The alleged cryptocurrency Ponzi scheme, Bitstream Circle, was believed to have taken at least $10 million in investor funds before March 13, 2022. The incident was made public when various conspiracy-involved investors requested withdrawals.
Reports from the Kenyan government have revealed that Bitstream Circle investors cannot withdraw funds after the supposed crypto Ponzi scheme collapsed. The reports claim that the scheme's masterminds may have absconded with investors and stolen their digital assets that are worth over $10 million.
A Chinese national was believed to be the mastermind of one Ponzi scheme that operated in the U.K. in November 2021 and was registered as Bitstream Circle.
More than 11,000 citizens from seven different countries fell victim to the scheme's lure, a number of them attracted by a promise that everyone was guaranteed a financial future.
Investors in Bitstream Circle, a cryptocurrency venture based in neighboring Kenya, may have lost tens of millions of dollars to scams over the previous year.
After a current Kenyan official claimed this scheme lost $120 million the previous year, allegations of fraud were leveled against the startup, considering how early its investors dismissed these claims.
However, Kimani Capital reported on Linkedin that many investors experienced difficulties with withdrawing funds on March 13, 2022. A message from the bitcoin network administrator of the Bitstream Circle telegram channel first proposed that a network service upgrade was the source of the problem.
In the wake of the enormous amount of wealth stolen due to scamming, an investors' report published by Kimani Capital discusses researchers' discovery of more than 10 million USDT stablecoins allegedly owned by scammers.
On Twitter, users have been sharing a screenshot purported to show one of the masterminds mocking the targets of fraud. Other users condemned how young potential investors, in particular, are still lured by the guarantee of high returns within a short period.
The allegations of fraud were leveled against the startup.
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