Another Bitcoin scampany got rekt!

[cheezcarls]

Matthew Goettsche, Jobadiah Weeks, and Joseph Abel have all been charged with fraud by US District Court prosecutors regarding their cryptocurrency company, BitClub Network. The three men allegedly used the company as a Ponzi scheme to defraud investors of $722 million.

The company purported to run a Bitcoin mining pool, taking funds from investors for ‘shares’ in the mining profits. Investors’ funds were to be used to purchase mining hardware. Returns to investors were to be based on customary miner rewards and transaction fees earned.

Source link here

Well, well, well. Down goes another ponzi scam!

I remembered last year that someone sent me a message that I should join the Bitclub network. I refused.

He really insisted me that time to join because he was "paid" as promised. He wanted to help me change my life.

Yeah, but deep inside, he wanted me to get "victimized" in another Bitcoin scampany!

Why would I need to join a ponzi like that? Now that these filthy founders got charged for running a Bitcoin ponzi scam, I guess that the guy who sent me a message back then is now "crying" because of his lost money in that scampany.

I just feel sorry for those who have fell for that Bitcoin scampany back then. Lesson learned for you guys.

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[TGD]

I can't believe that on this year that most of ponzi scheme was already exposed, There is still many people that falling for that scheme and that whoooping 722M$ is an insane
amount. I'm too lazy to read the article but it's hard to believe that they still collected 722M for a cloud mining investment compared on many legit ICO run during 2018 to 2019.
What's really happening in crypto world? 

[meanwords]

I can't believe that on this year that most of ponzi scheme was already exposed, There is still many people that falling for that scheme and that whoooping 722M$ is an insane
amount. I'm too lazy to read the article but it's hard to believe that they still collected 722M for a cloud mining investment compared on many legit ICO run during 2018 to 2019.
What's really happening in crypto world? 

Don't be surprised, people will always be stupid when it comes to money because we aren't taught how to handle it properly in our school days. We really can't blame them though. They've probably met them in person to make it more believable. Most of the investors are probably new too.

[MURONDI]

fraud with the Ponzi Scheme has been around for a long time, Ponzi schemes always innovate according to the circumstances of the times, Ponzi schemes currently use crypto popularity, usually under the guise of cloud mining, I have often joined cloud mining, most end in scams.

[kotajikikox]

looks like only US government is in the act of moving against this scammers?if US can do this why not the whole world can't?
there are too many cases almost every day here that they are being victims but yet nothing happens,how i wish that all of these scammers will be punished and put behind bars so they wont victimized innocent people again and take their money just like that.

fraud with the Ponzi Scheme has been around for a long time, Ponzi schemes always innovate according to the circumstances of the times, Ponzi schemes currently use crypto popularity, usually under the guise of cloud mining, I have often joined cloud mining, most end in scams.

thats only one area and cloudmining has been derailed now,but there are other ways to scam people and in this field those scammers are experts.

[pooya87]

the worst part of the ponzi schemes is that the company that is scamming people doesn't really have to do much! they just start things up and do a little initial advertisement to get the primary victims, then their victims do the rest like a virus that infects the host and the host keeps spreading it everywhere it goes. because that is how the victim can survive himself and get his money out by infecting others.

[joniboini]

I'm too lazy to read the article but it's hard to believe that they still collected 722M for a cloud mining investment compared on many legit ICO run during 2018 to 2019.
What's really happening in crypto world? 

It's in operation since 2015, probably they got a lot of Bitcoin and then when it went crazy so they got a higher valuation than intended.

looks like only US government is in the act of moving against this scammers?if US can do this why not the whole world can't?

Maybe it's you who don't know how the world react to this. Literally, every once in a while there is news where government crackdown scammers using Bitcoin or other cryptos.

[avikz]

I can't believe that on this year that most of ponzi scheme was already exposed, There is still many people that falling for that scheme and that whoooping 722M$ is an insane
amount. I'm too lazy to read the article but it's hard to believe that they still collected 722M for a cloud mining investment compared on many legit ICO run during 2018 to 2019.
What's really happening in crypto world? 

