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A user on Reddit recently shared his experience with Coinjer, calling it an elaborate cryptocurrency scam that has recently surfaced on the internet.
The user, @m3l0n, shared that he received a message on Discord, a platform for video gaming communities, advertising that users could win 0.25 Bitcoin, almost equivalent of $1,830 based on the current Bitcoin price. The requirement for receiving the 0.25 BTC was to be a member of one of the cryptocurrency affiliate discords run by the network, and an article regarding the giveaway was also attached.
The user stated that this fraudulent company’s website seemed professional and so did the user agreement and terms, and the even the site’s code. The users would be sent a promotional code through through which they can add 0.25 BTC to their account.
The website included all the necessary details about the company, including professional photographs and names of the founders with seemingly legitimate addresses. The 0.25 BTC that the user would receive could be exchanged for another cryptocurrency or fiat money.
However, as the Reddit post further elaborates, despite the supposedly legitimate digital space of the company there were some red flags that stood out and made the author suspicious.
For example, the registration number on the domain name registrar Namecheap was very recent, dating back to three months; the people mentioned as founders were not found on LinkedIn; and the company itself, Coinjer, was not registered in the United Kingdom. The user also thought that the passwords and security checks were too basic and if the scheme was legitimate, anybody could create multiple accounts and get away with large sums of money. And finally, the company required a deposit first before any withdrawal could be made.
The Crypto Scam Asks to Deposit More Bitcoin Before Withdrawal Is Possible
Another Reddit user, @ShockTohp, posted on the ‘CryptoCurrency’ subreddit and asked what is Coinjer planning to accomplish with the scam. He asked if the cryptocurrency scam is trying to get as many people possible to try transferring funds into the scammers’ wallets to gain more Bitcoin themselves.
One of the answers that the post received surmised that when victims make an account and are supposedly awarded the 0.25 BTC, they will be told that they can not withdraw the money below a certain amount, for example 0.30 BTC. Hence, they will be asked to deposit more BTC into the account in order to make the withdrawal possible and after sending in more BTC, the website will display error messages and make claims like the transaction has been lost or held and ask for more BTC to solve the issue.