2020's Biggest Crypto Scam
source
According to the blockchain firm Chainanalysis they named MTI as it's biggest 2020 scam artist. There are still too many happening in crypto land and these need to be sorted before mass adoption. Severe penalties and punishments need to be dished out and no country should be a safe haven.
source
Mirror Trading International has been named as the biggest crypto scandal for last year due to the size of the fraud. Considering most of the deposits were in Bitcoin and what the price has done since the reported $589 million could be a whole lot more in dollar terms.
MTI promised investors a minimum of 0.5% interest daily due to their superior AI use of trading bots. This equates to around a 450% return per annum. This would attract the greedy and needy unfortunately sucking them in and this was easy money. When will people learn that if it sounds too good to be true it most likely is a scam.
This scam was not as bad as 2019's with the Plus Token which accumulated over $3 Billion in crypto value. This was mainly done in Asia with the Chinese police having arrested more than 109 people who were allegedly involved. Be curious to see if and what happened to them.
The latest twist with Mirror Trading International is the authorities have now said anyone who made a profit has to now pay this back. They broke the law by investing in something that was illegal and is a crime to profit from this Ponzi scheme. According to the South African Common Law the liquidators have every right to any profit made.
This may be an expensive process chasing after individuals but could be paid for by the creditors waiting to be paid out. There is no set time and it may be better for the investors to come forward and broker a deal first. I never knew this was possible and is a bit of a bummer if you made money and got out in time before they did a runner. The main person behind this scam is reportedly hiding in Panama and why don't the authorities just go and fetch him to face the music.
I have seen this type of thing happening before when even people who know it is a scam get involved very early making money and getting out. Very often these people help lure others in so there money is secure as these are all Ponzi schemes reliant on new investors. This is good that these individuals will be forced to pay back their illegal earnings.
Another thought is that wallets of known scams should be highlighted by exchanges so funds are stopped from moving. Limiting access to protect users may be seen as censoring, but this is also a form of protection so quite the opposite.
Posted Using LeoFinance Beta
Dang, that is horrible. Imagine being just some general investor and now you find out you have to pay all of that money back. I guess it follows in line with "if it seems too good to be true..." You should know it is.
Posted Using LeoFinance Beta
I think most of the ones that benefitted knew it was a scam and were playing the scam. This has crossed my thoughts before as if you get in very early and only make for 6 months you would do very well.
Posted Using LeoFinance Beta
Yeah, for sure. They were probably pretty sure what they were getting into. I am sure there may have a been a couple that just got lucky...
Posted Using LeoFinance Beta
While I do feel for the people who got burned they absolutely deserved to lose their money for not doing due diligence! People were warning in Facebook groups, hello peter and my broadband
There were also these scammy crypto coaches running ads in Yourube and then using a MTI ref link and I saw many people punting the service on their own and when I confronted them they told me to jog on
So no sympathy from me
I agree. I warned many and they never listened as they thought they knew better.
Posted Using LeoFinance Beta
This is the response I got trying to protect readers from this obvious looking scam.
I find it funny that genuine projects like Hive have also been called a scam by those that have no clue what they are obviously talking about. I think Hive is that good and the opportunities are there for those that are committed and prepared to work and only those that fail though lack of effort slate it.
Posted Using LeoFinance Beta
people need to learn somehow if they don't listen to their friends, they don't do their own research then that's their fate
Posted Using LeoFinance Beta