Let me tell you what's happening with little dose of history!

Traditional ponzi is almost dead now after three big crackdowns by FBI. First crackdown was on a payment processor called Liberty Reserve which was closed down by FBI on mid 2013. Liberty Reserve was the biggest payment processor in the ponzi world where no one needs to be KYC compliant to keep thousands of dollars, so it quickly became the main source for money laundering and ponzi admins. Few years later, two biggest forums of the ponzi world namely, money makers group and Talkgold faced the similar action from FBI in August 2017 when the bitcoin market was on rise. So the paying ground of ponzi admins became even narrower because these are the two main places for ponzi promotion. So ponzi admins quickly found their next area of continuing the business which is cloud mining and ICO while the modus operandi remains same as before!

The rise of cloud mining and ICO market in 2017 was actually fueled by the former ponzi scammers and that's why more than 95% of the ICOs that were started in 2017 and 2018 turned down to dust! Because these ICO companies were never meant to bring a disruptive product in the market. They came here to siphon money out of your pocket to theirs'. The result you can see today was plotted long back with the death of traditional ponzi market!

[Youghoor]

Its so sad that there are a lot of ponzi scams in the bitcoin ecosystem. But only people with the nature of greed in the crypto space will always be victims scams seen in the bitcoin ecosystem. The greedy nature of majority of people in the crypto space will always make ponzi scheme and scams to exist in this ecosystem. People are always looking for quick ways of making money in the crypto space without understanding that cryptocurrenies are just the digital presentation of fiat currency. If the greed nature of people don't leave the crypto space, scams will always exist.

[joinfree]

Seriously i don't know how some folks get swayed by these silly tactics. I bet is greed for more, darn..a bitcoin mining pool in this day and age . Ahh, well it's good these culprits have been found and brought to be book. I hope they are able to fish all the guys that purported this crime. People should also learn some lessons out of these experiences and stop falling for these cheap schemes every now and then.

[Baby Dragon]

Seriously i don't know how some folks get swayed by these silly tactics. I bet is greed for more, darn..a bitcoin mining pool in this day and age . Ahh, well it's good these culprits have been found and brought to be book. I hope they are able to fish all the guys that purported this crime. People should also learn some lessons out of these experiences and stop falling for these cheap schemes every now and then.

Indeed, they have to suffer the consequences of their actions. Well, what can we expect these days? scammers think that everything is possible when it comes to money and that is the reason why they keep on deceiving people because they wanted to take advantage of them particularly on those people who does not have enough understanding when it comes to these things. They will hide their true intention by making you believe on their words and promises. It is the reason why many of us have some trust issues and we don't have to feel bad about it because of our past experiences, I agree with you that they should learn from it to avoid doing the same mistakes. It will guide them and make them wiser, only if they open their mind for new learning and experiences.

[Juggy777]

Matthew Goettsche, Jobadiah Weeks, and Joseph Abel have all been charged with fraud by US District Court prosecutors regarding their cryptocurrency company, BitClub Network. The three men allegedly used the company as a Ponzi scheme to defraud investors of $722 million.

The company purported to run a Bitcoin mining pool, taking funds from investors for ‘shares’ in the mining profits. Investors’ funds were to be used to purchase mining hardware. Returns to investors were to be based on customary miner rewards and transaction fees earned.

Source link here

Well, well, well. Down goes another ponzi scam!

I remembered last year that someone sent me a message that I should join the Bitclub network. I refused.

He really insisted me that time to join because he was "paid" as promised. He wanted to help me change my life.

Yeah, but deep inside, he wanted me to get "victimized" in another Bitcoin scampany!

Why would I need to join a ponzi like that? Now that these filthy founders got charged for running a Bitcoin ponzi scam, I guess that the guy who sent me a message back then is now "crying" because of his lost money in that scampany.

