🚨 When “Crypto Education” Becomes a Risky Financial Promotion

There’s a lot of noise right now about crypto, DeFi, and the new “education academies” promising to show people how to get rich from them. I recently reviewed one such promotion, the Crypto & DEFI Academy, and I want to share what I found—not to rant, but to demonstrate what basic due diligence reveals.

This isn’t about being anti-crypto. It’s about asking the same questions any prudent investor should ask before parting with money.

1. Regulatory Gaps

The FCA has been crystal clear: crypto promotions must be fair, clear, and not misleading, with standard risk warnings.
The ASA has repeatedly banned adverts that hype crypto while downplaying risks.
Yet on this site, there are no prominent risk warnings, no mention of the lack of FSCS/FOS protection, and heavy use of hype language like “learn how to profit from crypto & DeFi.”
Crucially, the promoter Longstem Ltd is not authorised by the FCA, meaning any “financial promotion” could already be unlawful.

2. Opaque Promoter Identity

The terms and conditions name Longstem Ltd (trading as the Investment Club).
But they give no FCA reference number, no registered office on the landing page, and no clarity on who is actually behind the promotion.
That lack of transparency should be a red flag for anyone.

3. Financial Fragility

The company’s latest accounts show a £402k loss in 2024, wiping out three-quarters of its equity in one year.
Cash fell from £404k to £52k, while creditors and director loans increased.
In plain English: the business looks loss-making, cash-strapped, and reliant on fresh share issues to survive.
Should people trust such a promoter to provide impartial financial education on high-risk markets?

4. FOMO and Hype Tactics

The site uses countdown timers, celebrity images, and language that implies guaranteed success.
These are classic pressure-selling tactics—precisely the kind of behaviour the FCA has warned against.

Why This Matters

Sceptics of crypto are often dismissed as “boomer TradFi.” But this isn’t about nostalgia for the old financial order. This is about:

Transparency: Who is actually promoting this product?
Compliance: Are the rules on risk disclosure and fair promotion being followed?
Financial resilience: Is the promoter even in a stable position to deliver what they promise?

These are the kinds of questions any investor—crypto or otherwise—should ask.

The Bottom Line

Crypto is high risk. That’s not up for debate—it’s the FCA’s own wording. If you choose to participate, you should do so with eyes open to both potential reward and potential loss.

But when promotions come from firms with no FCA authorisation, weak financials, and heavy reliance on hype, the risks multiply.

That’s not the voice of a bitter boomer. That’s the outcome of basic due diligence. And it’s the kind of scrutiny every investor deserves before they dive in.

🚨 Crypto Promotions: Where’s the Balance?

Here’s what stood out to me:

Lots of hype about profit and opportunity – but no clear, prominent risk warning.
Countdown timers and urgency tactics designed to create FOMO.
Celebrity images and testimonials suggesting credibility, without balance or context.
No mention of the FCA’s standard disclosure:
“Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.”

Under FCA rules, crypto promotions must be fair, clear, and not misleading. The ASA has banned multiple adverts for exactly these kinds of issues.

This is not about opposing innovation. It’s about protecting people from financial harm by ensuring they can see both sides of the story – the potential and the risks – before making any decision.

💡 If we want a fair debate on crypto, we need to move beyond hype and give people the information they deserve.

I’ve gone through the landing page carefully and assessed it against FCA financial promotions rules and ASA advertising standards for crypto. Here’s what I found:

🚩 Potential Breaches

1. Promotional Tone Without Balanced Risk Disclosure

The page heavily emphasises wealth-building, opportunity, and exclusivity (“Learn how to profit from crypto & DeFi”, “build the future of money”, countdown timer urgency).
FCA rules require crypto promotions to be “fair, clear, and not misleading” with prominent, standardised risk warnings.
On this page, risks are either absent or buried—there’s no prominent disclosure of volatility, lack of FSCS/FOS protection, or risk of total loss.
Breach risk: Misleading by omission, hyping the upside without equal weight on risk.

2. Use of Testimonials and Celebrity Endorsement Without Risk Context

Visuals of public figures (e.g., Mike Novogratz, crypto imagery) imply legitimacy.
ASA has previously banned crypto ads using celebrities or influencers without clear disclaimers.
No disclaimer that these endorsements may not be impartial or that results are not typical.
Breach risk: Exploiting consumer trust in authority figures.

