According to reports, iEarn Bot, a cryptocurrency trading app, has left thousands of investors empty-handed after losing their savings.
This is considered to be one of the most significant crypto scandals to date, with experts highlighting the potential risks of investing in this new and highly volatile market.
While trading in cryptocurrencies can offer the promise of high returns over a short period, the lack of regulation and oversight has led to a growing number of fraudulent activities in the industry.
Sadly, it appears that iEarn Bot is just one example of a larger trend, where unscrupulous operators prey on the gullible and the inexperienced.
As the crypto market continues to attract more attention, law enforcement agencies have issued warnings about the growing number of scams and recommend that investors conduct proper due diligence before making any investments.
A Scam that Affected Numerous Investors
The story of Roxana, a Romanian investor who lost hundreds of euros to iEarn Bot, is unfortunately not unique.
The company promised high returns through its artificial intelligence program, but as Roxana explains, things took a turn for the worse when the app went into maintenance mode and withdrawals were frozen.
Despite the professional appearance of the app, Roxana found herself unable to withdraw her investment and her money disappeared without a trace. This experience is one shared by many others who trusted in the promises made by iEarn Bot.
What makes this situation even more troubling is the fact that the app was sponsored by Gabriel Garais, a leading IT expert in Romania, which gave it a sense of credibility and legitimacy.
As a result, dozens of high-profile individuals, including government officials and academics, were convinced to invest in the app, only to find themselves facing significant losses.
The iEarn Bot scandal serves as a stark reminder of the risks involved in investing in the largely unregulated world of crypto.
It is worth keeping in mind that scams like iEarn Bot are not unique to Romania or any other specific country. They can happen anywhere in the world, and it is up to investors to stay vigilant and protect themselves from potential losses.
Giving People a False Sense of Security
Despite the claims by Gabriel Garais that he too lost his savings to iEarn Bot, many investors like Roxana feel that his sponsorship of the app played a significant role in their decision to invest.
The fact that a reputable teacher was associated with the company gave them a false sense of security and trust, leading them to invest without conducting proper due diligence.
This situation is not unique to Romania, and as Silvia Tabusca discovered, iEarn Bot has affected people in other countries as well.
What is perhaps most concerning about this scandal is the scale of the operation, and how many people were impacted by it.
The iEarn Bot case serves as a stark reminder that even those with significant knowledge of the market can fall victim to scams and fraud in the cryptocurrency industry.
iEarn Bot mentors, who communicated only through Telegram, motivated local leaders in certain countries like Nigeria and Colombia to organize recruiting events.
Andres, who is based in Colombia, actively participated in recruiting individuals to join the app and still trusts the legitimacy of the company.
He asserted that the app was registered in the US and was paying. However, withdrawals were halted in Colombia in December, and investors were informed that the company was converting their investment into USDT.
Final Thoughts
Investors were advised to wait until March when the new coin was scheduled to be officially launched. Nonetheless, people are still awaiting access to their money.
Andres, one of the victims, stated that people took out loans and invested. Many people were impacted, as they utilized money from alternative sources. As local leaders remained unable to provide answers, people grew frustrated.