I just feel sorry for those who have fell for that Bitcoin scampany back then. Lesson learned for you guys.

These type of scams are the updated version of HYIP schemes, where the company would offer high amount of interest and initially pay it’s investors and then suddenly disappear one day along with their funds. After loosing in these type of schemes I have made sure never to invest in online schemes, and I’m glad you too used your mind and stayed away from such Ponzi schemes.

The biggest problem with all Ponzi schemes is our greed, we let our greed take over our mind and we end up loosing our funds hence I would suggest you all to not be greedy, and avoid any scheme that provides interest or doubles your money unless it’s coming from a reputed brand.

[crwth]

Is it close to these on the links? I remember meeting someone that was scammed by something called Airbit Club.

https://bitcointalk.org/index.php?topic=3351894.20
https://bitcointalk.org/index.php?topic=2135986.0

I don't know why people still get scammed and putting hard-earned money towards those kinds of things. They didn't even do their own research with that. I think almost everyone who has experienced something positive with regards to profiting or investing, they automatically think it's legit already, but the truth is, it's just a Ponzi scheme.

It's good that you didn't get scammed, OP. I hope no one would continue to be scammed to these kinds of tactics.

[The Sceptical Chymist]

looks like only US government is in the act of moving against this scammers?if US can do this why not the whole world can't?

I don't know why this seems to be the case, but I'm glad this scam got busted.  This was a sort of cloud mining scheme, wasn't it?  This is exactly what I think happens when I hear about how shady cloud mining is--you pay money for supposed hashing power, but there's no mining going on, and the company pays you out of new investors' money (if you even get paid at all).

US prosecutors and laws tend to be tough when it comes to scams.  As to why we haven't seen a lot more of this, it's probably because crypto scams go under-reported for whatever reason.  And I bet part of that is because people don't want law enforcement to know that they're into bitcoin.  We all know how much of a bad rap it gets.

[Yaunfitda]

I don't know why people still get scammed and putting hard-earned money towards those kinds of things. They didn't even do their own research with that. I think almost everyone who has experienced something positive with regards to profiting or investing, they automatically think it's legit already, but the truth is, it's just a Ponzi scheme.

Because sucker are born every minute in crypto sphere. They thought that crypto is a easy way to get rich, so they invest their harded earn money.

Obviously, US is clamping down on this Ponzi scheme, fake and scammy ICO's, it's good to see them doing this, but it will take a lot of time to really busted those criminals because they can really hide their guise and before everyone notice something fishy, they're gone. At least in this case, there are names and people behind can be prosecuted.

[nydiacaskey01]

I can't believe that on this year that most of ponzi scheme was already exposed, There is still many people that falling for that scheme and that whoooping 722M$ is an insane
amount. I'm too lazy to read the article but it's hard to believe that they still collected 722M for a cloud mining investment compared on many legit ICO run during 2018 to 2019.
What's really happening in crypto world? 

Actually spme of them knows that what they are joining is a scam. They will just take advantage of the site while it is still paying, they will invite more new members some who also knew that it is a scam and some are just newbies. So bottom line, they allowed it to happen to themselves. The clue that its a scam is all over the place. No need to be a rocket scientist.

[CryptoBry]

Yeah, but deep inside, he wanted me to get "victimized" in another Bitcoin scampany! Why would I need to join a ponzi like that? Now that these filthy founders got charged for running a Bitcoin ponzi scam, I guess that the guy who sent me a message back then is now "crying" because of his lost money in that scampany.  I just feel sorry for those who have fell for that Bitcoin scampany back then. Lesson learned for you guys.

There are so many people who are so willing to sacrifice their own credibility for the sake of getting referral commissions and in my view big promoters of a scam should be getting their own fair share of some punishment. This is not the first that a popular ponzi scheme has been busted but people are not actually learning the big lessons of the past, and so we should be expecting that another creative pyramiding program will soon taking over the market left by those who are already dead. No wonder many people equal cryptocurrency with scams, and we could not blame them for that mindset and labeling because there are really many scam artists exploiting this fledgling industry.

