Scams and frauds have long plagued the crypto-community. Especially when people have frequently devised innovative ways to defraud customers of their cryptocurrency holdings. A recent example from Turkey exemplifies this concept.
According to Turkish media sources, a Dogecoin scam has allegedly netted the perpetrators $119 million in deposits.
The revelation came earlier this week on local channel, which said that the fraudster, “Turgut V,” is currently on the run with all of the cash. “Turgut” and his 11 friends allegedly duped around 1,500 Turkish citizens into investing in Dogecoin mining technology.
The fraudsters would personally meet would-be investors at luxury networking events and via zoom calls, promising 100 percent returns on their investments in 40 days. They also formed an online Telegram group where they could talk about the business idea. Potential investors were instructed to purchase DOGE and transfer it to “Turgut,” who said he would use it to purchase Dogecoin mining equipment.
The scammers allegedly paid investors’ returns for three months. However, after amassing DOGE worth about $119 million, the criminals chose to flee, according to investigators.
The case is being investigated by the Chief Public Prosecutor’s Office in the Turkish neighborhood of Küçükçekmece.
Over the years, the memecoin has been implicated in various frauds, prompting observers to conclude that DOGE is more vulnerable to criminal exploitation. Indeed, following a spike in popularity and worth early this year, a recent report discovered that dubious Internet domain registrations connected to the joke cryptocurrency increased by 744 percent after January.
The investigation also discovered over 205 fake social media accounts mimicking “Dogefather” Elon Musk. These accounts have frequently been used to exploit his name in order to swindle investors online.
Earlier this year, a man lost $500,000 after donating 10 Bitcoins to a bogus Elon Musk Twitter account. The profile in question had guaranteed him a return on investment of 100 percent.
However, this is only one of the countless scams that take place on Twitter every day in the name of well-known supporters. Not only Musk, but other crypto superstars such as Ethereum Co-Founder Vitalik Buterin have been targeted.