Over 27 000 Bitcoin investors have been victimised after investing in BTC Global. Most of the victims were South African but the scam reached Australia and Canada.
How did this happen?
BTC Global was asking investors to send their hard earned coins to an online wallet address. They managed to entice investors by promoting a master trader by the name Steve Twain. Mr Twain is now believed to be a non-existent character who was created in order to enable BTC Global to get to investors pockets with ease.
BTC Global had also promised that investors would receive guaranteed returns of 14% per week if they sent the Bitcoin to its wallet address. Victims from SA told TimesLive that they had lost between R16 000-R1.4 million with BTC Global. Investors apparently received weekly payouts until Mr Twain disappeared about 3 weeks ago.
At the time of writing, BTC Global is now claiming that they cannot contact Mr Twain. They go on to state that they are just as shocked as everyone else:
We are as shocked as everyone. But we all knew the risks involved in placing funds with Steven. And all of us funded him independently.
Just a week ago we warned people about another suspected scheme, Bitcoin Club Network. Repetition is the father of learning so I think it may be necessary to repeat some of the advice in that article. If a deal seems too good to be true try to steer clear. Money is not handed out willy-nilly so please perform due diligence and research thoroughly before parting ways with your hard earned money.