Called Coscoin, an application promised to double investments on the platform. However, investors believe they have fallen into a scam after withdrawals were halted.
According to the Coscoin website, the project was founded in 2015 and is being used “quantum artificial intelligence” to deliver the promised results. Going further, it is also possible to find a certificate from the company, which would be registered in the US.
Another curiosity is that there is a button to download the application from the Apple App Store. However, when the user clicks on the link, the user is taken directly to another website called Coshman, where promotions and services from possible scammers can be found.
“Coscoin Thanksgiving Event” promised to double the cryptocurrencies deposited on the platform. For example, for every 123.99 Tether (USDT) deposited, users will receive a bonus of 123 Tether (USDT).
Another image shows that any user who completes 2 or more levels of the Thanksgiving event would earn a bonus reward of 500 USDT. The value would reach 1,000 USDT for those who reached level 3.
Investors think they have been scammed
While big investors of our time celebrate small annual gains, the Coscoin app promised to immediately double its customers’ investments. In other words, it was already a big red flag.
But perhaps due to lack of knowledge, some investors ignored this and put their savings into the app. In conversation with the BBC, several Britons reported on their experiences.
“I thought it was legit because I could withdraw my money and it increased my initial investment”, Nik Pearce told the BBC. Afterwards he reveals that he also invited friends and family to use the application.
“When I initially saw that I could withdraw, I told my family and friends and they signed up.”
Apparently the option to withdraw was just a bait for would-be scammers. After the Thanksgiving event, admissions were blocked. In the application you will find a message about late payments.
“Due to the large amount of money involved in this Thanksgiving event, COSCOIN must pay taxes and wait for the tax authorities to verify the payment”points to Coscoin’s statement.
“The Tax Authorities will implement the new modality [T+2 de 72 horas] to analyze the user’s withdrawal request!”
Then the message states that the event that doubles users’ investment will continue for another 24 hours. In other words, an attempt to get more money from these people.
“With Christmas just around the corner, I feel responsible for losing people’s money.”said the user who invited friends and family to the scam. “I just want to warn others not to fall for these schemes.”
Another investor showed the BBC that he has a balance of £3,000 (R$18,500) in Coscoin, but cannot withdraw it. “They have my money and I want it back”, said another victim. According to reports, his friends and acquaintances also lost money on the app.
Finally, one of them came up with that idea “It seemed too good to be true”, but he didn’t believe his instincts and continued. Therefore, the recommendation is to doubt promises of income, regardless of the percentage offered.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
