With yesterday’s LTC pump, many traders have been talking about the possibility of another moonshot. In our experience, group think generally should be approached with caution, and traders should sort out the facts on their own before making any moves. With the possibility of making or losing a significant amount of money in the game of ltc hot potato, we decided to dig a bit deeper into the “Chinese Ponzi” that we outlined in this post.
Unfortunately, for traders, it looks like the fun might be over for the time being. It appears as if the suspected ponzi actually was a ponzi, and the people who were running it incurred massive losses and are now on the run. With over 400,000 ltc still in this address, we wonder what their next move will be. Without the upwards pressure of the ponzi on LTC, will the market collapse, or will other pumpers come in to take advantage of the hype around the block halving.
The first piece of information to focus on, this post from the group themselves which was made on July 22nd. We understand that it is a bit hard to read, but that’s Google Translate’s fault. You can easily get the idea of what is going/went on, and it isn’t good.
Wusitanluo Network Announcement:
Dear coins circle and investors you are good:
Since litecoin great investment value, recently sought after by the market, trading activity, rising rapidly. Frequent exchange transactions across multiple platforms, leading after the rapid rise, some investors eager to cash in quickly after frequent cause is thrown down.
The company has been the case of the parties conducted a survey research, set up an investigation team for the entire event carried out a detailed investigation. The occurrence of such a huge market fluctuations things, on behalf of the company for failing to deal promptly remind investors of risk and get the best revenue opportunities, deeply apologize! The company will serve as a reminder that in the future the investment process, to better improve service, increase opportunities and investor communications, increase litecoin trading knowledge training. However miss this opportunity, as well as heavy losses to investors caused by currency circle, we must acknowledge the error, it is wrong leadership of the company, things have happened, companies know that no amount of explanation is useless, only adjusted for market development at the same time in favor of the interests of investors all litecoin program. So please rest assured that the majority of investors! The existence of the event management problems, the company to extend my most sincere apologies to the members.
About uproar MLM event Wusitanluo litecoin recent online fund transfer, the company made the following explanation:
1. litecoin – digital currency in silver, five national ministries issued a document has acknowledged the same nature of virtual currency and stamp investment products;
The company did was to maximize the benefits to our own members, members to participate in the store come in the company to do buy low sell credits for the company and members of the benefit, but after the incident that we deeply appreciate the company’s promotion and incentives does have loopholes, the company is now working on improvements, will be promptly corrected, and safeguard the interests of members and coins circle stable and sustainable development. Increase the propaganda and investor training instructions explain litecoin development environment, the company operating conditions, so that investors from different sectors of society, we have a full understanding, differentiate the company is definitely not an illegal pyramid scheme organizations and other institutions. If the company deliberately fraud, no company disclosed the truth, so please credits circle of investors and members of my friends believe that: The company will gradually improve the business long-term orderly and healthy development continues!
The problem for business, we reflect on the comprehensive, currency experts gathered in the circle, the company’s practitioners admire your moral and technical level, you who are veterans, we circle the deficiencies currency, please timely corrected, we would like to fully cooperate for the greatest degree of meeting customer requirements, to achieve a win-win, and let us improve faster. We are willing and credits between companies in the same industry circles to establish a good cooperative relationship; analysis of everyone’s long-term sustainable development of a steady stream of money to bring new impetus to the development circle, currency prices rose only virtual currency using the procedure we have developed a necessary process, we increase investment late, modify extension model allows the company to achieve a virtuous cycle, please rest assured!
Since the 7.10 incident currency Circle in short Zapan cause our losses, we make the following summary: We have never experienced such an event, there is no ability to timely response and to corporate clients who bring serious losses, our market environment is too optimism did not adjust the tempo. About Wright currency fluctuations, we realized: favorable currency price rises for everyone; short only on a small part of speculators to bring short-term profit, most investors can not share the real benefits brought by the development of virtual currency. Many people even do not know the risks of leverage, resulting in greater losses! So our next step will be an effective and mutually beneficial and win-win to stay in business, please credits circle of colleagues and jointly create a harmonious market environment, maintaining good litecoin healthy development is our responsibility!
Here, also deeply grateful to all of concerned friends! In fact, the company was informed that after the incident, in addition to feel very ashamed and apologetic outside, but also gain a more moving and trust, thank the majority of investors have high hopes for the company! The future development of the company, and we closely co-prosperity loss, we already are familiar with the family, so I can better understand that you do not want us to make mistakes in their mood. You were criticized, is the driving force of the company can do better! We will gradually consolidate the business, scientific management company’s business development, allowing companies to develop more robust! & Nbsp; & nbsp; Our company is totally worth everyone has the strength to believe, as the new company litecoin industry, the company has a very strong economic and technical support. Business is like a child, growing up, will inevitably wrestling, make mistakes, then the parents will help one, carefully educate him. The company today, you need to like the parents who help a help, what help us to grow up healthy and strong! & Wusitanluo network announcement!
Secondary Source: BTCMan
Further on in the thread, information about the supposed leaders is posted, along with their pictures.
The Chinese BTC media had been covering the story since earlier in July, more information below:
July 10, 2015, Wright currency prices from a month ago, hovering at 11 yuan, skyrocketing to 54 yuan, or nearly 400%. Investigate its soaring reason, most likely related to a strong sales organization suspected of pulling the disc. After the litecoin surge stirred the entire digital currency industry, in July 2015 at 10pm, litecoin suddenly began to fall from 54 yuan, as of press time, litecoin prices hovering at 27 yuan from top to bottom.
