B), and others. Executives convicted. Most claimants received meaningful distributions.

Bernie Madoff booking photo
Ponzi scheme · 2009–2024

Bernard L. Madoff — SIPC Recovery

$14.7 billion returned to victims

Madoff's $65 billion Ponzi scheme seemed unsurvivable for victims. Yet through relentless litigation by trustee Irving Picard — pursuing feeder funds, banks, and international intermediaries — over $14 billion was ultimately returned, covering most principal losses for net losers who registered their claims.

Outcome: Over 40,000 claims. Feeder funds like Fairfield Sentry disgorged billions. Registering early was critical to receiving distributions.

BitConnect BCC token
Crypto fraud · 2022

BitConnect — DOJ & SEC Action

$56 million seized + global promoter penalties

BitConnect promised guaranteed daily returns via an algorithmic trading bot that did not exist. After its 2018 collapse, a multi-year DOJ prosecution culminated in 2022 with founder Satish Kumbhani charged with wire fraud and market manipulation. US promoters pleaded guilty. Victims who had registered interest received distributions from seized assets.

Outcome: Kumbhani indicted on 5 counts. Glenn Arcaro (top US promoter) sentenced to 38 months. Asset recovery ongoing via DOJ forfeiture fund.

Tezos XTZ logo
ICO securities fraud · 2020

Tezos Foundation — ICO Class Action

$25 million settlement

Following Tezos's $232 million 2017 ICO, investors alleged unregistered securities sales and misrepresentations. After sustained class certification battles, the Tezos Foundation settled for $25 million in 2020 — a landmark outcome establishing that ICO participants could use class-action mechanisms to recover losses from token projects.

Outcome: One of the first ICO class actions to reach settlement. Established key precedent for applying securities law to token sales.

Sam Bankman-Fried
Crypto exchange fraud · 2022–2024

FTX Collapse — Customer Recovery

~$14.5 billion approved for creditors

When FTX filed for bankruptcy in November 2022 with an estimated $8 billion shortfall, recovery looked impossible. A bankruptcy-driven class action and asset recovery process — combined with SBF's criminal conviction in 2023 — resulted in a reorganisation plan approved in 2024 returning 100 cents on the dollar to most customers, plus interest.

Outcome: Sam Bankman-Fried sentenced to 25 years. FTX reorganisation plan approved May 2024. Most creditors made whole.

OneCoin office door in Sofia
Pyramid scheme · 2019–ongoing

OneCoin — The "Cryptoqueen" Case

$4 billion+ fraud; convictions secured

OneCoin defrauded millions of investors worldwide through a fraudulent cryptocurrency that never had a functioning blockchain. Co-founder Konstantin Ignatov pleaded guilty in 2019. US authorities have seized assets and continue to pursue Ruja Ignatova internationally. Class actions in multiple jurisdictions have secured interim injunctions and partial asset freezes.

Outcome: Multiple convictions. Assets frozen in several jurisdictions. Civil litigation and regulatory action ongoing — demonstrating that even the largest crypto frauds are not beyond reach of the law.

FAQ

About class actions.

A class action is a legal mechanism that allows a group of people who have suffered similar harm — typically at the hands of the same defendant — to bring a single consolidated claim rather than each pursuing individual litigation. This dramatically reduces cost per claimant, levels the playing field against well-resourced defendants, and enables cases to be brought that would be uneconomic for any single victim to pursue alone. In the UK, class actions are commonly structured as "Group Litigation Orders" (GLOs) under the Civil Procedure Rules.
If you invested funds — in any amount — through a platform, scheme, or individual you believe to be connected to Niklas Freihofer or his associates, you may qualify. This includes direct investments, referrals into trading platforms, participation in yield or staking schemes, and funds passed through intermediaries that you later discovered were linked to this network. At the registration stage, no proof is required — you simply provide a factual account and the legal team assesses eligibility. Registering costs nothing and does not commit you to anything.
Registering your interest is entirely free and creates no financial obligation. Class actions of this nature are typically conducted on a conditional fee basis (also known as "no win, no fee"), meaning legal fees are only payable if funds are successfully recovered. The precise fee arrangement will be set out in the formal retainer agreement, which Stanton & Jones will provide to eligible claimants before any costs accrue. You will never be asked to pay anything upfront.
Class actions involving financial fraud typically progress through several stages over two to five years: evidence gathering and class certification (six to eighteen months), disclosure and pre-trial litigation (one to two years), and either settlement or trial. Many large fraud cases settle before reaching a full trial once the defendant recognises the weight of the consolidated claim. Cryptocurrency and cross-border fraud cases may take longer due to asset tracing complexity, but interim injunctions and asset freezes can be sought early in the process — sometimes within weeks of filing — to prevent dissipation of recoverable assets.
Recovered funds are distributed to class members on a pro-rata basis, typically in proportion to verified losses. The court-approved distribution plan will specify the exact methodology. Legal fees and litigation costs are deducted from the recovery before distribution. In cases where full recovery is not achievable, the legal team will seek to maximise the return and present any settlement for class approval before it becomes binding — each class member has the right to object or opt out of a proposed settlement.
At the registration stage, no commitment is made. Once a formal Group Litigation Order or opt-in scheme is established, joining does generally mean agreeing to be bound by the outcome of the collective proceedings rather than pursuing a duplicative individual claim for the same losses. However, if you have claims against entirely separate defendants — for example, a financial adviser who negligently recommended the scheme — those remain unaffected. The engagement letter will explain the precise scope before you formally opt in.
Your data is processed solely for the purposes of this legal action by Stanton & Jones LLP, acting as data controller. It will not be sold or shared with third parties outside the legal team and any instructed counsel, forensic experts, or court-appointed officers who need access as part of the proceedings. Data is held securely in accordance with UK GDPR and the Data Protection Act 2018. You may request access to, correction of, or deletion of your data at any time by contacting contact@stantonandjones.com.
You do not need to have evidence ready to register. However, gathering the following now will accelerate the assessment of your claim: screenshots or PDFs of account statements and transaction records; any communications (email, Telegram, WhatsApp, SMS) with the scheme operators or introducers; wallet addresses you sent funds to or received funds from; records of any platform logins, usernames, or profile pages; and details of any other individuals who referred you. Even partial records are valuable — the legal team has experience reconstructing loss calculations from incomplete documentation.