Law enforcement organizations have issued a warning on the Coscoin cryptocurrency investment platform in response to many fraud claims.
As to the most recent article by the BBC, Coscoin, also known as Cos or Cosetek, has positioned itself as a trailblazing platform in artificial intelligence-powered quantitative trading.
Investors are drawn to the platform by the promise to double their contributions. But a wave of complaints from throughout the UK has brought attention to a troubling trend: since late November, investors have been unable to access or collect their money.
One instance has surfaced in the northeast of England, where 78 people have reported total losses of almost £214,869. According to police data, this equates to an average loss of almost £2,900 per affected individual.
In response to these numerous fraud charges, the North East Regional Organised Crime Unit released an external alert. A more thorough look at Coscoin’s organizational structure, which is thought to be based in Washington, reveals features that essentially encourage users to bring new members into the platform – this part of its business model is similar to that of a Ponzi or pyramid scam.
The head of the economic crime division, Detective Inspector Paddy O’Keefe, gave the BBC some insight into this problem. He reiterated the traditional adage about business transactions: an offer is probably fraudulent if it seems unduly advantageous.
He also urged the public to look for fraudulent schemes and cautioned against following frauds that take advantage of victims by pretending to be retrieving lost investments.
