Reports from Zimbabwe indicate that Martin Mhlanga, the mastermind behind the Cryptoshares Bitcoin Pyramid Project, disappeared with more than $6 million in investor funds. In addition to the disappearance of Mhlanga, the individuals who were believed to manage the social media channels of Cryptoshares also disappeared.
Unrealistic Cryptoshares promises
As a local report explained, Mhlanga successfully used a series of unrealistic promises to lure many unsuspecting people to invest. For example, the report explained that many victims were lured into investing after claiming that the original Cryptoshares investors received a monthly membership fee of US$2,000. It also promised investors twice the initial investment amount.
Some victims of Mhlanga believed that they could also get the same monthly payment, so they were believed to have sold their property just to raise the needed funds. Others are believed to have borrowed the required initial investment from the bank.
However, once September 1st-the day investors should receive payment-arrived, many Cryptoshares investors realized that they had been scammed. In fact, as a Twitter user Tendai Tomu pointed out, the early signs that the company is collapsing were problems when Cryptoshares paid investors at the end of August.
Although the report indicates that some Cryptoshares investors have reported such fraud to law enforcement, many in the crypto sector in Zimbabwe insist that such a move will not have much impact.They point out that other Bitcoin pyramid schemes, such as Bitcoin exchanges, similarly collapse After escaping many investors.
Stolen funds cannot be recovered
At the same time, on Twitter, some users like Tendai Tomu insist that the victims of this latest crypto pyramid project will never be able to withdraw their funds.Tom Said:
Really sad! I don’t think these funds will be returned, because remember that he used the deposit of the new investor to pay the money of the early investors, so the equation will never be balanced. The best thing people can do is to learn from it.
Others like the lawyer Prosper Mwedzi have Suggest Report fraud to cryptocurrency exchanges. However, some people insist that unless more measures are taken to educate people about the basics of investment, such scams will happen again.
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