[BitcoinsGreat]

I can't believe that on this year that most of ponzi scheme was already exposed, There is still many people that falling for that scheme and that whoooping 722M$ is an insane
amount. I'm too lazy to read the article but it's hard to believe that they still collected 722M for a cloud mining investment compared on many legit ICO run during 2018 to 2019.
What's really happening in crypto world? 

Evil people are always there to exploit the situation or play with the emotions of the people. Since they are many people in the crypto world who are looking to invest their bitcoins somewhere, scams like these are easy to plan and implement. Also, these are only scams which are bought in public, there are many more scams which are going on individual level and we never know about them. 

[ChuckBuck]

I can't believe that on this year that most of ponzi scheme was already exposed, There is still many people that falling for that scheme and that whoooping 722M$ is an insane
amount. I'm too lazy to read the article but it's hard to believe that they still collected 722M for a cloud mining investment compared on many legit ICO run during 2018 to 2019.
What's really happening in crypto world?  

I think that is the result of greed. We often look at huge profits and forget the consequences that we will suffer. In fact, profits always come with risks, if we are not alert, we will be pull into the scams as above. It's crazy when I see the sum of $ 722 million. The crooks really succeed until they are caught. Fortunately, they were discovered, we should consider it as a lesson.

[bitcampaign]

BitConnect, now bitclub network, why does it all start with the word Bit is a ponzi scheme site, I'm sure about the bitclub network I happen to be friends with someone in Asia, he offers me about the mining business on the bitclub network but I'm not sure about their mining system and the advantage here, finally I decided to block my friendship, as far as I know their base in Asia is very large, hoping that there are no more ponzi schemes that use bitcoin, usually they always make fun of bitcoin without business ponzi schemes bitcoin prices do not go up, so words say stupid people talk

[Sanugarid]

I can't believe that on this year that most of ponzi scheme was already exposed, There is still many people that falling for that scheme and that whoooping 722M$ is an insane
amount. I'm too lazy to read the article but it's hard to believe that they still collected 722M for a cloud mining investment compared on many legit ICO run during 2018 to 2019.
What's really happening in crypto world? 

Don't be surprised, people will always be stupid when it comes to money because we aren't taught how to handle it properly in our school days. We really can't blame them though. They've probably met them in person to make it more believable. Most of the investors are probably new too.

That's why we need more strategies and practice for more safety handling of money. Money is very valuable and important. Most of the people are dying just to have money. It is so powerful that it can control someone's action and personality.

So those scammers are doing bad thing just to earn money.

Nothing is impossible with those people, imagine 722M is a huge amount of money. Probably they are so excited of the outcome so they trust easily.

Excitement can also be the cause of loss, so be patient and learn more about money.

[Ailmand]

There had been a lot of mining ponzi scheme and still a lot of people are getting scammed through thia scheme. I hope people will learn how to do their research before investing in any means. If it too good to be true, have a doubt if it is legitimate. I hope more and more of this scam investment aite or company will close down.

[SummerBliss]

Matthew Goettsche, Jobadiah Weeks, and Joseph Abel have all been charged with fraud by US District Court prosecutors regarding their cryptocurrency company, BitClub Network. The three men allegedly used the company as a Ponzi scheme to defraud investors of $722 million.

The company purported to run a Bitcoin mining pool, taking funds from investors for ‘shares’ in the mining profits. Investors’ funds were to be used to purchase mining hardware. Returns to investors were to be based on customary miner rewards and transaction fees earned.

Source link here

Well, well, well. Down goes another ponzi scam!

I remembered last year that someone sent me a message that I should join the Bitclub network. I refused.

He really insisted me that time to join because he was "paid" as promised. He wanted to help me change my life.

Yeah, but deep inside, he wanted me to get "victimized" in another Bitcoin scampany!

