Poland Deems DasCoin a Ponzi Scheme, Seizes $11.6 Million
In an ironic twist, the self-described “currency of trust,” DasCoin, has found itself on the wrong side of Polish law. It has been reported that the police have seized $11.6 million from the platform.
According to the International Business Times, authorities allege that DasCoin is, in fact, a Ponzi scheme offering fraudulent investment opportunities. The platform was promoted by Net Leaders, whose founders are also on the radar of Polish authorities. Based on their finding, police have seized $11.6 million from DasCoin.
DasCoin Reportedly Broke the Law
While law enforcement in the country has had their eye on the platform since September 2017, it was only in September this year that a criminal investigation was approved. A Polish consumer advocacy group, Trading Jam, took their concerns to the police and alleged that the platform could be in breach of certain laws.
It was during this month that district prosecutors in Warsaw said:
Throughout the country, a number of people are disadvantaged by the sale of goods via sales through a website (Net Leaders). License for the purchase of a number of products and services offered under the DasEcosystem system, including the extraction of cryptocurrency called DasCoin.
DasCoin’s website still appears to be active though, with the platform even announcing the successful launch of their innovative product, Das33, which claims to be the “world’s first vetted ICO platform.” The currency itself is also still visible on CoinMarketCap at the time of writing, albeit with no market cap or circulating supply.
Ponzi Schemes Appear to Be the Scams of Choice
If the owners of the platform are charged, they could find themselves in a very expensive situation. Live Bitcoin News recently reported that Gelfman Blueprint, Inc (GBI) and CEO Nicholas Gelfman were liable to pay restitution of more than $2.5 million after it was determined that the platform was operating as a Ponzi scheme.
The former CEO of Gaw Miners, Homero Joshua Garza, was also charged with running a Ponzi scheme and defrauding investors out of $9.2 million. Garza was subsequently sentenced to 21 months in prison.
Polish authorities have not disclosed what they intend to do with the money that they’ve seized or the details of their investigation, such as how deep the alleged scheme goes, at the present time. In addition, it is still unclear as to what charges will actually be brought against DasCoin.
Do you think that DasCoin is running a Ponzi scheme? Have you traded in DasCoin or made use of any of their services? Let us know in the comments below!
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