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HomeCrypto NewsMarketDOGE Fans Discover A Ponzi After Suspicious Transactions On The Dogecoin Chain

DOGE Fans Discover A Ponzi After Suspicious Transactions On The Dogecoin Chain

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A potentialDogecoin scam has been exposed by crypto fans.


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The crypto space is awash with scams, mostly because it’s hard to track stolen funds. Apparently, the latest scam involves Dogecoin. Reports indicate that the scam was discovered after the community noticed a large number of suspicious transactions on the Dogecoin chain.

Automated Accounts

A discovery made by one Dogecoin fan reveals that the said transactions were automated and very small. The said fan shared a list of the many addresses involved in the transactions.

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“A large number of small transactions worth 0.0207 doge were executed on a daily basis supposedly to hide the true nature of the business and the movement of money.”

Crypto scams operate just like pyramid schemes where a few people are paid out with other people’s money before the scammers make away with the rest of the money. The few people paid out are meant to make the “business idea” appear legitimate and possibly cover up the many red flags that come with such scams.

Suspiciously High Returns

Interestingly, the reported scam was hatched and marketed as an investment opportunity for Dogecoin holders. However, the high interest offered as a return on investment caught the eyes of various hawk-eyed crypto fans that helped expose the scheme.

An entity going by the name of Huilo Invest is the culprit associated with the scam. Apparently, the company appears to claim that it’s based in London, UK, but trackers have connected the dots and found out that it’s actually based in China. A closer look at its operations reveals that at one time, Huilo Invest had funds amounting to around $600,000 – possibly looted from unsuspecting crypto holders with a false promise of offering between 7% and 10% return on investment within a day. Huilo Invest also received funds in BTC, Ethereum, Tron, BCH, BNB, USD, and LTC, among other cryptos.

Marked As Dangerous

Interestingly, various investment forums have already marked the scam company as dangerous, making it even more conspicuous. The scam scheme seems to have ended, although such scams often come back in other forms. It has also been marked as a scam by scamosafe.com. 

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Author

Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

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