Huge Ponzi scheme in Chiang Mai - crypto firm advertised returns of 15% before the cash dried up

[webfact]

Sanook Thai Caption: Complaints over crypto Ponzi scheme 

 

Sanook reported that there are expected to be thousands of victims in the latest Ponzi scheme operated in the north of Thailand. 

 

Investors in a crypto currency firm were told they could put down anything from 30,000 baht into the millions and would get 10% - 15% interest a month.

 

One investor said he put in 100,000 baht on the advice of a friend in May and got returns at first before his whole investment went south. 

 

Yesterday 20 claimants went to the Department of Special Investigation office in the northern city of Chiang Mai to say they had been defrauded.

 

There are expected to be thousands of people who have lost money in what could be a 1.7 billion baht fraud. 

 

The DSI are investigating and urged other people to come forward with evidence of their losses. 

 

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[Jerno]

Greedy "investors", deserve what they got. Who, with any common sense, would believe 15% per month return was in any way possible, from any investment. They didn't bother asking how such returns would be generated by the Crypto entity?  Idiots. Sheesh.

[howlee101]

6 minutes ago, Jerno said:

Greedy "investors"

Greed is the only reason ponzi schemes continue to work.  The same with the Nigerian marriage scam that many women continue to fall for.  

[prakhonchai nick]

2 hours ago, Jerno said:

Greedy "investors", deserve what they got. Who, with any common sense, would believe 15% per month return was in any way possible, from any investment. They didn't bother asking how such returns would be generated by the Crypto entity?  Idiots. Sheesh.

No sympathy whatsoever. IDIOTS!

[RichardColeman]

Some serious idiots in this country !

 

That said I but lots of collectables here for say 500 baht that I know I can sell in 'The west' for 1,000 and get 100% profit. So large profits are doable, just not by lazy suckers

[Dont confuse me]

Idiots for sure! However personally i have a little sympathy with the poor bar stewards with no education clutching at straws to survive who are often the real victims .

[Lacessit]

AFAIK there is no education in financial literacy in Thailand, or if there is it's probably at the tertiary level.

When I see Thais riding scooters without a helmet, but dutifully wearing masks, it's pretty obvious relative risk is not taught at any level either.

15% a month? I would not be interested if it was 15% a year.

[trainman34014]

Don't laugh; i have an Australian friend who lost around $40,000 in this Scam !

[EricTh]

Crypto is a ponzi scheme but some banks legalize it.

[Tarteso]

They trap them in here like rats in a cage.

[Lacessit]

1 hour ago, trainman34014 said:

Don't laugh; i have an Australian friend who lost around $40,000 in this Scam !

Does your friend have any explanation as to why he thought a 15% return on an investment, that can only succeed if crypto were to appreciate more than 1000% in a year, was realistic?

[eisfeld]

57 minutes ago, EricTh said:

Crypto is a ponzi scheme but some banks legalize it.

"Crypto" is a huge area of computer science and economics. To claim it all is a ponzi scheme is ridicolous. Also claiming banks can legalize something is nonsensical. Lawmakers legalize something. On top legalizing means it had to be illegal before which also does not apply.

 

This is just out right fraud and is nothing special about Crypto apart from the fact that many financially undereducated people think they can get rich easily there. But then again that happens with traditional fiat money as well.

[peterfranks]

1 hour ago, trainman34014 said:

Don't laugh; i have an Australian friend who lost around $40,000 in this Scam !

Must be from Melbourne 5555

[Ctkong]

I personally believe many investors are aware of the huge risk involved in such scheme but because of pure greed, they thought they are able to get out fast enough after reaping the high payout before the scheme collapse.  Early birds would profit handsomely if the scheme run a couple of years.

[hotchilli]

I can understand some poorer people thinking if they invest a little they may make a few extra baht to make ends meet.

But for educated people investing thousands... they deserve what they get.

[brianthainess]

Again....... yawn Zzz ???? 

[EricTh]

17 hours ago, Ctkong said:

I personally believe many investors are aware of the huge risk involved in such scheme but because of pure greed, they thought they are able to get out fast enough after reaping the high payout before the scheme collapse.  Early birds would profit handsomely if the scheme run a couple of years.

Most people are not educated in the financial world and the different 'investment' schemes that is hidden behind good marketing and packaging.

 

The sellers usually tell you the pros (high interest) but not the cons i.e. you could lose all your capital money (just like Bitcoin and gambling)

 

Edited August 26, 2022 by EricTh

[digger70]

What in Satan's Name are the people thinking? 

People's Greed makes them do this ,they are so Gullible /Stupid.

[rickudon]

A bit like the life insurance with profits plans sold in UK back in the 80's. Although they didn't go bust, the pay out was derisory - I was in a plan for 15 years, and got back barely more than i paid in, about one third of projected value. An ordinary savings account would have done 50% better. I now always do my own investing, and only invest in something i can cash in quickly. Only time i lost money was 2008 .... but i waited and at least got the value back to 2008 values 4 years later. My current investment has grown by 60% plus in the last 5 years - in the top 5 funds i monitor - while 20 funds have growth of 10% or less (even negative). Yes, i feel a bit smug!

[sqwakvfr]

"A sucker born every minute", PT Barnum.(he allegedly said this).  

 

Also, Crytpo might become the modern definition of a Ponzi Scheme.  When I was in college the buzz word was "MLM", Multi Level Marketing.  In the end it was just like a Ponzi scheme.  

 

 

[heybruce]

9 hours ago, sqwakvfr said:

"A sucker born every minute", PT Barnum.(he allegedly said this).  

 

Also, Crytpo might become the modern definition of a Ponzi Scheme.  When I was in college the buzz word was "MLM", Multi Level Marketing.  In the end it was just like a Ponzi scheme. 

MLM still exists in Thailand, Amway and something called Sapp888 are examples, and primarily draws in poor people who are desperate to make money.  Of course very few do.