Alleged Dogecoin Mining Rip-off Rakes In $119 Million: Reviews


  • Folks have been conned into shopping for Dogecoin after which investing it in a dodgy scheme, studies in Turkey allege.
  • $119 million was allegedly stolen from 1,500 individuals, studies declare.

Scams are removed from uncommon on the earth of crypto, however seldom do they contain “mining” the world’s hottest meme coin: Dogecoin.

In response to native media in Turkey, a scammer has managed to tear off $119 million from would-be buyers by promising large returns with Dogecoin mining

The alleged scammer, recognized as “Turgut V,” and his group advised individuals in Turkey that they’d get 100% returns on an funding in Dogecoin mining expertise, according to Turkish information channel, NTV. 

Mining Dogecoin works a lot the identical manner as mining Bitcoin—by way of an energy-intensive course of known as “proof of labor” by which high-powered computer systems race to resolve complicated math issues with the winner receiving a reward within the type of cryptocurrency.

Turgut V conned unsuspecting buyers into shopping for Dogecoin and handing it over to him so he might make investments it in mining expertise, the report stated, including that the alleged victims’ lawyer filed a criticism with the Chief Public Prosecutor’s Workplace in Küçükçekmece, a suburb of Istanbul. 

Turgut V and several other others advised buyers in-person at luxurious properties and through Zoom calls that they might make large returns, the report stated, quoting the lawyer. 

However the system was then instantly closed after which Turgut V disappeared, in response to studies. 1,500 individuals fell for the alleged rip-off, studies allege. One sufferer advised NTV that “the system labored for 4 months” and “Every little thing was going effectively.” 

A courtroom has banned Turgut V and his associates from leaving the nation, NTV reported, as authorities examine. 

Dogecoin is the seventh largest cryptocurrency, with a market cap of $35.4 billion. It was initially created as a joke again in 2014 to poke enjoyable at Bitcoin however now it has actual worth, in accordance to very wealthy buyers, like billionaires Mark Cuban and Elon Musk. 

Crypto scams have gotten extra widespread. In August, scammers tricked individuals within the UK into investing in a faux Binance Sensible Chain service—and ran away with $22 million. 

The names and likeness of well-known individuals are typically used to trick individuals into believing investments are legit, too: final yr, for instance, $2 million was stolen in two months in a rip-off that led individuals to ship their Bitcoin to accounts falsely claiming to be owned by SpaceX and Tesla founder Elon Musk.

Musk, by the way, is intently related to Dogecoin, which itself has acquired quite a lot of consideration throughout the final yr. The meme coin has surged by 10,000% since October 2020, and the value bounce is basically all the way down to Musk, who typically tweets about Dogecoin. In Could, he even spoke in regards to the cryptocurrency on Saturday Night time Reside.

Dogecoin even has its personal basis working to show the asset right into a fully-functioning and globally-accepted fee methodology. The Dogecoin Basis’s advisory board consists of Ethereum co-founder, Vitalin Buterin, and a consultant for Elon Musk, Jared Birchall.

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