As a seasoned crypto investor with years of experience under my belt, I’ve seen my fair share of scams and fraudulent schemes in the cryptocurrency world. The latest news about Smart Trade Coin STC being busted as a Ponzi scheme in Turkey is unfortunately not surprising.
As a crypto investor, I was alarmed to hear about the significant cryptocurrency-related scam that was recently uncovered in Ankara, Turkey. On Thursday, the Minister of Interior announced that authorities had carried out a major operation against this malicious platform, which is believed to have orchestrated a Ponzi scheme. Over the last few years, this deceitful operation is said to have swindled more than $1 billion from unsuspecting victims.
Crypto Ponzi Scheme Busted
Ali Yerlikaya, the Turkish Minister of Interior, revealed on X that more than 100 suspects were taken into custody during a cryptocurrency investigation in Ankara. This operation, named “CYBERGÖZ-42,” exposed illegal activities related to Smart Trade Coin (STC) within Turkey.
As a researcher examining the information provided in the post, I’ve discovered that the supposedly fraudulent crypto trading platform, Smart Trade Coin, enticed investors with the promise of “high profits without any risk.” The team behind this platform reassured their clients that their investments were secure with features such as the “Stop loss” function and “advanced trading bots.” These features were marketed to automatically execute buy and sell transactions on behalf of the investors.
The probe uncovered the truth that this crypto platform was nothing more than a classic Ponzi scheme, swindling over $1 billion, or approximately 32 billion Turkish Liras, from its unsuspecting users. Previous investors were enticed with the promise of “earning profits” if they recruited fresh customers to the platform. The funds of new investors were then exploited to maintain the fraudulent scheme’s operations.
In a coordinated action across 21 Turkish provinces, law enforcement agencies apprehended 127 individuals on charges of orchestrating “transnational swindles through the establishment of Ponzi schemes” and “illicitly amassing and laundering proceeds derived from criminal activities.”
In the course of the operation, officials confiscated approximately 177 immovable properties and 61 moveable items, valued at around 1 billion Turkish Liras. Furthermore, they took possession of an unregistered firearm, a blank-firing gun, and some cryptocurrencies.
Smart Trade Coin’s Track Record Of Scams
Since 2021, there have been allegations that Smart Trade Coin is a fraudulent venture. This suspicion has grown due to protests from Turkish investors who have publicly criticized the company’s business dealings based on reports from local news sources.
As a researcher investigating news stories related to cryptocurrency trading platforms, I came across an article in the Kocaeli Newspaper that reported on numerous criminal complaints lodged against a specific platform called Smart Trade Coin. In the year 2021, approximately 50 individuals assembled in front of Ankara Courthouse to voice their concerns and protest against this platform and its team.
Lawyer Yagiz Kaya for the victims revealed that approximately 50,000 individuals in Turkey had fallen victim to the fraudulent activities of the company. Despite numerous complaints and an estimated financial loss of around $2 billion for investors, no action had been initiated at the time.
Additionally, some victim accounts reveal that they were persuaded to obtain loans and dispose of their properties to secure “a monthly profit of 36 percent.” However, rather than reaping substantial profits, the majority of clients found themselves financially drained and indebted instead.
In the year 2023, AI Multiple Research, a renowned data analysis and research organization, disclosed findings from an examination they conducted on Smart Trade Coin. Based on their investigation, it appeared that this crypto platform might be a scam, and potential investors were advised with caution against engaging in transactions on the platform.
Cem Dilmegani, the lead analyst at AI Multiple, brought attention to the exaggerated statements made on the company’s former website. The site previously advertised offering “software that links to various crypto exchanges” and enabling users to “manage multiple crypto exchange accounts through a single application.”
Dilmegani pointed out that while it wasn’t completely unfeasible, executing arbitrage transactions between different exchanges would pose significant challenges in real-world scenarios.
Although this corporation might develop the technology for making reliable profits through arbitrage, it would not promote such activities to individual investors. Instead, it would secure financing and execute large-scale arbitrage transactions privately.
In the end, the analyst pointed out the company’s vague business dealings, misleading promotions, and paucity of details as red flags indicating that the company was likely a fraud from its inception.
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2024-05-31 05:12