Why would I need to join a ponzi like that? Now that these filthy founders got charged for running a Bitcoin ponzi scam, I guess that the guy who sent me a message back then is now "crying" because of his lost money in that scampany.

I just feel sorry for those who have fell for that Bitcoin scampany back then. Lesson learned for you guys.

When will people realize that all the cloud mining pools are nothing but scam. When they don't seem to get the desired results they just flee away with the investor's money. We have seen enough examples of such things. But I liked that new acronym "Scampany" lol. This should be used for any ponzi promoting company. Moreover the way these networks persuade people to join them makes them even more dubious.

[andycarrol]

I can't believe that on this year that most of ponzi scheme was already exposed, There is still many people that falling for that scheme and that whoooping 722M$ is an insane
amount. I'm too lazy to read the article but it's hard to believe that they still collected 722M for a cloud mining investment compared on many legit ICO run during 2018 to 2019.
What's really happening in crypto world? 

Don't be surprised, people will always be stupid when it comes to money because we aren't taught how to handle it properly in our school days. We really can't blame them though. They've probably met them in person to make it more believable. Most of the investors are probably new too.

damn I think after a few years ago lost and not heard again in this forum about Ponzi, but?
I think those who are lazy and do not have the expertise in growing money will be easily trapped by the Ponzi scheme because for them it looks easy to grow money just by placing it there.

[airdnasxela]

Ponzi scheme has been around since before, it's just a good thing that the US Government is taking actions on  things like this. They're arresting ponzi. It's good for cryptocurrency users, the government is preventing them to scam more people. Though it's a pity for those who already got scammed... At least they were able to get arrested. We can't really stop people like this, unless they got busted. That's why should also learn to avoid and not to fall with schemes.

[Reatim]

seems like there are more active movement against this scammers huh?this thread from Africa is contributing good deeds to help victims and to stop scamming in crypto world in their continent

https://bitcointalk.org/index.php?topic=5208657.0

i wish to see many of this kind in following days because scamming is very alarming and victims are losing their hard earned money just because they trust others to have even small profits.

[iram3130]

The problem with crypto ponzi scheme is that there is a higher chance in getting away, we have seen at least 4-5 multi million ponzi schemes this year from different countries and these things are getting crazy every year. If you see something on investing and making referrals then it is definitely a ponzi scheme in the making. Never invest in such things.

[ragavancoin]

This is not first ponzi scam in crypto world there are so many ponzi projects are still active and more will come in the future also we can't stop but we can avoid that ponzi projects with our knowledge before going to invest and I know that the pain if we lose our hard money in ponzi scam because when I lose my first investment in ponzi.


Really you are lucky man not invest in that ponzi scam 😀😀😀😀

[vintages]

Joining Bitcoin mining pools: how much I hated this method of scamming.
Funny enough they don't call it ponzi scheme but mining pools. If people that joined it where not blind enough, they should have seen that they pay old members with the money that new members bring in. There is no mining equipment in any where doing those work. It's always a scam.
I hope those that was scammed learnt their lesson, and help spread the word.

[xZork]

These ponzi projects hit investors' FOMO mentality. Many people have a lot of money but no knowledge of cryptocurrencies, they can easily trust a project when introduced by friends or relatives.
The fraudulent ponzi projects only need to pay for a few people, and then these people will spread the word about the project in their community.
Phishing never disappears in life in general and in the cryptocurrency market in particular, so people should be cautious before making investment decisions.

[DreamStage]

The domain website is still up even tought they got arrested.
Do not know if that information is really legitm or just a fuzz to shut it down anymore.

But if that is really a possibility and a happening i am glad for other scam pronzi company to become shutdown.
As there will be more people getting alerted on such type of scams as well as for the judicial departments.

[boyptc]

I pity the victims here. They never learn from the experience of others telling that never join ponzi or cloud mining investment schemes.

How many times did we ever warned them about it? but only few listened.

[hermawan9416]

No wonder scammers will always be in the crypto industry because there is a lot of money here.

