CRYPTO SCAM Marcus Hawthorne | Elite Palace

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.

Today, the psychological manipulation has reached a fever pitch. With the "Professor" declaring traditional stocks too risky, the suggested allocation has jumped to 80%, sparking a cult-like fervor among the members. Driven by the desire for "senior member" status and exclusive "premier signals," participants are now reportedly liquidating retirement accounts and seeking personal loans to chase a projected 300% weekly return. While the dashboard shows every trade as a winner, observers note the chilling atmosphere of a trap about to spring. The true test of the scheme remains on the horizon: the moment a participant attempts to withdraw their principal, an event that typically reveals the digital gains to be nothing more than a sophisticated mirage

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.

Based on recent reports, the trading platform Milase (specifically web.milase.com) is potentially involved in a scam, particularly one linked to a broader "task scam" or "pig butchering" scheme. One user reported their experience to the Better Business Bureau (BBB) Scam Tracker, indicating fraudulent activity.

Details of the Reported Scam

Modus Operandi: A user reported being recruited through social media into a stock and crypto education group ("ElitePalace" with individuals named Marcus Hawthorne, Alec Merritt, and Tessa Marlowee). After building trust and showing apparent "profits" using the group's funds on the Milase platform, users were encouraged to invest their own money.
Platform Issues: The user noted that the cryptocurrencies being traded on the Milase platform were unique to that platform and had vastly inflated values compared to their actual market worth elsewhere, making external validation impossible.
Unrealistic Promises: The scheme initially promised significant short-term profits (20-50% in a few days), a common hallmark of investment scams.

Warning Signs

Unsolicited Contact: The initial contact came through social media, a common entry point for scams.
Guaranteed High Returns: Any platform guaranteeing high returns with minimal risk is likely fraudulent.
Exclusive Platform: The use of a proprietary platform where assets cannot be verified on external, reputable exchanges is a major red flag.
Pressure to Invest More: The gradual shift from using "demo funds" to pressuring users to invest personal capital is a typical scam tactic.

How to Protect Yourself and Report Fraud

If you have interacted with this or similar platforms, take the following steps:

Stop All Communication: Immediately cease all contact with the individuals and the platform.
Do Not Send More Money: If asked for more money for "taxes" or "fees" to withdraw funds, it is a scam tactic. You will not get your money back.
Report the Scam: File a complaint with the appropriate authorities:
- Internet Crime Complaint Center (IC3): Report online fraud to the ic3.gov portal.
- Better Business Bureau (BBB) Scam Tracker: Share your experience on the BBB Scam Tracker to warn others.
- Federal Trade Commission (FTC): Learn more about crypto scams and report them to the consumer.ftc.gov website.

Always conduct due diligence and consult with a professional financial advisor before investing, especially with cryptocurrency.

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