Bitstream Circle, the masterminds of the Ponzi-style cryptocurrency Ponzi scheme, is believed to have taken more than $10,000,000 in investor funds. The alleged theft became apparent on March 13, 2022, when some of the scheme’s investors encountered problems making withdrawals.
Restrictions on Withdrawals
Reports from Kenya have said investors in an alleged crypto Ponzi scheme, Bitstream Circle, are now unable to withdraw funds following the scheme’s collapse. The reports add that the scheme’s masterminds may have made off with investors’ digital assets that are worth over $10 million.
One report states that the Ponzi scheme was first registered in Britain in November 2021 under the name Bitstream Circle Limited. Quin Yang, a Chinese national, is listed as its director. In the same report, it is stated that in four months the scheme attracted over 11,000 participants from seven countries. According to the report, most victims believed that they were being lured by the promised 5%-8% daily return on their investment.
New reports suggest that Kenyans could have suffered millions of dollars from yet another crypto scheme. This comes shortly after an official in Kenya claimed that $120 million was lost due to scams similar to those used during the previous financial year. While many of the scheme’s investors now see Bitstream Circle as a scam, the platform’s early investors initially dismissed these allegations.
Kimani Capital’s report on Linkedin reveals that many investors began having problems with withdrawing their funds in March 2022. A message from the administrator of Bitstream Circle’s telegram channel initially suggested that a network upgrade was the source of the problem. Investors were still unable to withdraw their funds after the “five-hour” network upgrade.
A lure of large, quick returns
Kimani Capital published a report pointing out the 10 million USDT stablecoins received at an address that was allegedly under the control of the scammers to support investor claims.
Some users shared screenshots on Twitter claiming to show the mastermind mocking victims. Other users lamentedYoung investors are being duped by promises of high returns within a short time.
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