The perpetrators of the alleged cryptocurrency Ponzi scheme known as Bitstream Circle are suspected of stealing more than $10 million in investor funds. The alleged theft was discovered on March 13, 2022, when some of the scheme’s investors had difficulty making withdrawals.
According to reports from Kenya, investors in an alleged crypto Ponzi scheme, Bitstream Circle, are now unable to withdraw funds due to the scheme’s collapse. According to the reports, the scheme’s masterminds may have fled with digital assets worth more than $10 million from investors.
Base on report, the alleged Ponzi scheme was registered in the United Kingdom as Bitstream Circle Limited in November 2021, with Chinese national Quin Yang listed as the director. According to the report, in less than four months, the scheme had gathered over 11,000 members from seven different countries. Most victims were apparently lured by the promise of a daily return on investment of between 5% and 8%, the report suggested.
Kenyans may have lost millions to yet another cryptocurrency scheme, according to new reports. This comes after a Kenyan government official claimed $120 million had been lost to similar scams in the previous fiscal year. While many of the scheme’s investors now believe Bitstream Circle is a scam, the platform’s early investors initially dismissed these claims.
However, as a report published on Linkedin by Kimani Capital explains, many investors began having difficulty withdrawing funds on March 13, 2022. The administrator of Bitstream Circle’s telegram channel initially suggested that the problem was caused by a network upgrade. Despite the fact that the so-called five-hour network upgrade was completed, investors were still unable to withdraw their funds.
Meanwhile, in an effort to back up claims that scammers stole millions from unsuspecting investors, the authors of a report published by Kimani Capital point to more than 10 million USDT stablecoins received by an address allegedly controlled by the scammers.
Users on Twitter have been sharing a screenshot purportedly showing one of the perpetrators mocking the victims. Other users bemoaned how young investors, in particular, are still duped by the promise of extremely high returns in a very short period of time.