BBB Warning: Bitcoin Ponzi Scheme

May 3, 2018

BBB:Ponzi scheme triples Bitcoin in hours

Some people may not fully understand crypto-currencies, but they’ve likely heard about the substantial financial returns some investors have enjoyed since the price of Bitcoin has skyrocketed.  The potential for incredible returns, coupled with a lack of government and banking regulations, have made crypto-currency trading extremely appealing and lucrative for many, including scammers. 

The Better Business Bureau is investigating a scam right here in West Michigan.

“Invest in bitcoin and we’ll get you a 300% return on investment in a matter of hours.”

That’s John Masterson with the Better Business Bureau serving Western Michigan. And he says that’s the promise that’s coming from the website they were alerted to called Wedgecoin.com.  He says it’s a website that promises impossible returns on Bitcoin, initially using the address of a legitimate business in Holland… The Stow Group and Stowcoin.com.

“That business was able through an attorney, get that website shut down; the problem with that is as soon as stowcoin.com went down, Wedgecoin.com went up. it was the exact same website, same address, same ploy.”

Masterson says it’s praying on the get rich quick idea along with bitcoin being popular right now. Some people he says, have invested as much as 16-hundred dollars and never heard back from the company. 

“And what we’re finding is that people are investing 10 dollars and getting 30, but then investing more and never hearing back from this business. Never getting the return on investment, it’s happening in a wide scale.”

Masterson says they’re working with authorities to hopefully shut these websites down and eventually bring criminal charges to those involved.  In the meantime, use caution.

“And so we really want to encourage folks to, before you invest in anything, know what you’re getting into, all the rules and also the protections.”