- Telecommunications Giant Vodafone Leaves the Libra Association
- Group of Central Banks Assesses Developing Central Bank Digital Currencies
- South Korea Might Impose 20 Percent Tax on Cryptocurrency Profits
- Report: Terrorists Increasingly Use Crypto to Raise Funds Anonymously
- Canadian Securities Administrators Subject Crypto Exchanges to Securities Laws
If you’ve ever had the misfortune of being scammed, the first indicator is often the sudden disappearance of the actual scammers. You won’t be able to contact them. You’ll go through a period of denial, thinking that it must be a bad network or a busy day at the office. Then reality settles in and you finally accept the facts. However, the last thing you would expect is to receive a message from your scammers telling you that they are about to run away with your money.
Well, that is what happen to an Australian couple from Canberra. After getting duped out of $20,000 to fake Bitcoin investments, Nick and Josie Yeomans received a WhatsApp message telling them that the whole thing was a sham, according to Australia’s ABC News.
The couple had been investing in a company called Coinexx[dot]org which claimed to manage cryptocurrency and forex investments for its clients. However, the reality of the firm was revealed to the Yeomans’ through a blatant WhatsApp message that announced that the whole thing was a scam.
“Coinexx is a scam,” the message read. “Everything and everyone involved are the same. Don’t bother about trying to get back your money. Adam, myself, Claudia even the customer service is a scam.”
Nick found out about Coinexx through a Facebook group. He was skeptical at first but decided to invest in the company. He admits that even after he invested his money, he still half expected it to be a scam.
However, Coinexx roped him in by first giving him a return of $2,600 on an investment of just $984 in six months. Once Nick got comfortable with the company, he and his girlfriend decided to quit their jobs and live off of earnings from Coinexx. This time, Nick made a much bigger investment.
Out of nowhere, they were suddenly blocked from accessing their assets with the company. Coinexx demanded additional fees and charges for allowing them to access their money. This became just the first in a string of red flags once the Yeomans started inquiring about their money.
At this point, the couple had sold out assets and even taken out loans to pay the fees that Coienxx was demanding to regain access to the money they had invested. After begging for their money back, Coinexx sent the Yeomans the WhatsApp message and ceased all further contact.
Another Crypto Scam Out of Many
This is just another case in a pile of such cases where unsuspecting investors from all around the world put in their money into companies that promise big returns without doing anything and lose all their hard-earned savings. As regulators continue to struggle to come to grips with the reality of cryptocurrencies and continue to remain in denial about their future, innocent civilians continue to get hurt.
It seems like regulators are only capable of two extremes: either do nothing or ban everything. What we need is comprehensive, incremental legislation that protects investors from scams like these while allowing for innovation and growth in the industry.