LoopX made off with $4.5 million of investors’ money, it’s been reported. The ICO, which took place from 10 – 24 January, 2018, was abruptly cut short when LoopX’s homepage and social media footprint vanished, along with 276 Bitcoins and 2,556 Ether.
The company had promised to earn backers money with a propriety trading algorithm.
The signs were there
According to Coinist, one of only a handful of sites still displaying original LoopX sales copy, “The LoopX Team was formed in September 2016 of a core group of high performance professionals to build a new kind of trading software based on our own Loop-Algorithm.
“After testing our algorithm thoroughly over half a year with great profits continuously every month, they can now finally bring all this advantages of our LoopX – Trading Software to the public.
“They are here to help users make money in the emerging market of cryptocurrencies which is projected to grow up to 10 times the size of now until the next year.
“The LoopX System gives users guaranteed profits every week thanks to the most advanced Trading Software out there to date! They do not make daily payments since we consider that the margins are smaller. For us the priority is the safety of user’s investment.
Other LoopX copy reads:
“After developing over months and testing successfully with great profits, we can release now with great confidence the LoopX [t]rading [a]lgorithm,” the LoopX marketing read. “This [s]oftware will give us all the opportunity to make more money online then we could ever do in real life.”
“Our software handles over 10,000 trades per second and calculates over 100 currencies at a time,” it continued. “Always looking for those opportunities to make profits bigger then 10%, which will payed out to our members on a weekly basis.”
“This was not thinkable in the normal financ[i]al sector, but has become reality in the cryptoworld.”
ICO scams happen all the time but this latest LoopX scandal is one of the worst in recent memory. This is mostly because the scam was conducted by the company hosting the ICO, rather than via a phishing scam, which is usually the case.
Phishing scams are where a third-party obtains an ICO's mailing list and tricks potential investors into sending funds to a fraudulent cryptocurrency address.