A bunch of unusual ones Dogecoins DOGE/USD picked up by the DOGE community has led to the discovery of a Ponzi scheme operated by a UK based company.
What happened: Popular members of the DOGE community, including mixed breeder, RepeatAfterVee and CalisCahintraced a series of spam transactions on the Dogecoin blockchain to uncover a crypto scam, he reported CyberNews on Tuesday.
That unusual tip in DOGE transactions was first observed on July 17th. Back then, market participants attributed the spike in daily transactions to tips from the meme sharing feature on the MyDoge wallet.
Big increase in the last days of #dogecoin transactions.
“Unfortunately” there seem to be some automated accounts that send thousands of transactions per hour.
A very approximate list I’ve created over the past 2 hours using a (messy) script:https://t.co/bweERs82oG
— Mischabeber (@mischabeber) July 18, 2022
Upon closer inspection, well-known Dogecoin messaging service Mishaboar discovered that the transactions were likely spam.
Further analysis by CalisCihan and RepeatAfterVee revealed that the wallet behind these spam transactions was operated by Huilo Invest LTD HYIP.
Huilo markets itself as a “high yield investment platform” offer users 9.9% hourly return in 13 hours.
Huilo Invest is a UK registered company, a Ponzi scheme that allowed people to invest Dogecoin in their scam scheme in addition to US Dollars, BTC, ETH, LTC.
As expected, the owners of Huilo stole money from people and stopped working with THAT company. pic.twitter.com/L7pVOPVc1r
— Vee (@RepeatAfterVee) August 1, 2022
The DOGE community was able to reveal the true nature of the platform that is cheating users out of US dollars, Bitcoin BTC/USD, ether ETH/USD and Litecoin LTC/USD next to DOGE.
9 projects use the same IP.
The first 3 even have the same page design. pic.twitter.com/3eFlcwnr94— Vee (@RepeatAfterVee) August 1, 2022
Although the last DOGE spam transaction was sent two days ago…
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