Unusual transactions on the Dogecoin blockchain led the community to a discovery of an alleged Ponzi scheme.
At the beginning of July, the Doge community on Twitter noticed a spike in transactions on the Dogecoin blockchain. As scam hunter @CalisCihan told me, most of these transactions were very small.
Following the spam transactions, the community discovered a high yield investment platform (HYIP,) and has a reason to believe this might be a Ponzi scheme designed to drain victims’ crypto wallets. Ponzi investment schemes pay their early investors with money from new investors.
“A large number of small transactions worth 0.0207 Doge were executed on a daily basis supposedly to hide the true nature of the business and the movement of money,” a Doge community member @RepeatAfterVee tweeted.
The discovery
“We have all noticed that the number of transactions has greatly increased. We thought the reason for this was the tipping that the community usually does. @mishaboar [another member of the Doge community] discovered that it was spam, and Salty [@CalisCihan] was able to find out who was doing the spamming through the addresses. I researched the operation of these Ponzi schemes a few years ago, so I immediately knew who they were and how they worked,” @RepeatAfterVee told Cybernews.
While going through hundreds of addresses, serving to fool the trail, @RepeatAfterVee discovered the Dogecoin Address DDU3x2mGdE2vKvJe5usfCR1h3muKHB9bvo. As it turned out, the…
