Bitalium collapses, pulls “security audit” exit-scam
Bitalium has terminated bitcoin withdrawals.
As per an announcement sent out to affiliate investors earlier this week, ROI withdrawals can only be made in worthless Bitalium tokens.
BehindMLM reviewed Bitalium in May 2020. At the time the company was soliciting up to $30,000 in bitcoin on the promise of daily returns for up to 270 days.
Sometime after our review Bitalium launched Bitalum token (BLM), prepping the way for the inevitable exit-scam.
BLM is a an ERC-20 shit token that costs Bitalium little to nothing to generate on demand. BLM has no value outside of Bitalium itself.
Barely a few months out of launch, Bitalium claims that on October 12 there was a “security incident”.
As per Bitalium’s announcement, the nature of the incident is not disclosed.
We would like to inform you, that we are undergoing a security audit to prevent such issues in the future.
The audit consists of 2 stages:
- Reviewing the source code of our platform, which finished today morning and showed no issues. We would like to ensure that our platform is secure by design.
- Reviewing the security practices of our employees. This phase will be followed with extended training about phishing practices and other types of vulnerabilities and how to prevent them.
We would like to inform you that until the security audit is finished, you are free to make withdrawals in BLM token.
TL;DR: Thanks for your money, enjoy your shit token.
As per our Bitalium review, here’s how the public exchange exit-scam plays out;
First affiliate returns and possibly commissions will be switched over to Bitalium Token.
Bitalium Token costs the company little to nothing to generate on demand, and will initially only exist within the company.
For some time Bitalium Token withdrawals will still be honored through an internal exchange.
When the time comes to exit-scam, Bitalium Token will be announced on one or more dodgy exchanges.
The token launches, the value pumps due to marketing hype, Bitalium’s owner(s) and top investors sell off what they can, and Bitalium Token’s price will dump.
Thus far Bitalium hasn’t provided investors with a time-frame for their security audit.
It’s unclear whether Bitalium will go ahead with the public exchange dump, or just do a runner with what’s left.
Bitalium’s fictional CEO, Samuel Walch, was still doing corporate webinars as of October 6th.
Depending on affiliate investor backlash, there’s also the possibility withdrawals might be enabled again. For how long though is anyone’s guess.
The only reason a Ponzi scheme stops paying out is if withdrawals have exceeded invested funds.