LoopX ICO Ends in $4.5 Million Theft
The cryptocurrency startup LoopX, which promised users a mobile app for crypto trading based on its own unique proprietary algorithm, has turned out to be a scam. The LoopX developers have vanished without a trace, taking all the funds with them. All of the project’s social media accounts, including Facebook, Telegram, and YouTube, have been deleted. Only an archived version of the official website remains, which had promised investors large and ever-increasing monthly profits.
As early as a month ago, Reddit users warned that the project looked highly suspicious—almost nothing was known about the development team or the so-called “proprietary algorithm”—and that the ICO could be a simple fraud. Unfortunately, few heeded these warnings.
How the Scam Unfolded
The LoopX ICO began in January 2018. The team disappeared after collecting 276.21 Bitcoin (BTC) and 2,446.70 Ethereum (ETH) from investors. In total, the scammers made off with about $4.5 million by selling LoopX Coin (LPX) tokens. Ironically, just a week before vanishing, the developers sent out emails to users promising a “surprise.”
Aftermath and Reactions
According to posts on Reddit and discussions on the BitcoinTalk forum, some victims have already contacted law enforcement, and users are hoping to file a class-action lawsuit. This is far from the first ICO to end in disaster. For example, the Lithuanian startup Prodeum, whose ICO began on January 20, 2018 and was supposed to last until mid-March, also turned out to be a scam. That project collected only a few hundred dollars instead of the planned $6 million, then disappeared. However, according to ICOWatchlist, the scammers were actually more successful, stealing around $500,000. In the end, the only thing left on the once-promising blockchain project’s website was a blank white page with a single word: “penis.”
Earlier, in the fall of 2017, investors in the Confido project found themselves in a similar situation. Users had invested over $370,000 in the startup, but the project disappeared overnight, along with its official website and all social media accounts.