LoopX Startup Pulls ICO Exit Scam and Disappears with $4.5 Million (bleepingcomputer.com)

Catalin Cimpanu, writing for BleepingComputer: A cryptocurrency startup named LoopX has pulled an exit scam after collecting around $4.5 million from users during an ICO (Initial Coin Offering) held in the recent weeks. The LoopX team disappeared out of the blue at the start of the week when it took down its website and deleted its Facebook, Telegram, and YouTube channels without any explanation. People who invested in the startup are now tracking funds move from account to account in a BitcoinTalk forum thread, and banding together in the hopes of filing a class action lawsuit.

Comments

Dumbasses

[registrations_suck]

HA, HA!!

Link to BitcoinTalk forum

[xxxJonBoyxxx]

Here's the link to the BitcoinTalk forum our useless editors failed to provide:
https://bitcointalk.org/index.php?topic=2521307.0

I have to admit: it IS pretty funny!

Re:Darn

[Anonymous Coward]

I can help you with that. First, we need a retainer for a lawyer. You can pay with VillLoseX coins. There will be a ICO soon. Buy all you can. Then when we win a trillion dollars they will be paid out in Fakerium coins. You'll need to buy some of those to set up an account. As you know, sometimes people will take all the real money you used to buy fake money, so I highly suggest buying a substantial amount of WorthlessCoin in case one of your other accounts is compromised. Whatever you do, keep buying XCoins!

ICOs

[sexconker]

Every single ICO is a scam. You're investing money into a a shitty alt coin or a shitty fake coin running on a shitty alt coin (Ethereum), with the promise that you can take the shitty alt coin or shitty fake coin and resell it to some other investor later down the line, exchange it for a decent coin, and then exchange it for regular currency.

There's not even the pretense of investing in an actual platform or currency, you're investing on a do-nothing proxy built on top of one, and you're subject to the dangers of both.

If the person running the ICO bolts, you're screwed.
If the person running the ICO somehow isn't an outright scammer, but nonetheless fails to get their honest attempt at a project off the ground and into profitability, you're screwed.
If the crypto currency the ICO is pegged to declines in value, the ICO itself has just declined in value (they keep their coins in the blockchain as a sign of good faith to potential investors - until they abscond / quit).
If the crypto currency the ICO is pegged to increases in value, you've lost out on that increase since you traded one type of coin for a proxy running on top of it.
If the ICO's coin never gets picked up by a major exchange, you won't every be able to profit from it even if you're way up on paper.
If the ICO's coin or the crypto currency the ICO is pegged to get banned by governments, exchanges, or payment processors, you're screwed.

Re:PT Barnum Was Right

[rudy_wayne]

Funniest part of this is someone posted on Reddit a month ago that they had been digging into this company and found a lot of red flags.

A fool and his not-really-money are soon parted.

Re:Good

[jwhyche]

Well what do you know. I was dead wrong. Someone is making money off this bitcoin thing.