TL;DR: A trader known by the handle @hitsXBT or LÈON has apparently exit scammed with at least 53 BTC from a fund the anonymous trader also associated with cryptocurrency exchange BitMEX. “He had promised to send out his fund’s ‘Xmas promo’ profits by 15:30 UTC today,” another anonymous observer altered. “No profits were sent. He has deleted all his TG secret chats and changed his account to this as a parting joke.”
Trader Who Created BitMEX BTC Fund Exit Scams with $380,000
To cryptocurrency veterans, by now it’s a well-worn scheme. Invest in the trading acumen of a fund manager and watch the profits soar. All need be done is to gather enough collective deposits to grease trade liquidity, and the speculator does her magic. The pitch usually involves a lockup period where depositors expect to not have access to their funds in order to allow trading execution. That given time expires, and the principal along with some interest is dutifully returned … minus a cut for the trader’s trouble, of course.
As stealthbomber10 (who helped reveal the scam) explained, “Essentially he was offering a service where you send him your btc to be locked up for a certain time period, he trades with it, then returns the profits to you after taking a cut for commission.” Indeed, a screen capture of a Telegram post from @hitsXBT on December 22nd, 2019 suggested things were going very well. The fund was at the time just hours away from payouts, @hitsXBT claimed, describing the evolution of having opened fund participation to a couple dozen investors and then eventually doubling due to demand. The exchange BitMEX had no official connection @hitsXBT, however.
“We are right now almost full,” @hitsXBT urged then. “46 / 50 spots have been taken. This is the *Absolute LAST Call* for those who want to join!” The promotion was quite detailed, separating larger and smaller investors, updating with new hype every few days as the due date neared, creating a sense of urgency and fear of missing out. “People on #CT may remember that he was posting amazing rates of return for his trades on twitter, then lashing out when questioned about it, then privatizing his account,” stealthbomber10 reminded.
“He has blocked anyone from re-opening a secret chat with him, and since he canceled all his secret chats, whatever data was in those chats is now gone per Telegram policy.” Evidently, stealthbomber10 uploaded the chat room’s history and started a Telegram group “for anyone victimized by the fund.” All addresses associated with @hitsXBT have been emptied. Victims in the group are attempting to find @hitsXBT’s identity. Victims are claiming hundreds of BTC stolen, but a screenshot seems to confirm at least 53 BTC were in @hitsXBT’s possession at the time of exit. BitMEX has not issued a public statement.
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