A staggering scam : over $577 million stolen through fake cloud mining platforms. HashFlare, at the center of the scandal, is now under FBI investigation. Thousands of investors trapped by unrealistic promises and fake returns. Discover the shocking details uncovered by the investigation.
Brave New Coin, a recognized authority in crypto analysis, has conducted extensive research. According to their findings, the probability of being scammed by a Cloud Mining platform is almost 100%. Their investigations spanning several years have not identified a single legitimate Cloud Mining operation, similar to the notorious Hashflare scheme.
Here is a non-exhaustive list of identified fraudulent sites, some of which are still active :
Recently closed sites after stealing millions :
Sites still active but identified as fraudulent :
And the list continues with over 100 sites identified as fraudulent by crypto security experts.
Cloud Mining scams follow a well-established pattern that traps even experienced investors :
1. The Bait : Promotional emails promise guaranteed returns of 10% to 40% per month through “automated mining.” Websites are often well-designed with fake testimonials and real-time profit counters.
2. The Validation : To gain trust, these platforms actually pay out the first withdrawals on small amounts. A $20 investment might yield $30 in a few days, encouraging the victim to invest more.
3. The Trap : Once a significant amount is invested ($1,000 or more), sudden “technical issues” appear. Additional fees are demanded to “unlock” the account or “activate” withdrawals.
4. The Final Scam : The more fees the victim pays, the more new problems emerge. Eventually, the site disappears with all funds or becomes inaccessible.
If you have invested in a Cloud Mining platform, here are the steps to take immediately :
1. Stop all payments : Do not pay any additional “unlocking fees” or “maintenance fees.” This is the classic trap to extract even more money from you.
2. Document everything : Take screenshots of conversations, emails, payment proofs, and transaction history. These elements will be crucial for authorities.
3. Report the scam : Contact the relevant authorities: SEC in the United States, FCA in the UK, or equivalent bodies in your country.
4. Beware of “recovery agents” : Secondary scammers will contact you claiming they can recover your funds for a fee. This is a scam within a scam.
If you really want to gain exposure to the mining sector, here are the only legitimate options :
The message is clear: Cloud Mining is a scam in 99.9% of cases. With $577 million stolen by HashFlare alone and hundreds of other active fraudulent sites, this industry has become a hunting ground for scammers.
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
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