Ponzi Crypto Scheme - STA fraud Story

Every investment carries a certain level of risk, which can be categorized as high, medium, or low risk. In low-risk investments, returns are typically assured, and the money is often placed in instruments like fixed deposits in banks or government securities and bonds. However, the returns are relatively modest because of the low level of risk associated with these investments.

Conversely, investment options such as the stock market carry a higher level of risk but also offer the potential for higher returns. Engaging in stock market investments requires a good understanding of the domain and thorough research before committing capital, as there is a risk of losing one's entire investment. Similarly, the cryptocurrency space is considered high-risk, and conducting comprehensive research is imperative before investing in any project. Unfortunately, fraud and Ponzi schemes are not uncommon in the world of cryptocurrency.

Today, I'd like to share an incident that occurred in India, where individuals were promised the opportunity to multiply their investments in the name of cryptocurrency and blockchain. Approximately 1 trillion rupees were collected from people with the assurance of substantial returns, affecting more than 200,000 individuals in this fraudulent scheme.

A company name Solar Techno Alliance claims to be 'one stop' Solar Technologies service that enables users to order anything they like from the nearest farmers in shortest amount of time using blockchain technology. This is the wording I found on the main page of the company website.

The company claimed to be a gateway where anyone can use to buy any service using the crypto currency. The blockchain words were used but the company does not has any blockchain project but yes then do have a token named STA token.

The scam started when a Youtuber claimed to be a financial and investment adviser start publishing and promoting the videos about a company names the Solar Techno Alliance. In his videos he talked bout how to make money easily, which token is best and will be to moon where to invest for 10 to 15 percentage return etc etc. Those video attract the audiences which is looking for the easy money techniques. After building good fan base they started the next phase of their plan which was to launch his own crypto token, they names it STA (solar Technology Alliance token). They were already had a audience which was looking for easy money technique and they make them trust on token through their video content. They claimed that the token is different form other token or cryptocurrency, they claimed and promised that the STA token will be currency that will be used by all solar and green energy companies in the future All the transection in those companies will be with using the STA token.

In the starting they were able to attract some of the investors but they realize this model will not work. They changes their and convert tit into MLM (Multi Level Marketing) or pyramid scheme. In this scheme the ask the existing users to joined two new members and they will get the incentive in the form of the percentage share of the investment done by the two persons below him. In this way they start promoting the project by using the initial inventors. They again promised and shown the investors bi money dreams. They were able to gain the popularity again but many people start doubting that form were they will generate the money. Now the main concern for the STA was to create trust amount the investors because their was already many people in the market were doubting on the project if it is legit.

So create the trust among the investors and the new audience they used another way, they involve some of the big name form film industry into project. The involvement was not direct but indirect. They organized a big event and called a person form the film industry to promote the project. By seeing the big faces form film industry people start trusting on the project. In this way they attract more peoples and good investment for the project. This is not clear if the person form the film industry was known the truth of the project or not. As per the news they approached the celebrity and him to join in a function where they want to reward the top performers.

The Criminal Investigation Department get some tip and they start investing and revealed that the investment project was a fraud scheme and they looted 200,000 individuals with1 trillion rupees.

Conclusion

Then moral of the story is always do the research before investing. The cheaters come up with new ideas to loot the people. In the crypto world is already targeted and blamed to be fraud scheme. Any bad news creates the negative effect and good for the image of crypto world. The investor must be more vigilant when choosing the investment project.

What are your views let me know in comment section.

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