Latest Crypto MLM Ponzi Scheme Collapses As FirstCoin Club Faces Accusations Of Fraud

FirstCoin Club Collapses Amidst Accusations Of Fraud

Never trust a Ponzi scheme. It should be obvious, right? Unfortunately, it’s generally not. FirstCoin Club was a Ponzi scheme launched in 2017 that called out the attention of many investors who used their real money and got the useless altcoin of the company as a prize.

As cryptos appeared in the market, many companies decided that the idea of cryptos was just too good not to explore. Many of them were not so honest, though, and this is the result.

At first, the people involved in the scheme could cash out their tokens selling them by real money. However, no Ponzi scheme lasts forever.

The complications came this time as someone named Mohammed Kibria, which was very high up in the food-chain of the scheme emailed the owners of the business, decided to take over the business. According to him, the two owners, Gyorgy Peestegi-Nagy and Gabor Kisbenedeck, paid him 15 BTC to take over the company.

He spent the money in order to create a new platform and has spent a lot of his time to use the resources as the owners promised him more funding. However, the owners simply never fulfilled their promises. They did not invest more and simply vanished.

They were looking for a front person to divert the attention from them and to be used as a scapegoat, Kibria believes, because they funded him to make a new platform and then ghosted him.

It Was All A Scam

It is not surprising that it was all a scam. The FirstCoin Club affirms that a total of $245 million USD was received by the group. While $146 million USD was used paying up commissions, the rest of the money, almost $100 million USD, was pocketed by the owners, which decided to vanish as soon as they could.

Kibria, after realizing that he and many others were scammed, is urging investors to file complaints with the Interpol in Hungary and Dubai, the two main targets of the scam. According to reports, the company is being investigated right now.

The FRST tokens of the platform were pumped until it reached the value of $17.50 USD and now they are worth less than half a cent in the market. The lesson here is that you should never trust scammers, so always do your homework and become well informed before investing.

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