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Bitcion Trader is No Longer Available, Another Ponzi Scheme

Back te march wij have discussed the service BTC Arbs warning users that it is a Ponzi scheme spil it offers way too high terugwedstrijd of investment te very brief period of time. This is the way hat Ponzi schemes work – attract people to invest money (or coins) promising them to have high profit te no time, but te the end most if not all of the investors end up losing money. Aside from BTC Arbs back then wij have warned you about a few more websites that are most likely Ponzi schemes spil well and to be careful with them, one of thesis sites wasgoed Bitcoin Trader. It is interesting to note that out of 9 websites te total wij listed back then presently just 1 is still operational, but who knows for how long this will proceed. There are however many more fresh ones attempting to get away with your money providing you promises for high profit, so spil wij repeating our warning to be careful with websites that offerande you something that is just too good to be true, spil most of the times it actually is.

Here is what wasgoed sent to the users of Bitcoin Trader a few days ago:

Regrettably I have to announce the failure and closure of Bitcoin Trader.

While preparing for the final audit results, a task wij were working on for weeks now, our bitcoin wallet has bot hacked and emptied, just after exchanging our fiat holdings within the exchanges to bitcoin and transferring our entire holdings to our wallet, te order to proof our solvency.

It is a known fact that I personally opposed any proof of solvency, but agreed to conduct it for the sake of a few dozen petite and medium investors.

The hacker contacted mij shortly after he took advantage of our holdings and demanded a ransom te order to transfer the coins back. I have agreed to a 25% ransom of the entire sum, but haven’t heard back from him for several days now.

My aim wasgoed to create something based on trust, just spil bitcoin itself is based on distributed trust. Unluckily I vereiste admit today, I have failed. All left to do now is to announce bankruptcy with the Panamanian authorities and to mitt overheen all relevant files and information for further investigation.

At the ogenblik the webstek is no longer available, so wij can clearly confirm that this wasgoed a Ponzi scheme spil well. The excuse of getting hacked and all of their Bitcoins stolen wij’ve seen a lotsbestemming already, even MtGox went this way, tho’ they were not originally an investment type of scam, but a crypto currency exchange. The interesting thing wij have observed spil a result of our warnings wasgoed that even tho’ wij have pointed out that some websites are most likely a Ponzi scheme there were people still registering and using them despite reading our warnings. It is true that with some Ponzi schemes or high-yield investment program (HYIP) you can make some money if you are prompt to get te and then get out spil they usually pay out originally to attract more users, however it is very risky and you will be making money at the expense of other investors te the end. A word of warning, if an investment service of any zuigeling offers you to make more than 10% on a yearly ondergrond then you should normally consider it a risky investment. If a service offers you something like 5-10% comeback on a monthly poot, not to mention when they promise you such high daily comes back, then you should be aware that it is most likely a Ponzi scheme, so be very careful with thesis spil ter the end you will most likely lose money than make profit.

Ter brief – if something looks too good to be true, then it very likely is and you should be wise and best avoid it.

  • Ter: General Informatie
  • Tags: Bitcoin Trader, BTC Arbs, HYIP, Ponzi scheme, scam

BTC Arbs Bitcoin Arbitrage And Other Ponzi Schemes

Wij have bot asked by a reader about our opinion and to to check out a webstek called BTC Arbs that supposedly offers daily comebacks of invested money or Bitcoins of 0.1% to 10%. What the webstek claims to do ter order to provide so high daily comes back on invested money or BTC is arbitrage of Bitcoins inbetween different exchanges. The webstek seems to be well designed and looks very persuading te terms of information available on it. The ondergrens investment is $50 or 0.05 Bitcoins and the webpagina accepts onmiddellijk Bitcoin transfers spil well spil money deposits from investors with no maximum investment amount. The webstek even has a Results pagina a daily terugwedstrijd rate on your investment, so everything seems truly legit, especially if you do not look into things te detail and are captured by the high profit you are promised. The problem however is that the webstek is most likely just a scam and another well made Ponzi Scheme that is there to make some quick money at users’ expense!

