Law enforcement agencies have issued a warning about the Coscoin cryptocurrency investment platform following numerous claims of fraudulent activity.
Coscoin, also known as Cos or Cosetek, has established itself as a pioneering platform for AI-based quantitative trading, according to a recent BBC report. The platform lures investors with the promise of doubling their financial contributions.
But a surge in complaints in several parts of the UK has highlighted a worrying pattern of investors being unable to withdraw or access their funds since late November.
One situation occurred in the North East of England, where 78 individuals reported cumulative losses amounting to approximately £214,869. According to police reports, this means an average loss of around £2,900 per person affected.
The North East Regional Organized Crime Unit has responded to a number of these alleged scams by issuing external alerts. A closer look at the operating structure of Coscoin, which is believed to be headquartered in Washington, reveals mechanisms that encourage users to recruit others to the platform. These operational aspects are similar to the characteristics of a Ponzi or pyramid scheme.
Detective Inspector Paddy O’Keefe, from the Economic Crimes Unit, shared his insights with the BBC on the matter. He emphasized the age-old wisdom about financial transactions. If an offer seems overly lucrative, it is likely deceptive. He also warned of follow-on scams targeting previous victims in the name of recovering lost investments, and urged the public to remain vigilant to avoid falling victim to further fraud schemes.