A recent report told of a scam routine called BitConnect, which took away US $2 billion worldwide and affected more than 4000 retail investors worldwide.
From 2017 to 2018, BitConnect, the cryptocurrency investment trading platform, made a loan plan. Users can convert Bitcoin into BitConnect Coin, a virtual currency issued by the company, and then use the channel of lending virtual currency to earn interest. It is said that the monthly yield can reach 40% and the daily investment return can be at least 1%.
It was a good time for cryptocurrencies. An Indian founded BitConnect in 2016, and he recruited a promoter in the United States called Akara. Akaro has set up a website to promote the loan plan. He can get 15% of the commission for each business.
Arcaro has developed a powerful marketing and a set of professional scripts, claiming that the company has core technologies such as “trading robot” and “fluctuation software”, and can capture the dynamics of the encryption market without losing money. Then, the traditional skills appeared: in order to attract more investors, it began to find offline, forming a pyramid selling model.
According to an official survey in the United States, investors’ bitcoins have been transferred to many digital accounts controlled by Arcaro.
Akaro was sentenced to 38 months in prison by the United States federal court and confiscated a total of 80 million dollars.
In fact, the liar’s routine is particularly simple when it is clear: use all means to create a high yield illusion. We ordinary people, seeing this kind of pie falling from the sky, just take a detour.