Within any commercial industry, there is likely no shortage of scams and fraudulent schemes and the cryptocurrency industry is no different as they have been reports over the years of people taking advantage of others’ lack of knowledge about cryptocurrency and luring them into various false business practices which promise unrealistic high returns. Many peoples’ understanding of the financial aspect of cryptocurrency is simply that a group of people became very wealthy overnight during the first major bull runs, and in a bid to replicate this success, they often fall into the wrong hands.

A new case has been brought forward in Thailand by a lawyer representing victims of a pyramid scheme and has been reported to the country’s Department of Special Investigation (DSI). 

Pyramid Scheme 

According to a report from January 16, 2020, the total number of victims is about 20 and a combined $2.5 million was lost in the scheme and due to the gravity of the case, the victims are going beyond just reporting to the police and reporting this to the Department of special investigation. The department is a branch of the department of justice and works hand-in-hand with the royal police force in order to investigate special cases such as organized crime.

The scheme in question was dubbed “Khung Nong Cryptocurrency Trading,” and ran in the Krabi, Trang, Yala, Pattani, and Narathiwat provinces in 2018 and promised returns of up to 8 percent weekly to the locals. It is reported than many sold off their assets and properties to invest in the scheme until payouts stopped.

The scam ran from February 2018 to October 2018 and many who invested are reported to have been told various lies in order to stall them and one victim was given a check that eventually bounced. This scam used the classic technique of promising and unrealistic return on investment and many people, not realizing how unlikely such a return would be, invested in the scheme only to have their money lost. The matter is now being investigated by the authorities and it is not yet known if the perpetrators will be caught.

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