Bitisis, a digital currency exchange based in Iran, has been accused of pulling an exit scam with investment capitals garnered from Chinese residents through the Ponzi scheme. This drew the attention of law enforcement agencies in the country, as they have begun investigating the case.
Bitisis allegedly operated as a Ponzi scheme
Following a recent report by 8BTC, the operators of Bitisis advertised their supposed Ponzi scheme to Chinese investors through different social media platforms such as Douban and Zhihu, including Baidu. They lured investors by promising them massive arbitrage opportunities.
Before the operators pulled the Bitisis exit scam, it enabled users to exchange their Bitcoins to their native token dubbed IRRT, after which it would be converted again to the US dollar-backed stablecoin, USDT through their so-called high premium. However, the withdrawal process is tedious and involves many thresholds.
Bitisis exit scam fails as funds got frozen
The reports on Bitisis exit scam began after the investors reportedly received messages which noted that the exchange had halted its business activities. This drew the attention of the Chinese police, who are investigating the alleged Bitisis exit scam case at the moment, according to the report.
The exchange operators, who are allegedly from china, tried to launder the funds by transferring them to three wallet addresses held with major digital currency exchanges. However, Bitisis exit scam could not work as planned, as the disgruntled investors were able to get the funds frozen.
The victims reached out to the exchanges on the case. After carefully analyzing the addresses, the exchanges confirmed the transfer and frozen the funds. Meanwhile, the scammers are said to be connected with other fraudulent platforms based in many countries. For instance, they are reportedly involved with the Venezuelan “bit-ven.com.”