June 18 2020 | AtoZ Markets – Bitisis, a cryptocurrency exchange based in Iran, has been accused of pulling an exit scam with investment capitals garnered from Chinese residents through the Ponzi scheme. This, however, drew the attention of law enforcement agencies in the country, as they have begun investigating the case.
Bitisis allegedly operated as a Ponzi scheme
Per Chinese Media, the operators of Bitisis advertised their supposed Ponzi scheme to Chinese investors through different social media platforms such as Douban and Zhihu, including Baidu. They lured investors by promising them massive arbitrage opportunities.
Moreover, the report describes Bitisis as a crypto exchange wrapped up in one. It allows users to convert Bitcoin into its native token IRRT as a means to access Tether (USDT). However, the withdrawal process is tedious and involves many thresholds.
Are Chinese scammers behind Bitisis Exchange?
The reports on Bitisis exit scam began after the investors reportedly received messages which noted that the exchange had halted its business activities. This drew the attention of the Chinese police, who are investigating the alleged Bitisis exit scam case at the moment, according to the report.
This Chinese media reported that the actual operator of Bitisis exchange is a Chinese scammer who has mastered multiple overseas exchanges.
Read also:
- Malaysian Police Arrest 14 Chinese Nationals for Alleged Crypto Scam
- Thailand Police Arrests 24 Chinese Citizens for Bitcoin Scam
The scammer tried to launder the funds by transferring them to three wallet addresses held with major crypto exchanges. However, Bitisis exit scam failed as the disgruntled investors withdrew their frozen funds.
The victims, however, reached out to the exchanges on the case. After carefully analyzing the addresses, the exchanges confirmed the transfer and frozen the funds. As per the report, the scammer has a connection to other fraudulent platforms in other countries. For instance, the hacker has links tot he Venezuela-based ‘Bit-Ven’ scheme.
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