Recently a $10 Million (approx) worth of fake crypto currency scam were unearth in India. An Indian born mastermind was nabbed by the officer of special wing after a good cat & mouse run over a span of many days. The mastermind launched STA coin and lure various customers to invest into the crypto coin to get a higher return. The business model was planned on the MLM business model.
This does not sounds to be new way to fool people but we have heard of various scams or phishing attack, but duping customers money on pretext of higher return and that too through crypto coin is very unusual. Looking at his business model, I too get suspicious of joining any MLM business anymore.
The mastermind, headed a scheme called Solar Techno Alliance (STA). The scheme was launched in same vein as other popular #bitcoin #ethereum etc. In this scheme, the investors were promised to earn $20 to $3000 per day, if they join the scheme and further add more members.
To lure the investor STA token was launched as a solar technologies services using #blockchain technology. To popularize the coin the mastermind used various buzzwords like green energy or solar technology. They begin the scam by sending out various #whatsapp messages. The investors were promised to go on top of the #MLM pyramid if they join early.
This is the basic principle of any MLM business. The new investors generating money for old investors.
The scheme asked members to purchase STA tokens in slabs that began from $30 to $10000. The investors were promised a return upto 13% depending upon the money they put in. They design a differrnt hierarchy level, the lowest were placed in pearl category while the highest were known as kohinoor. In between the other slabs named as Ruby, Emerald, Topaz, Diamond, etc.
The scammers put out a mobile e - wallet to store their #STA token. They applies a lock in period of 100 days I.e the investors were asked to keep the money for 100 days. The investors were suppose to withdraw their money over a period of 40 months. Many small time grocer or trader were lur3d into the scheme. What more interesting is that the scamers target more of Eastern region people. Basically due to the fact that they are less aware of any latest technology. They just carried away with higher rate and keep on investing into the coin to get to the top level to generate higher return.
The enrolment to the crypto coin scheme was done through various social media platform. Words of mouth were also done in the meantime. To keep the scheme whirring the mastermind organized various off shore parties and event. To keep the investors interest into the scheme they frequently spent huge amount on luxuries and events.
India has yet to legalize cryptocurrency trading. Currently the crypto trading levies a 30 % tax on profits from selling, swapping, or spending on all virtual digital assets.
Even though #cryptocurrency works on decentralized model, the scamers of the scheme keeps an iron fist. They kept the entire power and freezes anyone account as per their wished.
The way #crypto and #web3 is evolved so rapidly over the years, it allow various conmen to get active to con. Many people who are not aware of such things are easily getting fooled. This is one of the instances, however we have other many up and running. As far as I know, I heard of similar scheme from the mouth of my relative. But being aware I avoided to join such scheme. But it is important to spread the words and let other common people or small traders about this kind of unscrupulous activity. Else more and more coin keep coming and keep duping people with fake promises.
@steemflow