CRYPTO SCAM ELITE PALACE PROSPERITY SCAM

Reports submitted to the Better Business Bureau (BBB) Scam Tracker suggest an individual named Marcus Hawthorne is one of the people running a potential cryptocurrency scam under the name ElitePalace Prosperity Group. The company, however, has also issued several press releases in late 2025 promoting its "Smart Compliance Technology".

Allegations of Scam

A report filed on the BBB Scam Tracker on December 6, 2025, details a scenario consistent with a potential crypto scam:

Initial Engagement: ElitePalace advertised educational content on stocks and crypto via social media, initially providing seemingly profitable recommendations to build trust.
The Platform: Users were eventually directed to a platform called Milase.com to participate in "testing" with provided funds. All trades were for cryptocurrencies that only existed on this specific platform, meaning their value could not be verified elsewhere.
The Transition: After users saw simulated profits, they were encouraged to invest their own money, at which point issues with withdrawing funds or validating asset values likely occurred, although the report doesn't explicitly state the outcome of the user's investment.
Red Flags: The use of a proprietary platform with non-verifiable crypto assets and promises of high returns are major red flags for a potential scam, according to consumer advice sources.

BEWARE!

The people running the group are: Marcus Hawthorne, Alec Merritt and Tessa Marlowee.

The allure begins with genuine expertise. On social media, a group calling itself ElitePalace draws in investors with a sophisticated curriculum on market mechanics, offering educational insights that appear indistinguishable from high-level financial coaching. For months, the group’s leadership—identified as Marcus Hawthorne, Alec Merritt, and Tessa Marlowee—built a facade of immense credibility by issuing stock and cryptocurrency recommendations that frequently yielded short-term gains of 20% to 50%. To further cement the bond with their audience, the organizers distributed "free" capital in the form of Bitcoin, USDT, and their proprietary token, ELIX.

YOU'LL NEVER GET YOUR MONEY BACK!!

IT'S A SOPHISTICATED CRYPTO SCAM

Inside the Digital Mirror: How "ElitePalace" Uses Education to Mask a High-Stakes Crypto Illusion

The allure begins with genuine expertise. On social media, a group calling itself ElitePalace draws in investors with a sophisticated curriculum on market mechanics, offering educational insights that appear indistinguishable from high-level financial coaching. For months, the group’s leadership—identified as Marcus Hawthorne, Alec Merritt, and Tessa Marlowee—built a facade of immense credibility by issuing stock and cryptocurrency recommendations that frequently yielded short-term gains of 20% to 50%. To further cement the bond with their audience, the organizers distributed "free" capital in the form of Bitcoin, USDT, and their proprietary token, ELIX.

The pivot from education to a closed-loop ecosystem occurred under the guise of a "one-week test" on a proprietary trading platform known as Milase. In a calculated move to eliminate risk aversion, ElitePalace provided participants with $700 in "house funds," allowing them to keep any profits earned over a week of high-frequency trading provided the initial principal was returned. One observer reported seeing that $700 grow to $1,900 in just five days. However, the mechanism of this success was entirely contained within Milase; the cryptocurrency pairs being traded existed only on that platform, making it impossible to validate the price action against the broader global market.

Investigation into the Milase platform reveals a series of profound anomalies that suggest a "walled garden" designed to deceive. While mainstream exchanges value certain niche tokens at mere pennies, the Milase interface lists those same assets at valuations exceeding $100. Furthermore, the platform offers unique futures trading capabilities that are unavailable on any regulated exchange. The operational strategy of ElitePalace mirrors that of other known entities, such as Ellsworth & Vane, utilizing identical platform interfaces and partner programs to lure capital.

The scheme has now entered a more aggressive phase, with leaders encouraging participants to invest their own capital while maintaining a facade of "conservative" advice. To maintain the illusion of value, the group has implemented a lock-up period, preventing users from selling their native tokens under the pretense of "market stability"—a move rarely seen in legitimate, liquid markets. Despite the lack of verifiable history for Milase.com, investors are reportedly pouring large sums into the platform, convinced by the narrative that these tokens provide unprecedented liquidity. In reality, the entire environment appears to be a digital mirror, reflecting whatever gains are necessary to keep the capital flowing in.