A group of 14 British investors reported losses from staking Lyfcoin’s token. They contacted the police, but authorities did not see any signs of a crime, according to Metro.
Sources said they were drawn by Lyfcoin’s promises of high returns. To double their investment, they were asked to contribute funds for five months.
But as the deadline approached, project representatives asked them to wait 12-24 months. Later, investors discovered that Lyfcoin, allegedly valued at $1.60, was not traded on most cryptocurrency exchanges.
Participants in the project claim Lyfcoin is a financial pyramid. They point to a person named Sakhi Rezaiye, who conducted seminars and meetings. Payments for staking the tokens were sent to his bank accounts.
This is corroborated by a WhatsApp conversation from one investor and a payment document showing transfers to the account of M.K. Brothers Ltd, controlled by Rezaiye. The interviewee said he lost £36,500 through this scheme.
Investors estimate their losses at about £100,000 ($130,000). They believe losses across the UK could total £2.5 million ($3 million).
One participant contacted the fraud-reporting body Action Fraud, which forwarded the complaint to the police. However, police found no wrongdoing by Lyfcoin’s organizers.
According to Ethplorer.io, the latest information on Lyfcoin token transactions dates from 10 April 2019.
The first entry on the company’s Twitter account appeared later — on 29 November 2019.
I just posted «What is lyfcoin» on Reddithttps://t.co/NAbEnI14oX
— LYFCOIN (@LYFCOINOFFICIAL) November 28, 2019
Who actually owns Lyfcoin remains unknown. Interviewees are convinced the project is run by a group of people in Britain, although the official site lists a Tallinn address.
As reported, Cred, the Visa ecosystem–integrated crypto-lending platform, stated that it had suffered losses from fraud and suspended operations under the CredEarn program.
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