United Kingdom law enforcement agencies have issued serious warnings about Coscoin, a cryptocurrency investment platform. This advisory comes after a series of reports accusing the platform of fraudulent operations.
Coscoin, also known as Cos or Cosetek, has been marketing itself as a leader in artificial intelligence-based quantitative trading. The platform works by enticing potential investors with promises of substantial financial returns, claiming to double their investments.
Despite these attractive promises, a worrying trend has surfaced, with numerous investors across the UK reporting their inability to withdraw or access their funds since late November.
A particularly distressing case has emerged in the north-east of England. Here, 78 individuals have collectively reported losses of around £214,869, which averages to approximately £2,900 per victim, according to police records.
Responding to these multiple fraud claims, the North East Regional Organised Crime Unit has issued an urgent public warning.
Investigations into Coscoin’s operations, believed to be based in Washington, have exposed characteristics similar to those of a Ponzi or pyramid scheme. Notably, the platform encourages users to recruit others, a common trait of fraudulent schemes.
Detective Inspector Paddy O’Keefe, who leads the economic crime division, conveyed important insights in an interview with the BBC.
He stressed the importance of doubt in financial engagements, pointing out that offers seeming too good to be true usually are. Additionally, he cautioned the public against new scams targeting previous victims with the false promise of recovering lost investments.
This call for attention reminds the public to safeguard against further misleading practices.
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