Falcon Coin collapses, at least $12.7 million dollars in losses
Despite a number of them collapsing, people are still throwing money at lending ICO Ponzi schemes.
Like the others, Falcon Coin was heavily promoted as a reload scam after BitConnect, the first ICO lending Ponzi, collapsed.
A few hours ago the Falcon Coin website went dead.
Falcon Coin investors are reporting top investors are claiming they’ve lost contact with “Will and Mike”, the pseudonyms of individuals claiming to be Falcon Coin’s admins.
Evidence of Falcon Coin’s admins planning their escape, well before the initial 180 day maturity period, is present in marketing material sent out on February 28th.
We will be listing on two major exchanges on the 5th of March, you’ll be able to trade on HitBTC and Coin Exchange.
Coin Market Cap will list the coin post the coins trading for more then [sic] 24 hours on the external exchanges.
Whether Falcon Coin’s worthless Ponzi points are listed on an external exchange remains to be seen (they can’t use FFC though as it’s already taken).
Regardless, even with Falcoin Coin points go public, as with BitConnect and DavorCoin, it’ll just be a race to the bottom.
When an ICO lending Ponzi scheme collapses, so too does the altcoin attached to it.
In the wake of Falcon Coin’s collapse, angry investors have revealed “Will and Mike” previously disclosed a bitcoin wallet used by the company.
The disclosed wallet address has taken in 1116.4897007 BTC, which today has a current street value of $12.7 million USD.
The current wallet balance is 0.00002801 BTC (32 cents).
Whether Falcon Coin used more than one bitcoin address to launder invested funds through is unknown.
The bitcoin wallet we do know about, is believed to have been revealed by either “Will” or “Mike” in a Telegram chat group.
Owing to its focus on privacy, over the past few years Telegram has emerged as the platform of choice for MLM scammers.
Pretty much anyone, anywhere can create a Telegram account and pretend to be anyone.
Ironically one of the primary benefits touted of participating in MLM cryptocurrency companies such as Falcon Coin is “transparency on the blockchain”.
Seems to me the only transparency a blockchain offers victims of scams is seeing exactly how much was stolen from them and when.