Lately, the country has reported coming across several crypto Ponzi schemes, and this time, Bitstream Circle seems to be the fresh one
One of the famous crypto firms emerging in Kenya turns out to be an alleged crypto Ponzi scheme. Reports are that the crypto firm goes by the name Bitstream Circle believed to be a Ponzi scheme, as investors in Kenya cannot withdraw their funds following the scheme’s collapse. After this scheme turned out to be fraud, it is now believed that the group behind Bitstream Circle managed to steal more than $10 million in investor funds.
Alleged Ponzi scheme was said to be registered in Britain as Bitstream Circle Limited in Nov 2021, and its director was a person of Chinese nationality Quin Yang as per the reports. Further, it is detailed that the scheme had managed to accumulate funds of over 11,000 members across seven countries in just a short time of four months. Investigations and looking into it are continuing by the authorities.
A detailed report claims that Kenyans Citizens might have lost millions to another crypto scheme. Shortly after the claim of a Kenya Government official, about $120 million of capital was lost in similar scams that happened in the past year. After many investors called Bitstream Circle a scam, some early investors initially ignored and dismissed such allegations.
The reports published on LinkedIn by Kimani Capital explain that many investors have started facing issues in withdrawing funds since 13th march. When complained, a message from the got in response from Bitstream Circle’s telegram channel administrator initially suggested the problem was a network upgrade. However, even after the network upgrade promised for five hours was completed, investors could not withdraw the funds.
People luring towards such Ponzi schemes are always quick and heavy returns. As Bitstream Circle claimed their investors to earn daily interest of 5% to 8% return on their investments.
In a bid that claims to back, scammers might have stolen millions from investors and authors. The scam accumulated more than 10 million USDT stablecoins in addresses that are said to be controlled by scammers. Users shared screenshots on Twitter claiming that one of the masterminds behind the project was mocking the victims. Other users pointed out how young investors with short knowledge and experience, in particular, continue to be duped by such high returns promises.
