FirstCoin Club collapses, investor alleges $245 million in fraud
FirstCoin Club was an MLM crypto Ponzi scheme launched mid 2017.
FirstCoin Club affiliates invested real money for worthless FRST, an altcoin launched by the company.
A monthly ROI in FRST was paid out, which affiliates could realize by selling their FRST to new gullible bagholders.
Despite all Ponzi schemes inevitably collapsing, a disturbing number of investors still feign surprise when they do.
When FirstCoin Club collapsed, one such investor was Mohammed Kibria.
A leaked email suggests Kibria was high enough up the FirstCoin food-chain to have access to the company’s owners.
Whether he was a FirstCoin Club net-winner however is unclear.
In an email recently sent out to FirstCoin Club investors, Kibria (right) claims Gyorgy Peresztegi-Nagy, Gabor Kisbenedek and Bella Kisbenedek paid him 15 BTC to take over the company.
I spent all the fund to create the new platform and the club, I have invested a lot of my own time effort and resources over the last few months and one of the reasons I took this on with that belief, was that the owners promised me funding for the new project.
At that time I also believed they had an interest in helping the members recover their loss.
Fast forward a few short months later and not only have they never fulfilled their promises, but with the information I have now uncovered, it appears they were simply interested in looking for a new ‘front-person’ with which to divert the attention from themselves and use as a scapegoat.
This would allow them to walk away with the $98 million they initially made.
Based on what he refers to as “FirstCoin Club data”, Kibria alleges FirstCoin Club took in $245 million dollars.
$146 million of that was spent paying commissions and initial ROI payments, with Peresztegi-Nagy and the Kisbenedeks pocketing the remaining $98 million.
Now that he’s realized he and his fellow FirstCoin Club affiliates have been scammed, Kibria is urging investors to file complaints with Interpol in Hungary and Dubai.
Back in February the LiveCoin exchange revealed FirstCoin Club was under investigation it “at least 2 countries”.
As of yet however nothing further has developed.
Sadly FirstCoin Club is an all too familiar tale throughout the MLM cryptocurrency niche.
Scammers set up an altcoin script, start generating coins, attach an MLM compensation plan, sell their generated coins to gullible schmucks, cash in millions and then exit-scam.
When the altcoin inevitably collapses (nobody outside of the scheme has any interest in it), bagholders like Mohammed Kibria are left wondering where their money went.
After an initial ~$17.50 pump shortly after FirstCoin Club launched, FRST is currently valued at half a cent.
On and on it goes…