Ponzi Company Disappears with 1,000 BTC
CryptoDouble, a newly launched company that promised to double cryptocurrency investments within 100 hours of deposit, recently disappeared with customers' 1,000 BTC - leaving behind nothing but an offline website. From what we could gather from the leftover material, CryptoDouble claimed itself to be a brainchild of some really serious "investors" that were able to return twice the amount deposited. An excerpt from their dead website read: "[We] are the group of professional traders and skilled analysts with valuable experience in the sphere of cryptocurrency. All transactions in the....
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Reports are emerging from Hong Kong that local bitcoin exchange MyCoin has shut its doors, taking with it possibly as much as HK$3bn ($386.9m) in investor funds. If true, the supposed losses are a staggering amount, although this estimate is based on the company's own earlier claims that it served 3,000 clients who had invested HK$1m ($129,000) each. For perspective, bitcoin's entire market cap today stands at around USD$3bn. The issue came to light on Friday when about 30 people claiming to be victims of the company's actions petitioned a local member of the Legislative Council, Leung....
This particular Ponzi Scheme in Vietnam will give Bitcoin a bad reputation in the country. Cryptocurrency is not regulated by the banks, and the local government is not too keen on Bitcoin either. Ever since the inception of Bitcoin, there have been individuals and companies trying to discredit cryptocurrency. Some of them even go as far as setting up deliberate Ponzi Schemes to defraud Bitcoin investors. Such a scheme seems to be on the brink of collapse in Vietnam. Hundreds of people have been burned by this pyramid scheme, which seemed to rely on an MLM structure. It is not the first....
Bitcoin scams are back. CryptoDouble, a website founded on the promise of doubling its users' deposits within 100 hours, ceased all its operations. At least 2233 BTC (about $500,000) have been cashed out on BTC-E, leaving thousands of customers out of pocket. The service gained a significant popularity on Bitcointalk, where customers first testified about the service and its supposed effectiveness. Despite several warnings from advanced Bitcoin users andprevious Bitcoin Ponzi scams, a significant number of users have been attracted by the website's promises and its investment....
In another twist to the Mirror Trading International (MTI) bitcoin Ponzi scam, the blockchain intelligence firm Whitestream says bitcoins from wallets associated with the company are being sent to Wasabi privacy mixers. According to Whitestream’s update, this pivot to mixers suggests that operators of the Ponzi are trying to obfuscate the movement of the bitcoins. Conspiracy to Hide Funds The reports of MTI bitcoins going to mixers follow the recent disappearance of the company’s CEO, Johann Steynberg late last year. This also comes after a South African court granted a....
Ponzi scheme: A fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Many of the under-informed, the under-educated, and the under-control masses have lobbed this parting shot at Bitcoin over the years. People tend to fear things that they don't understand, and will hide behind that fear with blind attacks that sound right, but are just as ignorant, if not more so. Bitcoin clearly does not fall into the definition of a "Ponzi....