3. Urgency and FOMO Tactics

Countdown timer (“00 days 22 hours 12 minutes”) creates pressure to act quickly.
FCA explicitly warns against “pressure-selling tactics” in crypto promotions.
Breach risk: Inducing unsuitable purchases through urgency.

4. Investment Language Without FCA Authorisation

Terms like “profit from crypto & DeFi”, “learn how to make money” suggest investment outcomes.
Unless the provider is FCA-authorised (or promotion is approved by an authorised firm), this is likely an illegal financial promotion.
Breach risk: Unauthorised promotion of a regulated financial product.

5. No Visible Risk Warning Box

FCA requires a standard risk warning in crypto ads: “Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.”
This must be prominent (not small print). The landing page does not show this.
Breach risk: Non-compliance with FCA’s mandatory risk disclosure.

6. Implied Guarantees of Success

Phrases like “build the future of money”, “learn how to profit,” “exclusive academy” imply a pathway to guaranteed gain.
ASA has banned crypto ads that suggest assured returns or downplay risks.
Breach risk: Misleading impression of likely outcomes.

7. Omission of Regulatory Status

FCA requires clarity on whether the firm is authorised and whether consumers have FSCS/FOS protection.
No mention of this on the page.
Breach risk: Misleading by omission—consumers may assume protections exist when they don’t.

✅ Summary of Findings

I detect at least 7 potential regulatory breaches on this landing page:

Upside hype without risk balance.
Use of testimonials/celebrity images without disclaimers.
Urgency/FOMO countdown tactics.
Investment language without FCA approval.
No standard FCA risk warning.
Implied guarantees of success.
No disclosure of regulatory status / protections.

👉 Regulatory Note: Based on a review of the landing page, this promotion appears non-compliant with both FCA and ASA rules. It presents itself as “crypto education” but strays into financial promotion without the required authorisations, risk warnings, or balance of information. That combination risks misleading consumers and could expose the operator to FCA and ASA enforcement action. With a public event due next month, it feels important that the regulators take a closer look now—before more consumers are potentially drawn in by hype rather than facts.

On review of the text of the Terms & Conditions.

1. Promoter identity

The terms say: “This platform is a website operated by Longstem Ltd, trading as the Investment Club.”
That names a company but does not provide a company registration number, address, or directors.
Nor does it explain the legal status of “London Real Academy” versus “Longstem Ltd.”
The identity of the promoter is therefore not made clear enough for regulatory purposes.

2. FCA authorisation

Nowhere in the terms is there any statement that Longstem Ltd or London Real Academy is authorised or regulated by the FCA.
If they were FCA-authorised, they would be required to state their firm reference number (FRN) and clarify what activities are regulated.
The text even includes disclaimers like “The content on our site is provided for general information only. It is not intended to amount to advice on which you should rely.”
That phrasing is often used when a firm is not FCA regulated and wants to avoid liability.

3. Regulatory disclosure requirements

FCA rules require that if a promotion involves crypto (a qualifying cryptoasset), the standard FCA risk warning must be prominently included. Nothing in these terms shows that warning.
There is no mention of FSCS (Financial Services Compensation Scheme) or FOS (Financial Ombudsman Service) protection—or the lack of it—which is required disclosure for crypto promotions.

✅ Summary

The terms and conditions do not confirm FCA authorisation.
The promoter’s identity is vague—a company name is given but with no registration number, address, or regulator details.
The lack of risk warnings and FCA disclosures means the document falls short of compliance requirements for any financial promotion involving crypto.

👉 In plain language: this looks like an unregulated outfit presenting itself as an “academy,” without making clear that it is not authorised by the FCA.

Here’s what I found at Companies House:

Companies House – Longstem Ltd

Registered as “LONGSTEM LIMITED”, company number 08372039.
The registered office is Kemp House, 152–160 City Road, London, EC1V 2NX.
Categorised under SIC codes primarily related to television programming and broadcasting, not financial services. (NACFB, Gerald Edelman).
Directors include Brian Rose and a corporate secretary (Thomas St John Ltd). (Company Check).
No indication that the company is involved in regulated financial activities.

FCA Register – Is Longstem Ltd FCA-authorised?

