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UK police warn against Coscoin following £215k crypto scam

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UK police warn against Coscoin following £215k crypto scam

  crypto.news 12 January 2024 20:14, UTC

UK police warn against Coscoin following £215k crypto scam

Law enforcement agencies have cautioned against the Coscoin crypto investment platform following numerous allegations of fraudulent activities.

According to the latest BBC report, Coscoin, alternatively called Cos or Cosetek, has presented itself as a pioneering platform in AI-driven quantitative trading. The platform entices investors with the promise of doubling their financial contributions.

However, a surge in complaints from various parts of the UK has highlighted a concerning pattern, wherein investors have been unable to retrieve or access their funds since late November.

One situation has emerged in the north-east of England, where 78 individuals have reported cumulative losses amounting to approximately £214,869. This translates to an average loss of around £2,900 per affected person, as per the police reports.

A new platform is experiencing withdrawal issues. If you have funds, notify others to avoid it; it’s a scam. #Galacticash #Coincheck #XYT #TidexCoin #cosetek #coscoin #XYG #AIC $XYG #traweb3 #traweb3 #Jxbit #Qtok pic.twitter.com/SldnITPuQ9

— Michael Luca (@recoveryexpertx) January 8, 2024

You might also like: Grayscale moves $183m in BTC amid ETF fee competition

The North East Regional Organised Crime Unit has responded to these multiple fraud allegations by issuing an external warning. A closer examination of Coscoin’s operational structure, which is believed to have its base in Washington, reveals mechanisms that seemingly encourage users to recruit others into the platform — this aspect of its operation resembles the characteristics of a Ponzi or pyramid scheme.

Detective Inspector Paddy O’Keefe, heading the economic crime division, shared insights with the BBC on this issue. He emphasized the age-old wisdom regarding financial dealings: if an offer appears excessively lucrative, it is likely deceptive. He also warned against subsequent scams that prey on previous victims under the guise of recovering lost investments, urging the public to remain vigilant to avoid falling prey to further fraudulent schemes.


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