FirstCoin Membership was an MLM crypto Ponzi scheme launched mid 2017.
FirstCoin Membership associates invested actual cash for nugatory FRST, an altcoin launched by the corporate.
A month-to-month ROI in FRST was paid out, which associates might understand by promoting their FRST to new gullible bagholders.
Regardless of all Ponzi schemes inevitably collapsing, a disturbing variety of traders nonetheless feign shock once they do.
When FirstCoin Membership collapsed, one such investor was Mohammed Kibria.
A leaked e-mail suggests Kibria was excessive sufficient up the FirstCoin food-chain to have entry to the corporate’s house owners.
Whether or not he was a FirstCoin Membership net-winner nonetheless is unclear.
In an e-mail lately despatched out to FirstCoin Membership traders, Kibria (proper) claims Gyorgy Peresztegi-Nagy, Gabor Kisbenedek and Bella Kisbenedek paid him 15 BTC to take over the corporate.
I spent all of the fund to create the brand new platform and the membership, I’ve invested a whole lot of my very own time effort and assets over the previous few months and one of many causes I took this on with that perception, was that the house owners promised me funding for the brand new challenge.
At the moment I additionally believed that they had an curiosity in serving to the members recuperate their loss.
Quick ahead just a few brief months later and never solely have they by no means fulfilled their guarantees, however with the knowledge I’ve now uncovered, it seems they had been merely occupied with searching for a brand new ‘front-person’ with which to divert the eye from themselves and use as a scapegoat.
This could permit them to stroll away with the $98 million they initially made.
Based mostly on what he refers to as “FirstCoin Membership information”, Kibria alleges FirstCoin Membership took in $245 million {dollars}.
$146 million of that was spent paying commissions and preliminary ROI funds, with Peresztegi-Nagy and the Kisbenedeks pocketing the remaining $98 million.
Now that he’s realized he and his fellow FirstCoin Membership associates have been scammed, Kibria is urging traders to file complaints with Interpol in Hungary and Dubai.
Again in February the LiveCoin trade revealed FirstCoin Membership was beneath investigation it “at the very least 2 international locations”.
As of but nonetheless nothing additional has developed.
Sadly FirstCoin Membership is an all too acquainted story all through the MLM cryptocurrency area of interest.
Scammers arrange an altcoin script, begin producing cash, connect an MLM compensation plan, promote their generated cash to gullible schmucks, money in thousands and thousands after which exit-scam.
When the altcoin inevitably collapses (no person outdoors of the scheme has any curiosity in it), bagholders like Mohammed Kibria are left questioning the place their cash went.
After an preliminary ~$17.50 pump shortly after FirstCoin Membership launched, FRST is at the moment valued at half a cent.
On and on it goes…