[Eugenar]

I pity the victims here. They never learn from the experience of others telling that never join ponzi or cloud mining investment schemes.

How many times did we ever warned them about it? but only few listened.

I should not be racist here, but I do really think that if we are to attract people to invest in cryptocurrency, we should prioritize young and those that are already used to computers and internet. Because for me, inviting old people or those that aren't really a into computers but with just the mindset of earning profit will just probably end up losing their money to frauds and scams. In this regard, I do really see that young people have the instinct of being observant and aware of their surroundings.

[nicecrypto]

Wow! $722 million is huge some of money this guys have manage to squeeze out of the pocket of innocent people who thought they are investing in a project that can uplift them financially, this is the kind of behavior that makes people to have negative thoughts about crypto,  what terrible thing to do.

[boyptc]

I pity the victims here. They never learn from the experience of others telling that never join ponzi or cloud mining investment schemes.

How many times did we ever warned them about it? but only few listened.

I should not be racist here, but I do really think that if we are to attract people to invest in cryptocurrency, we should prioritize young and those that are already used to computers and internet. Because for me, inviting old people or those that aren't really a into computers but with just the mindset of earning profit will just probably end up losing their money to frauds and scams. In this regard, I do really see that young people have the instinct of being observant and aware of their surroundings.

There are young folks that can also be fooled by these scammers. It's not about the age but it's about the literacy and awareness that they lack. Everyone can be a victim of them but as for us who have experienced it before and listening to the advice of the people who've been in crypto earlier made us flee from those.

Young guys have less experience so they can also be a target of these scammers.

[finaleshot2016]

I pity the victims here. They never learn from the experience of others telling that never join ponzi or cloud mining investment schemes.

How many times did we ever warned them about it? but only few listened.

I should not be racist here, but I do really think that if we are to attract people to invest in cryptocurrency, we should prioritize young and those that are already used to computers and internet. Because for me, inviting old people or those that aren't really a into computers but with just the mindset of earning profit will just probably end up losing their money to frauds and scams. In this regard, I do really see that young people have the instinct of being observant and aware of their surroundings.

There are young folks that can also be fooled by these scammers. It's not about the age but it's about the literacy and awareness that they lack. Everyone can be a victim of them but as for us who have experienced it before and listening to the advice of the people who've been in crypto earlier made us flee from those.

Young guys have less experience so they can also be a target of these scammers.

But most people who are being scammed are the old ones who want to find good profit. I think it's normal for young guys for being scammed since they're on the stage of learnings and most of them are afraid to try things since they're new to technology.

The old ones are often the target of these scammers because they knew that those people have money to be scammed. They will just take advantage of those people who lacks about bitcoin that's why it's better to have an additional course for the new generations to study modern technology. It'll make them aware about it. 

[Mahanton]

I pity the victims here. They never learn from the experience of others telling that never join ponzi or cloud mining investment schemes.

How many times did we ever warned them about it? but only few listened.

I should not be racist here, but I do really think that if we are to attract people to invest in cryptocurrency, we should prioritize young and those that are already used to computers and internet. Because for me, inviting old people or those that aren't really a into computers but with just the mindset of earning profit will just probably end up losing their money to frauds and scams. In this regard, I do really see that young people have the instinct of being observant and aware of their surroundings.

There are young folks that can also be fooled by these scammers. It's not about the age but it's about the literacy and awareness that they lack. Everyone can be a victim of them but as for us who have experienced it before and listening to the advice of the people who've been in crypto earlier made us flee from those.

Young guys have less experience so they can also be a target of these scammers.

But most people who are being scammed are the old ones who want to find good profit. I think it's normal for young guys for being scammed since they're on the stage of learnings and most of them are afraid to try things since they're new to technology.

The old ones are often the target of these scammers because they knew that those people have money to be scammed. They will just take advantage of those people who lacks about bitcoin that's why it's better to have an additional course for the new generations to study modern technology. It'll make them aware about it. 

