BitConnect scammers impersonate Texas Securities Board
Last month the Texas Securities Board published its Annual Enforcement Report.
Following its publication, scammers have been using the report to reach out and target BitConnect victims.
The ruse used is your typical advanced fee model. Scammers target victims and promise partial or full refunds, but only if an advanced fee is paid first.
Desperate victims pay the fee, only to discover they’ve been scammed yet again.
On November 30th, the Texas Securities Board published an alert regarding a notice doing the rounds.
The notice is a mock-up of the Securities Board’s website, with some pretty glaring tells.
Earlier this week the Texas SSB released a report on enforcement highlights, featuring protection and compensation for “investors from fraudulent cryptocurrency-related investment product.” and promised to refund 35% of participant’s investment.
The 35% refund plan will only compensation BitConnect participants whose Total investment earned does not equal 55% of total fund invested. for better clarification we suggest you chat us via telegram.
Copious grammatical errors aside, Telegram… really?
Whereas Facebook once held the crown for MLM fraud promotion, the rise of cryptocurrency has seen scammers switch to Telegram and Discord.
The notice demands a $250 “consent fee”, which upon paying is likely the last a BitConnect victim will hear from the scammers.
Obviously there’s no BitConnect 35% refund plan, as confirmed by the Texas Securities Board themselves.
The notice, which is labeled “Bitconnect update,” spoofs the Texas State Securities Board’s webpage and falsely claims that the Agency has promised to refund 35% of a “participant’s investment” in BitConnect.
“The facts are these: The Securities Commissioner issued an Emergency Cease and Desist Order against BitConnect on Jan. 4, 2018.
The Order has since become final and remains in full force and effect because BitConnect failed to timely request a hearing to attempt to modify or vacate the Order.”
The Order does not provide for the payment of restitution to BitConnect investors.
If you’ve lost money in BitConnect, your best bet is filing a complaint with the SEC.
A civil SEC lawsuit will likely see the appointment of a Receiver, whose task it will be to recover funds stolen through BitConnect.
Through a distribution claims process, recovered funds will then be returned to victims of the scheme.
You’re not going to get anything back handing over $250 to randoms over Telegram.
@Oz – RE: paragraph 11: “The notice demands a $350 “consent fee”, which upon paying is likely the last a BitConnect victim will hear from the scammers.”:
RE: paragraph (last): “You’re not going to get anything back handing over $250 to randoms over Telegram.”
shouldn’t both be $350?
Cheers. Good info though.
Ack yes, the amount is supposed to be $250.