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Another Cryptocurrency Scam Has Cost Kenyans Millions Of Dollars

The perpetrators of the alleged cryptocurrency Ponzi scheme known as Bitstream Circle are suspected of stealing more than $10 million in investor cash. The alleged theft was discovered on March 13, 2022, when some of the scheme’s investors had difficulty making withdrawals.

According to reports from Kenya, investors in an alleged crypto Ponzi scheme, Bitstream Circle, are now unable to withdraw cash due to the scheme’s collapse. According to the reports, the scheme’s masterminds may have fled with digital assets worth more than $10 million from investors.

According to one report, the suspected Ponzi scam was formed in the United Kingdom as Bitstream Circle Limited in November 2021, with Chinese national Quin Yang described as the director. According to the study, in less than four months, the plan had gathered over 11,000 participants from seven different nations. According to the investigation, the majority of victims were reportedly enticed by the promise of a daily return on investment of between 5% and 8%.

Kenyans may have lost millions to yet another cryptocurrency hoax, according to new reports. This comes after a Kenyan government official estimated $120 million had been lost to similar scams in the previous fiscal year. While many of the scheme’s investors now believe Bitstream Circle is a scam, the platform’s early investors initially ignored these claims.

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However, as a post released on Linkedin by Kimani Capital reveals, many investors began having difficulty withdrawing funds on March 13, 2022. The administrator of Bitstream Circle’s telegram channel initially indicated that the problem was caused by a network upgrade. Despite the fact that the so-called five-hour network update was done, investors were still unable to withdraw their monies.

Moreover, in an effort to back up charges that scammers stole millions from naive investors, the authors of a report released by Kimani Capital point to more than 10 million USDT stablecoins received by an address supposedly controlled by the scammers.

Users on Twitter have been posting a screenshot purportedly showing one of the perpetrators ridiculing the victims. Other commenters bemoaned how young investors, in particular, are still fooled by the promise of extremely large returns in a very short period of time.