The previous day’s surge, probably only because a video.
Reporter join MLM organizations suspected of QQ group: Wusitanluo – litecoin
Just one day time, group number rose to 435 from 100 people up and down, and still keep up the trend. A large group of files named “Wusitanluo litecoin Fund Projects” “litecoin registration process” file.
Suspected MLM organizations to promote PPT
Wusitanluo litecoin Fund Project Description:
1, sentence description of the project The project requires investors to the market on their own (fire credits net) at market price to buy 500 litecoin, then 500 litecoin Wusitanluo to finance and investment companies, the company returned to 3 per day to 5 litecoin to your virtual currency wallet (fast purse), now return 5, after deducting 10% of the fee actual return 4.5, can be returned litecoin fire credits net trading cash to be held currency to be up.
Note: The contract with the company for 1 year
500 litecoin to the company of the night (the next morning) the return of the company will be able to receive 4.5 credits litecoin is the world’s second largest virtual currency, in China there are 12 exchanges of fire most traded currency net .
Fast is the most secure virtual wallet purse money, safe, convenient and compatible bitcoin
2, to help companies to promote Award
A, all of their recommended straight people can get 50% per person per day
B, straight recommended 10 people became broker (also available in their 5500 litecoin buy directly into the broker)
C, will become a broker, obtain the following rewards:
1–5 dezh dividend of 10%
5% dividend 6–10 dezh
11–15 dezh dividend of 2%
Note: Direct Push 1 get 2nd generation, direct push two people have two generations, direct push three people have three generations, so get up to 15 generations, every day, every day the dividend, too.
Your income = ROI + Promotion Rewards
3, Wusitanluo is a German company, is a diversified financial conglomerate, located at 1156 Forbes Global 2014 companies list, ranked 37 in Germany.
4. What is Wusitanluo litecoin fund?
International litecoin profitable global trading platform to buy low and sell high
5, this model is MLM it?
Your investment in a first, the company received on time if you return the money, proved to be true in the future, who would you most like to pass? You most certainly would like to vote on several accounts under his first order to obtain greater benefits. Their investments much more income than pull people to join.
6, there is no risk of such an investment?
Any investment has risk, but in this era of fast money, to get the maximum benefit is to grasp the opportunity in the short term.
7, was asked: I do not know you, money is how do you cheated?
A: You are mistaken, your money and coins not through my hand, you buy 500 litecoin litecoin directly with your wallet (fast purse) to call the company, I just recommend you to join it, you register Corporate Member When I will use my membership number.
Being thought of these, to be fleshed out later! Other issues your own Baidu, Baidu Post Bar has Wusitanluo it.
This is the latest investment projects, domestic just beginning, very few people do this, have not formed a team like Vicat currency, seize the opportunity to put their achievements as Vicat currency render such a successful teacher.
I am determined to do Wusitanluo first person in China, of course, you can also set up their own team, beyond their own!
OKCoin has been aware of the situation since at least July 11th, but has only made a full statement (that we could find) to their Chinese customers. I.e.: Something that said more than “don’t put yourself in traps”.
They also mention that this is just the latest of their investment projects, and the beginning of domestic projects. What does this mean? We suspect that they may have lost a substantial amount of funds due to their failed pump, and aren’t too convinced that there will be subsequent pumps yet. If anything, we would expect the market to deflate a bit while the ponzi tries to get things back in line, but do they have the buying power to pull themselves out from underwater.
These ponzi masters have gone so far as to imitate a German company, register the .com version of their domain name and put up a fake website in order to cover their tracks.
The companies correct website is: https://www.wuestenrot.de/
The fraud site was: https://www.wuestenrote.com/
Again, from 8btc:
Germany seems to really have the online search Wusitanluo this company, also great. However, and this litecoin MLM is certainly nothing to do. This is the MLM websites http://www.wuestenrote.com/ .
In million net Search Domain Information:
Oh, April 10, 2015 was registered.
However, some people may say is to not promote litecoin MLM ah, ah just registered! !
I continue to dig.
The bigger sites do actually quite bluffing. For example, the login screen can select the language. Very fast hardware thing, after all, is large international companies!
But I chose English actually let me choose it, people look down on the Asia-Pacific do not know English? ? ! !
Then I see the website source.
Develop people to effortlessly Reprogramming a German and English pages, when you want to change the English and German pop up directly not to change!
Yes, it is a direct pop, will not determine the country where ip oh ~
A Baidu thread with the ponzi “founders”, shows they have a very creative way of looking at what they are doing.
We then turned to bitcointalk for information, and found plenty. Here is the most interesting and informative thread:
You can view a video of the schemers promoting here – http://v.qq.com/cover/l/l9njr6tdhnl6nl2.html?vid=a0159sgq8mp
And for those of you wishing to see the ponzi schemer’s presentation (source):
So what do we expect from here? Probably a ltc dump as this news propagates through the west, and traders realize that might be bag hodling for a while. If the ponzi group or another pump team step back into the market place though, we could be in for a wild ride.
The bottom line is that the ponzi pump team didn’t execute their pump as expected, and it appears as if they are now on the run after incurring massive losses. Whether this is true, or FUD to get the ltc price back to a level where they can buy back in and pump is to be seen. With the upcoming block halving, and OKC double witching in September, we have some dates on our calendar to watch.