Cryptocurrency scam example 1 - Bitcoin version of blockchain rat meeting/funding disk

The Cryptocurrency Version of the Rat Club, the Funding Disk

The following are cases that occurred in my country and the fraud suspect has been convicted of aggravated fraud

“Defendants Lin Huawei and Shi Kailun jointly operate a bitcoin platform that is bound to bubble in the short term on the Internet. All profits of the platform come from subsequent investors. The overall investment model is only beneficial to the operators and initial participants, and subsequent investors are bound to All the money was lost, and the defendants Lin Huawei and Shi Kailun used this to earn bitcoins in the name of commissions, which should be aggravated fraud by using fraud. The reasons are as follows: 1. Defendants Lin Huawei and Shi Kailun's bitcoin website external announcement rules are in the first order Investors who invest 1 bitcoin first (hereinafter referred to as the first round of investors), and when someone subsequently invests 3 bitcoins (hereinafter referred to as the second round of investors), the first round of investors can get 2.5 bitcoins to appear. ... Defendants Lin Huawei and Shi Kailun jointly extracted 0.16 bitcoins as platform revenue, defendant Lin Huawei could share 0.11 bitcoins, and defendant Shi Kailun would share 0.05 bitcoins.”

Criminal Judgment No. 83 of the 107 Years of the Taiwan High Court

This approach is that the reason why investors can make a profit in each round depends on whether the investors in the next round invested more than 3 times the bitcoin. For example, when investors in the first round invested 10 bitcoins, investors in the second round invested 30 bitcoins, and investors in the third round invested 90 bitcoins, both the first and second rounds of investors can Get 2.5 times of their investment amount to play, whether the third-round investors can make a profit depends on whether the fourth-round investors can continue to participate in the game.

If investors in the fourth round don’t have the means to invest more than 3x Bitcoin, then soon, the overall economic model will not be sustainable.

This is a traditional rat meeting. The purpose is to cut leeks and deceive the investors behind. The rat will keep claiming the profit multiples of early participants to attract investors to participate in the next round. It is the operators and the earliest investors who ultimately profit.

The business model mentioned above will burst after the fourth day of operation, and the newly added investors are far from enough to supply the profits of the initial investors. Then the operators began to transfer the bitcoins and commissions they got, and they got huge sums of money. But fortunately, the operator did not adopt anonymity or a decentralized wallet at the beginning, but used an exchange that has conducted KYC to conduct transactions, and the prosecutor can follow the line to arrest fraudsters.

The must-know way to protect yourself in the cryptocurrency field

With the progress of cryptocurrency operations, there are many projects that use decentralized wallets to operate similar rat meetings, attracting unsuspecting investors to transfer their money to the decentralized wallets, and eventually the operators run away, and the investors lose their capital. return.

As long as the decentralized wallet is used, there is no real-name system, no KYC, and no unified country or force will regulate the decentralized wallet. Therefore, the fraudster can happily enjoy the fruits of his fraud, and he cannot be brought to justice by calling the police, disclosing the wallet address, etc.

Therefore, please be careful when you receive similar private messages and advertisements. Similar business models are all scams that will bubble at any time. When you are very lucky in cryptocurrency, you can catch gangsters, but most of the time, even if it is obviously in line with our country Article 339 of the Criminal Law constitutes the elements of the crime of fraud, but because the suspect could not be caught at all, the victim could only cry while holding the quilt.