Thousands of Investors have Lost their Entire Savings in a Crypto Currency Trading App 'I Earn Bot'.
The company investigating the matter has expressed concerns that this scam could be one of the biggest crypto scandals to date. With each passing year, crypto currency trading has become increasingly popular, with promises of quick profits for investors in exchange for their money.
However, regulatory bodies are advising caution for investors in this type of investment, as fraudulent schemes continue to increase and deceive investors of their hard-earned money.
I requested to withdraw my currency, and my money disappeared," said Rozina (fictitious name), who has connections to Romania, about the fraud she encountered. "When I invested my money through the EarnBot app, I suffered hundreds of euros in losses."
Rozina requested anonymity due to concerns about damaging her professional reputation from the financial losses she incurred.
"Crypto currency buyers like me were informed that our investments would be managed through the company's artificial intelligence program, and we were assured of higher profits through this method," she explained.
"I invested through the EarnBot app for one month, and the graphics on the app showed that my investments were growing," Rozina continued.
"In the beginning, everything looked professional and good. They even announced maintenance of the app, and after some time, the process of withdrawing money from the app froze," she said.
Rozina revealed that people started expressing their concerns about the issue immediately.
"Some people started asking what was happening, why they couldn't withdraw their money. After seeing all this, I requested to withdraw my currency, and my money disappeared. My portfolio became empty, but the money didn't even appear in my wallet," she added.
Gabriel Greaves, an expert in information technology in the country, sponsored the IRN Boot app, and several prominent figures, including government officials and people associated with the education sector in Romania, were prepared to invest in the app due to his reputation. Greaves himself fell victim to the investment scam and lost all his money.
However, Rozina says that if Greaves had not been involved in promoting the app, she would never have considered investing in it.
"We had the freedom to think that there would be no fraud in it, but the reality is that there was a credible professor's name between us and the company to trust," she said. "His presence did not allow us to doubt it and even think about investigating it."
The fraud involving cryptocurrency in Romania is not the first of its kind, nor is it extraordinary for the world.
When Sylvia Tabusca, an expert in combating crimes at the European Center for Legal Education and Research in Romania, began to search for the IRN Boot, she learned that many people had invested their money in this fraud in many other countries as well.
What surprised them the most was the systematic spread of this fraud.
"During the investigation, we saw that there are quite a few investors involved in it. For example, according to the company's claims, investors in India, the United Arab Emirates, and many European countries have invested their money in it.
According to Sylvia Táborská, "at first, this app works very well, and when they have enough investors who have invested their capital in it from any country, they do not allow them to withdraw the money and start the same work in another country."
Earn Boat presents itself as a company established in the United States with its best credentials. However, when the BBC's fact-checking team tried to verify some information on their website, it was marked with a red flag for danger.
The team did not recognize the person whose name appeared on the website as the founder of the company, and no other details about them were displayed. After this, a complaint was also filed with the police about the company.
According to the company's claims, it works as a strategic partner with institutions like the Massachusetts Institute of Technology, Huawei, and Qualcomm. However, when the BBC tried to verify this with these organizations, they expressed ignorance about Earn Boat and denied any partnership with them.
The company's website does not provide any contact information. When the BBC checked their Facebook page history, it was discovered that until the end of 2021, this company was promoting weight loss products and was being operated from Vietnam and Cambodia.
Earn Boat encourages investors in its app to invite others to join and promises them significant profits. However, with its questionable background and lack of transparency, it raises concerns about its legitimacy.
Who can be saved from deception by making them aware of the risks?" In some countries such as Nigeria and Colombia, local leaders were pressured by the leaders of iEarnBot to hold various events to encourage people to join the app. These leaders were contacted by iEarnBot through the Telegram app.
Andres, a person from Colombia, said that they activated people to join the app, and they still believe that the company is not a fraud, but working correctly. "iEarnBot is registered in America, which suggests that it actually exists," he added.
In their country, refunds were blocked in December 2022, and investors were told that the company is converting its investments into iBU coin, which is equal in value. According to the company's announcement in Colombia, investors were asked to be patient until March when the new coins were expected to be launched in the market. However, people are still waiting to access their money.
"People have taken out loans to invest in it. Some have put money in the company from other sources on the assurance of local leaders. But now people are becoming dissatisfied because these leaders do not have a reassuring answer," said a BBC analyst, pointing to an important cryptocurrency wallet holder.
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