An alleged Bitcoin pyramid scheme has collapsed while the mastermind behind it has disappeared with over $6 million of investors’ funds.
According to Zimbabwe’s The Sunday Mail, Martin Mhlanga – creator of the alleged pyramid scheme CryptoShares – has vanished, and his South African registered mobile number is unavailable.
CryptoShares also has no known physical address as Mhlanga lured investors through WhatsApp groups promising unrealistic returns.
According to local publisher NewsDay, one of the victims said that they had to pay a $30 sign-up fee with a chance to earn $300 if they successfully refer a new investor. One woman said that Mhlanga told them that those who invested at least $1,000 would receive a payout of $2,000 after a month.
To gain investors’ trust, Mhlanga also set up false claims from fake investors on the company’s social media accounts.
Around late August, Mhlanga reportedly began to lag behind on payments,…