Four fraudsters created a huge massive crypto (Bitcoin) scam and embezzled almost $300 million.
of frauds are increasingly present on the web. It must be said that with inflation, many people want to make money to make ends meet. In addition to the desire to become rich, a millionaire, many also believe crypto (cryptocurrency) to invest, with the risk of falling into a scam. Yes, even if it is completely possible get rich with bitcoins, for example, it is also possible to lose everything. Especially since massive fraud multiply in this environment.
100,000 investors fell victim to massive crypto scam
This has happened to some users. Indeed, recently four tricksters they’ve just created a giant, very clever crypto scam. These people still managed to cheat 295 million dollars CLOSER 100 thousand investors. The latter were finally caught by the Securities and Exchange Commission (SEC), the supervisory authority of the American financial markets. Information transmitted by wall paper.
In fact, the latter have used a widespread deception technique that sometimes goes unnoticed. Through a pyramid scheme, or ponzi schemethey managed to get rich off the backs of thousands of retail investors.
Scam: What is a Ponzi Scheme?
Small bracket, what is a pyramid scheme ? “A Ponzi scheme or pyramid scheme is illegal and is a fraud based on a simple idea: victims pay something to the fraudster who will reinvest some of that money to take on other victims” .
“In the pyramid system, there is the concept of hierarchy. At the bottom of the pyramid, we have the victims who pay but for what we have promised money, wealth. Therefore, these victims pay to receive this property. We have, then, the top of the pyramid: the Deceiver who victims pocket moneybut also reinvested some of it to prove that he is really who he is to his future victims, here a rich man”we can read in Encrage Media.
In everyday life, this can be characterized by a company that gets rich only by recruiting people who are willing to pay to become recruiters. They are promised wealth by becoming recruiters, but in general, these people win nothing and is the top of the pyramid getting richer.
Zoom in on the process used by these Bitcoin scammers
In the cases of these four scammers (of the company Trade Coin Club), they created a crypto scam that lasted two years. Their pyramid scheme? Reward older investors with funds from newer subscribers. During these two years of crypto fraud, Trade Currency Club would have raised 82,000 Bitcoins so today 295 million dollars in 2018.
How? They promised their 100,000 investors profits from a trading bot of cryptoassets. To attract new customersthis was their argument: a minimum daily return of 0.35%.
In short, the founder of the company would have personally raised $55 million, thanks to this pyramid system. He used the rest of the earnings in particular to pay off a network of promoters, including the three other arrested fraudsters. A massive fraud cryptocurrency which is far from the only one on the market. Stay alert!