As if hacked exchanges and Ponzi schemes were not bad enough, lately there have been another kind of bad actors cropping up in the cryptocurrency ecosystem- exit scammers.
Crypto Brahma, who emerged as a social influencer and prominent investor, for running a paid membership group called Moon Club, confessed that he did a pool raise and decided to margin trade with the contributors funds. A source quoted a Twitter user who goes by the name Crypto Arnie saying, “He liquidated 1700 ETH ($270k). Deleted Twitter, Discord and other social media. Says he is sorry and “he will return funds in 5 months” – lol.”
Discord Deleted. TG Deleted. Twitter Deleted. Crypto Brahma leverage traded some pool funds for Elrond and got Rekt. #Crypto_Brahma
See you in 5 months he says LOL. pic.twitter.com/E2A0vBo41E
— The CryptoArnie (@The_CryptoArnie) April 30, 2019
The source added, “I normally don’t post drama – but as I also have previously done pools I find this is absolutely fucking disgusting. Have a few friends who got hurt by this – well Brahma hopefully you will visit prison very soon.”
The mail sent by Crypto Brahma expresses his contrition for losing contributors’ money by saying, “During our recent ICO pool, at a certain point, I got greedy and I felt like using the funds for margin trading at a low leverage. If I make profits, I can keep them or even share them with the contributors like I often do. In that moment, I felt like an opportunity that needs to be tested. Unfortunately the $1000 pump triggered a stop loss at a price, that was quite substantial loss to take.”
He expressed regret for breaking the trust of his contributors and added that in the next two months he would probably try to return all the lost ETH “with interest”. He added that he needed a stress-free environment to trade in and said he would be back in 5 months. He also said he would be available through emails.
Although, time will tell if Crypto Brahma will be back or not, atleast the person conveyed his regret at losing money better than some other players on the scene. Last year, in April, SaveDroid was one such company which raised more than $50 Million through an Initial Coin Offering and Private Funding. However, instead of fulfilling its promises, the company and the CEO fled with all the money put in by the investors.
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