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Crypto Ponzi Scheme in Thailand under investigation

Crypto Ponzi Scheme in Thailand under investigation
By We Play Coins
Added on Jan 19, 2020

Crypto ponzi scheme in thailand has come to light in recent days, once again throwing doubt over the credibility of cryptocurrencies. Thailand police have begun investigating a pyramid scheme after millions of baht were lost in the scheme.

The crypto community may point out that ponzi schemes happen outside of cryptocurrency more often, the credibilty of crypto takes a hit nevertheless. Multiple countries have cited crypto currency fraud schemes as the reason for banning them. The issue is a red herring, in that any currency can be used to perpetuate a ponzi scheme. However, it is a political talking point that keeps cropping up. Without proper education people will also look at cryptocurrencies as fringe investments at best or down right scams at worst.

The report was made by the bangkok post. South East Asian countries are seeing a larger number of crypto scams due to a lack of understanding of blockchain and cryptocurrencies.

Victims of a cryptocurrency pyramid scheme where losses amounted to around 75 million baht have asked the Department of Special Investigation (DSI) to take up their case.

Phadungsak Tienpairoj, the leader of a human rights foundation, on Wednesday took about 20 victims of the pyramid scheme to the DSI.

The lawyer proceeded to ask the DSI to take up the case — which had been handled by Ko Lanta police station in Krabi province — as it had caused many people across the region to lose millions of baht.

The cryptocurrency trading scheme, called “Khung Nong Cryptocurrency Trading”, became famous in the southern region in 2018. Promising returns of as much as 8% per week, many local people in Krabi, Trang, Yala, Pattani, and Narathiwat pledged and sold their assets, land, cars and motorcycles to get money to invest in it.

The scheme grew quickly as it used recruiters to entice more investors. The scheme promised that for every 100,000 baht of investment, investors would receive 8,000 baht in interest every week.

The bogus investment scheme started in October 2018 and ended the following February when the operator stopped paying dividends, citing the macroeconomic meltdown.

One victim, Noopad Wachedi, from Koh Lanta district of Krabi, said she pledged land to get more money to invest. Then one of the operators of the scheme gave her a cheque which bounced.

She added there are about six groups with four members each and her recruiter claimed the investment was overseen by state officers.

Ms Noopad’s relative, another victim, said the recruiters used several tricks to maintain the trust of investors.

Pol Capt Thas Laothawee, deputy director of the Bureau of Illegal Financial Business Crime who received their complaints yesterday, said the DSI is looking into the case.

The Bangkok Post reported on Jan. 16 that roughly 20 victims, whose losses are alleged to total 75 million baht (~$2.5 million), are seeking to go beyond the investigations of local police in Thailand’s Krabi province given the gravity of the case.

The DSI, a department of the Thai Ministry of Justice, works independently of the Thai Royal Police force and is tasked with the investigation of “special cases,” such as those involving organized criminal networks or cases tied to national security threats. Crypto Ponzi Scheme in Thailand under investigation puts all crypto activity under the scanner in the country.