What should raise a warning te this websites and other sites at very first is the very high come back rate or the so called high-yield investment program (HYIP) that you are being promised on a daily voet, this is the most common thing for Ponzi Schemes that attracts user’s attention and fuels their greed a lotsbestemming. Up to Ten procent vanaf day means you can get rich very rapid for doing nothing, yeah, right… ter reality just the opposite. The next thing you should look into is who is behind the webstek, and the only thing about that you can find on the webstek is that it is based te Switzerland, however there is not informatie about the company or address or event at least mail or phone to voeling them on the Voeling pagina. Furthermore the webstek claims to be created ter November of 2013, but a quick whois comes back different gegevens – Creation Date: 2014-01-04 20:13:00, anonymous registration and hosted ter a web server ter Malaysia. It all seems less an less legit and clearly the webstek claims things that are far from true…

You can see that some people have already tested the BTC Arbs service and report making some money already on top of their investment and withdrawing their earnings successfully. This is a normal way of operation – the very first “investors” te a Ponzi Scheme do get paid te order to persuade them that everything is working spil promised and to encourage them to invest more and more into the service and to bring other people too. Te reality however the “earnings” the earlier “investors” are getting do come from money that fresh users brought to the service are investing into it. And spil soon spil the authors of the Ponzi Scheme determine to get away with the all the money everything will fall down and some people will actually liberate money. But even ter this script if you are one of the “early investors” and use the service for just a few days with puny amount of Bitcoins (never invest real contant into such Ponzi Schemes. ) you might actually end up making some specie. Never, never and NEVER invest long term ter a Ponzi Scheme or HYIP webstek, but what is even better thing to do is to stay away from such websites! Wij would not recommend to use services such spil this one, even if there is some puny chance to actually profit from using them, because this will be at the expense of somebody else just like you!

Ter brief – if something looks too good to be true, then it very likely is and you should be wise and best avoid it.

High-yield investment program (HYIP)

A high-yield investment program (HYIP) is a type of Ponzi scheme, an investment scam that promises unsustainably high terugwedstrijd on investment by paying previous investors with the money invested by fresh investors. Most of thesis scams work from anonymous offshore bases which make them hard to track down. Operators generally set up a webstek suggesting an “investment program” which promises very high comes back, such spil 1% vanaf day or even more, disclosing little or no detail about the underlying management, location, or other aspects of how money is to be invested. Or providing you a nice story about the entire thing such spil BTC arbitrage, that may sound believable to rookies or people that are generally not very experienced and toevluchthaven’t suffered yet from such a fraudulent scheme.

A Ponzi scheme is a fraudulent investment operation that pays comebacks to its investors from existing capital or fresh capital paid by fresh investors, rather than from profit earned by the individual or organization running the operation. Operators of Ponzi schemes usually entice fresh investors by suggesting higher comebacks than other investments, te the form of short-term comes back that are either abnormally high or unusually consistent. The perpetuation of the high comebacks requires an ever-increasing flow of money from fresh investors to sustain the scheme. The scheme is named after Charles Ponzi, who became legendary for using the technology ter 1920, even however he did not invent the scheme, but his operation took te so much money that it wasgoed the very first to become known via the United States. Ponzi’s original scheme wasgoed based on the arbitrage of international reply coupons for postage stamps, however, he soon diverted investors’ money to make payments to earlier investors and himself.

Other similar websites to be careful with:

The above list contains a few more websites that do rise some concerns spil well, however wij are not telling that they are all scams for sure, still wij recommend to be careful should you determine to attempt them out. If you still want to attempt them out do so with the ondergrens investment amount and do not be te a hurry to invest a loterijlot of coins! Do note that usually if somebody promises you a 2-5-10% or more daily terugwedstrijd of investment or even more you should indeed be careful and that applies not only to crypto currencies.

  • Ter: General Informatie
  • Tags: Bitcoin ponzi scheme, Bitcoin Trader, BTC Arbs, BTC Arbs down, BTC Arbs not available, BTC Arbs opinion, BTC Arbs ponzi scheme, BTC Arbs review, BTC Arbs scam, BTC Arbs test, BTC ponzi scheme, High-yield investment program, HYIP, My Daily Coin, Ponzi scheme

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