UK Police Warn Against Coscoin Crypto Scam After Huge Losses

UK police have issued a stark warning against the cryptocurrency platform Coscoin, which is embroiled in a £215k scam. This alert follows numerous reports of fraudulent activities connected to the platform, which promised high investment returns.

Rising Concerns Among Investors

The recent BBC report shed light on Coscoin’s operations, which claimed to utilize advanced AI for quantitative trading. Despite its enticing promises to double investments, the platform has been under scrutiny due to a pattern of complaints across the UK. Investors have faced challenges retrieving or accessing their funds since late November, leading to widespread concern.

A particularly troubling case in northeast England was where 78 individuals reported combined losses of approximately £214,869. This average loss of around £2,900 per person has prompted the North East Regional Organised Crime Unit to act. The unit’s analysis suggests that Coscoin, believed to be based in Washington, USA, exhibits characteristics of a Ponzi or pyramid scheme, particularly in its recruitment-focused operational structure.

UK Police Advise Caution

Detective Inspector Paddy O’Keefe, from the economic crime division, has advised the public to be cautious of overly lucrative offers. He warns against new scams targeting previous victims, promising to recover lost investments. This advice is crucial in preventing further losses in similar fraudulent schemes.

The situation has been particularly distressing for individuals like a former Nissan employee. After leaving his job to manage a cryptocurrency app WhatsApp group, he felt manipulated into being “a puppet” for Coscoin. His story reflects the broader impact of this scam on the community.

As the situation unfolds, authorities urge anyone who believes they have been a victim of this scam to report to Action Fraud. This step is vital for the police to gather intelligence and prevent similar frauds in the future.

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