A search of the FCA’s Financial Services Register via their consumer tools did not return any results for “Longstem Ltd” or “Longstem Limited” as an authorised firm or individual. (fca.org.uk, register.fca.org.uk).
This strongly suggests that Longstem Ltd is not authorised, registered, or recognised by the FCA to carry out regulated financial activities—such as promoting or educating about crypto or offering investment services.

What does this mean?

Identity transparency: While the T&Cs name the company (Longstem Ltd), they do not include essential details like the Firm Reference Number (FRN), regulatory status, or director credentials—basic information expected in regulated financial promotions.
Lack of authorisation: Since Longstem Ltd is not FCA-authorised, any promotion of crypto-related education or investment—even as “academy” content—could fall under “unauthorised financial promotion,” which is a criminal offence unless approved by an FCA-authorised entity.

Summary Table

Issue	Details
Company identity	Longstem Ltd (08372039), based in London, broadcasting sector.
FCA authorisation status	Not authorised or listed on the FCA Financial Services Register.
Implications	Potentially illegal promotion of regulated crypto-related content.

Here’s what the latest unaudited accounts of Longstem Ltd (year ended 31 Dec 2024) tell us in plain English:

🔎 Key Observations

1. Heavy losses and shrinking equity

Loss for 2024: £402,207.
Equity fell from £531,795 to £129,588 in one year.
This means the business burned through ~75% of its equity in 2024.

2. Decline in cash reserves

Cash at bank fell sharply from £403,779 (2023) to £51,757 (2024).
That’s a drop of nearly 90%, suggesting liquidity pressures.

3. Rising liabilities

Total liabilities rose to £270,404 (2024) from £235,942 (2023).
Trade creditors (unpaid bills) and other creditors both increased.
Amounts owed to directors also doubled (from £28k → £64k).

4. Asset values falling

Tangible assets depreciated to £150,434 (2024) from £209,296 (2023).
This may reflect reduced equipment value or write-downs.
Net assets (after liabilities) shrank to £165,566 (2024) vs £567,773 (2023).

5. Reliance on share capital

Issued 10.7 million shares, raising just over £1m in proceeds.
Equity is propped up largely by share premium, not retained earnings.
Given ongoing losses, this looks like a company reliant on fresh capital raises to survive.

⚠️ Red Flags

Sustainability: With large losses, dwindling cash, and rising creditors, the financial position looks precarious.
Investor risk: Heavy dependence on new share issues may expose investors to dilution or eventual collapse if fresh capital dries up.
Transparency gap: Despite raising over £1m in shares, the accounts don’t explain how funds were spent (beyond general P&L categories).
Director loans: Amount due to directors (£63k) shows reliance on insiders to plug funding gaps.

✅ In summary

The accounts suggest Longstem Ltd is:

Loss-making and cash-depleting (burned through most of its equity in 2024).
Reliant on share issues and director loans to stay afloat.
Not obviously a financially stable or well-capitalised firm for running an “academy” that promotes investment education.

From a regulatory and consumer-protection perspective, the accounts raise serious questions about financial resilience—especially if this business is positioning itself as a trusted educator in high-risk markets like crypto.

💬 Disclosure: In the spirit of transparency, the Academy of Life Planning Ltd—of which I am founder—is a small, micro-entity company. Our most recent unaudited accounts (year ending April 2024) show modest current assets of £8,788, creditors of £12,682, and net liabilities of £2,158. We have no employees on payroll and operate as a lean, founder-led organisation. Unlike some high-profile promoters, we do not raise or burn through millions. We focus instead on sustainable growth and empowering individuals through education, free from hype or hidden agendas.

About Get SAFE

Get SAFE (Support After Financial Exploitation) was born from a simple truth: too many victims of financial abuse are left to suffer in silence.

We exist for people like Ian—for the ones who did everything right, only to be failed by the systems they trusted. We know that behind every vanished pension, every ignored complaint, and every stonewalled letter is a person—frightened, exhausted, and too often alone.

Get SAFE offers more than sympathy. We offer structure, support, and solidarity.
We provide a voice where there’s been silence, and clarity where there’s been confusion.
We stand beside those who have been exploited, not just to help them recover—but to help them reclaim their story and rebuild their future.

Because financial justice is not a luxury.
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If you or someone you know has been affected by financial exploitation, we are here.
You are not alone.

Learn more at: Get SAFE (Support After Financial Exploitation).