Crypto world trading.net was an online platform that claimed to offer high returns on cryptocurrency investments. It operated from March to June 2023, mainly targeting Indian investors. However, it turned out to be a scam that duped thousands of people and vanished with their money. This blog post will explore how the scam was executed, what the warning signs were, and how to avoid such frauds in the future.
How the Scam Worked
Crypto world trading.net promised to pay investors 1% daily interest on their deposits, which amounted to 365% annualized returns. It also claimed to have a team of experts who traded various cryptocurrencies on behalf of the investors. The minimum investment amount was Rs. 8,000 (about $107).
The scam was run by a person named Vikas Kalda, who approached potential investors through social media and word-of-mouth. He convinced them that crypto world trading.net was a legitimate and profitable platform that used blockchain technology and advanced tools. He also assured them that they would receive their payouts every weekend.
However, crypto world trading.net was nothing but a Ponzi scheme, where the money from new investors was used to pay the old ones. The platform had no real trading activity or revenue source. It relied on attracting more and more investors to sustain the payouts. As soon as the inflow of new money slowed down, the scam collapsed.
In August 2023, the crypto world trading.net website went offline, leaving thousands of investors in the lurch. The site displayed a message that it was under maintenance due to heavy load, but it never came back online. The scammers had fled with the money, estimated to be around Rs. 250 to 300 crores (about $33 to $40 million).
What Were the Warning Signs
Crypto world trading.net had several red flags that should have alerted the investors about its dubious nature. Some of them were:
- Unrealistic returns: The platform offered returns that were too good to be true. No legitimate investment can guarantee such high and consistent returns in a volatile and risky market like cryptocurrency.
- Lack of transparency: The platform did not disclose any information about its founders, team, location, registration, or license. It also did not provide any proof of its trading activity or performance.
- No withdrawal option: The platform did not allow investors to withdraw their principal amount or interest before a certain period. It also charged hefty fees for early withdrawals.
- Poor website design: The platform had a poorly designed website that had spelling and grammatical errors, broken links, and low-quality images. It also used generic terms like “crypto world” and “trading net” that could be easily confused with other platforms.
- No customer support: The platform did not have any customer support or grievance redressal mechanism. It only communicated through WhatsApp and Telegram groups, where it posted fake testimonials and positive reviews.
How to Avoid Such Scams in the Future
Crypto world trading.net was one of the many crypto scams that have emerged in recent years, exploiting the hype and ignorance around cryptocurrencies. To avoid falling prey to such frauds, investors should follow some basic guidelines:
- Do your research: Before investing in any platform or project, do your due diligence and verify its credibility and legitimacy. Check its website, social media accounts, reviews, ratings, and news articles. Look for information about its founders, team, location, registration, license, and partners.
- Be skeptical: Do not trust any platform or project that promises unrealistic returns or guarantees without any risk or effort. Remember that there is no such thing as a free lunch or easy money in the crypto world.
- Diversify your portfolio: Do not put all your eggs in one basket or invest more than you can afford to lose. Diversify your portfolio across different platforms, projects, and cryptocurrencies. This will reduce your exposure to any single scam or market fluctuation.
- Secure your funds: Use a reputable and secure wallet to store your cryptocurrencies. Do not share your private keys or passwords with anyone. Enable two-factor authentication and encryption on your devices. Beware of phishing emails and messages that ask for your personal or financial details.
Crypto world trading.net was a scam that duped thousands of investors and ran away with their money. It exploited the lack of awareness and regulation around cryptocurrencies in India. It also used deceptive marketing and social engineering techniques to lure unsuspecting investors.
The scam serves as a cautionary tale for anyone who wants to invest in cryptocurrencies. It highlights the need for proper education and vigilance among investors. It also underscores the importance of having a robust legal and regulatory framework for cryptocurrencies in India.
Cryptocurrencies are an exciting and innovative technology that have the potential to transform the world of finance and beyond. However, they also come with inherent risks and challenges that require careful consideration and due diligence. Investors should not blindly follow the hype or the herd, but rather make informed and rational decisions based on facts and logic.