October 26, 2021


Cryptocurrency and Technology

Scam Alert – Pt2 – The Exit Scam

Ok, let’s start out with a disclaimer. Not all paid groups are scams but you should do some extreme vetting before joining one. This particular scam involves a paid group.

So, you want to make more Bitcoin. A seemingly popular account is posting all these great charts and showing you how much they have made trading over the last X amount of time. On paper, it all looks amazing and you want to know their secret. Well, this scam goes one of two ways and sometimes combines the two. There is the paid group version and the hedge fund version. Let’s go over both.

Paid Group

This scam usually involves one person with multiple accounts. Account A posts the results of their trades and shows off how great they are! (In actuality these trades never happened). The rest of this person’s fake accounts go to bolster how well everything is going and how much (fake) money they are making. From there they start to offer a paid group on telegram. Some groups ask 0.3 BTC some less. After payment, you get access to the group where the main account never gives info and there is nothing but white noise and chatter in the group chat. Making it hard to actually make anything. This goes on for a little while until Account A is called out on it and then disappears with all the money they collected for creating a telegram channel.

It doesn’t always go this way but look for groups with low monthly cost and little commitment meaning you can pay month to month. Groups that offer a free trial are a bonus also as you have nothing to lose. Be careful with paid groups. Lots of them are scams but there are plenty out there that are trying to make people money.

The Hedge Fund

This scam starts out the same way as the paid group scam and is extremely illegal in the US. Basically, after you see the amazing amount account A is making and all the dummy accounts bolstering account A the main account starts offering to manage funds but only for a few people because they can’t possibly manage funds for more than a few. Then, they set a minimum (for some reason 0.3 is the go-to number. Usually a red flag on its own.) You pay the minimum and they play you with fake results until the heat gets turned up and they are called out. At that point, they run with your funds. I did an article a few months back about a man and his brother who lost 30k to a raccoon. Yes, you read that right. Unlike paid groups, I can guarantee if they want to manage your money for you and are not a licensed they are scamming you.

Be safe and always take caution. Paid groups can be ok but do heavy vetting and stay away from hedges!