“The most general idea of a pyramid is an organization that pays out money to contributors at the expense of other participants who invested in the pyramid later. Cryptocurrency pyramids differ from others only in that funds are collected in cryptocurrency, both in their own coins and in common ones (BTC, ETH, USDT, LTC),” the analysts explained.
In Russia, there is an increase in the number of financial pyramids that are associated with cryptocurrency. In 2022, this share was 58%, and in 2023 – more than 70%.
“Emerging projects work for only two to four months, gain their audience and the required amount of funds, and stop their activities. However, they do not always do it all at once, and therefore there are not many appeals from victims to law enforcement agencies, ”Shard said.
Often the organizers of new cryptocurrency pyramids are former participants in other “collapsed” pyramids who managed to avoid responsibility.
“In order to attract an audience, pyramid schemes have to carry out aggressive advertising campaigns, lure potential participants not only with quick earnings, but also with a technological model, the presence of their own cryptocurrency and even their own metaverse,” the experts added.
In February, the US Department of Justice filed charges against four Russians who founded Forsage, a decentralized investment platform. They are accused of creating a pyramid scheme for $ 340 million. In August, the press service of the Financial Monitoring Agency (AFK) of Kazakhstan reported that the court of the city of Astana passed a sentence on the creator and head of the Sincere Systems cryptocurrency financial pyramid.
Source: Bits
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