Integrating it on casual school curriculum then it would still takes time to have some consideration because it will all vary in talks of adoption so we cant still depend on it.
I  can say that its all random when we do talk about age of people who got victimized.I can say that young minds is much more prone to this yet we know that
they are adventurous enough to try up things out of curiosity and been part of a newbie then that carelessness thing is part of it which would result to these kind of common scammed outcomes.

[ene1980]

Why would I need to join a ponzi like that? Now that these filthy founders got charged for running a Bitcoin ponzi scam, I guess that the guy who sent me a message back then is now "crying" because of his lost money in that scampany.

I just feel sorry for those who have fell for that Bitcoin scampany back then. Lesson learned for you guys.

The amount of time they were able to run the scam is mind boggling and no one was able to expose them completely, when ever there was an article against them they would come out and throw some responses and i bet there are many victims in this forum and they are not coming forward right now as i have seen some members vouching for them in the past. Hopefully they get sentenced for life and hopefully all their loot confiscated.

[Slow death]

These ponzi schemes will always continue to exist because they promise what people want most: "make a lot of money in a short time." When a person buys 1 btc, holds it for a long time, the price goes up a lot and then it goes down a lot and that person realizes that the time has passed a lot but the price is still the same as she bought it, and then she looks at an ad that says " invest X bitcoins today and in 30 days you will get a 2X return ". this person will think" if I invest 1 BTC in 30 days I will have 2 BTC, then I will invest 1 BTC again and I will have 2 BTC + 1 BTC of first investment profit I will get 3 BTC in 60 days "

[Strongkored]

I even thought that BitClub had been closed a few years before, it was quite surprising that they could last long enough for about 5 years which was why they had earned so much money from this ponzi scheme.

If anyone asks why there are still many who can be fooled, the reason not only because they want to get money quickly and a lot but there are many other factors that influence it, these things I experienced before. When you have never experienced with this type of fraud you will be easy to believe and be fooled, and also When the person who is invited to join is someone you trust it can also be a factor.
Cannot blame the victims, but the culprits are to blame and get punished.

[wildan88]

These ponzi schemes will always continue to exist because they promise what people want most: "make a lot of money in a short time." When a person buys 1 btc, holds it for a long time, the price goes up a lot and then it goes down a lot and that person realizes that the time has passed a lot but the price is still the same as she bought it, and then she looks at an ad that says " invest X bitcoins today and in 30 days you will get a 2X return ". this person will think" if I invest 1 BTC in 30 days I will have 2 BTC, then I will invest 1 BTC again and I will have 2 BTC + 1 BTC of first investment profit I will get 3 BTC in 60 days "

I can't believe there are still many people who think instant, they want to get a lot of money in a short time, isn't it better to gamble? rather than being tricked by someone else?
it seems they are eyeing new users because the old users already knew how booming was about Ponzi in the past few years. finally, everyone who participated in the Ponzi was banned on this forum. In 2020, there should be no more people who believe in the Ponzi system.

[Eugenar]

Ponzi scheme has been around since before, it's just a good thing that the US Government is taking actions on  things like this. They're arresting ponzi. It's good for cryptocurrency users, the government is preventing them to scam more people. Though it's a pity for those who already got scammed... At least they were able to get arrested. We can't really stop people like this, unless they got busted. That's why should also learn to avoid and not to fall with schemes.

Actually there is a way we could possibly stop them from creating some scam projects that mainly focuses on getting funds from people. One thing to consider is to utilize whenever there is a report button when the project or site is already showing suspicious scam marks that many newbies couldn't see at their first glance. In a wider umbrella, all the possible ways we could stop them from their operation could be considered. But the best way is to start with our selves first. We know the risk and we know the consequences, right from the start, no one could be scammed if in the first place they didn't join or participate to the project.

[jostorres]

Well, it is not really his fault. He never saw it coming , he thought it was legit. All these scam projects, they never show signs at first that they are scammers, rather they keep paying investors to seem legit and draw more investors who are likely to fall victim.

If eventually their Network happens to grow and they have gotten a lot of investors, that is when they will end the project and escape with the big money that the investors have raised. Well, luckily these ones got busted, though I am not sure if the investors are really going to get their money back or not. Let this serve as a lesson for others.

[tartibaya]

Frauds are not difficult to understand. But at first they don't show big signs. There are projects to prevent fraud. Funny thing is, these projects can be scammers. What a painful painting. Bitcoin makes people dream a lot. The sense of making money can lead to mistakes.

[kotik085]

Of course, if they also ask to become a member. Fraudsters also take advantage of this, that gullible people go on provocation. I was repeatedly shown in telegram channels, and even wrote my bitcoin address, but did not agree. I did it right and the funds remained intact. One must be vigilant and not make contact.

[californiaquail]

BitConnect, now bitclub network, why does it all start with the word Bit is a ponzi scheme site, I'm sure about the bitclub network I happen to be friends with someone in Asia, he offers me about the mining business on the bitclub network but I'm not sure about their mining system and the advantage here, finally I decided to block my friendship, as far as I know their base in Asia is very large, hoping that there are no more ponzi schemes that use bitcoin, usually they always make fun of bitcoin without business ponzi schemes bitcoin prices do not go up, so words say stupid people talk

Reminds me how every internet company during the dot.com bubble called itself Cyber something or Net whatever.

Keep in mind that all of these companies (HYIP, Ponzi and whatnot) are using predefined templates, on-the-shelf domain names and incorporation status,

Just look at who does this kind of thing, and you'll have an hint of why these scams are so shitty and blatantly obvious.

We're not talking about fully-anticipated exit scams orchestrated by criminal masterminds capable of waiting years before pulling-off...

[sehoon]

Good thing they caught them and not being able to use 100% of their scammed money. I hate this kind of people ruining the crypto space. But this still, there are still people who believed in them and I just hope they get their money back. I want these people in jail forever if they can't repay those people.

[pakhitheboss]

Matthew Goettsche, Jobadiah Weeks, and Joseph Abel have all been charged with fraud by US District Court prosecutors regarding their cryptocurrency company, BitClub Network. The three men allegedly used the company as a Ponzi scheme to defraud investors of $722 million.

The company purported to run a Bitcoin mining pool, taking funds from investors for ‘shares’ in the mining profits. Investors’ funds were to be used to purchase mining hardware. Returns to investors were to be based on customary miner rewards and transaction fees earned.

Source link here

Well, well, well. Down goes another ponzi scam!

I remembered last year that someone sent me a message that I should join the Bitclub network. I refused.

He really insisted me that time to join because he was "paid" as promised. He wanted to help me change my life.

Yeah, but deep inside, he wanted me to get "victimized" in another Bitcoin scampany!

Why would I need to join a ponzi like that? Now that these filthy founders got charged for running a Bitcoin ponzi scam, I guess that the guy who sent me a message back then is now "crying" because of his lost money in that scampany.

I just feel sorry for those who have fell for that Bitcoin scampany back then. Lesson learned for you guys.

$722 million that is a big amount. How on earth were they able to scam in such a large scale. Why the hell investors do not check before investing in such schemes.?
It is evident with the amount that a large number of investors got scammed.

[henrybek3]

This market is full of scammers. Pity people are victims. Before investing in a project, it is necessary to do very good research. It's hard to get the money back after they've been defrauded. When I first entered this market, I was scammed a little bit. But later I searched and learned. I do not invest directly with anyone's ideas. I always do my own research.
If prices rise too high, they fall back by nature. Keep these facts in mind. These are my thoughts.

[gentlemand]

I remember some FIRE Youtuber interviewing one of the principals of this 2-3 years back as if it were some sort of legitimate income stream.

I shouted 'ponzi' in the comments and funnily enough the comment is no longer there on checking it. Ah well.