Victor Ugochukwu · Oct 27, 2020 . 6min read
Crypto Ponzi, Banana.Fund to Refund $6.5 million to Investors
About 417 investors claim to have lost a combined 481 bitcoin, worth almost $5.5 million today, to Banana.Fund
By Victor Ugochukwu · Aug 4, 2020 . 5min read
The prosecutors in the District of Columbia has filed a lawsuit against the operator of a crypto Ponzi, Banana.Fund in a bid to refund investors who invested in a scam fund.
Prosecutor filed the lawsuit dated July 29 aiming to take over the account of the defendant. Although the suit did not identify the defendant, a Coindesk report alleges he is a British national, Richard Matthew John O’Neill aka “Jo Cook.”
Apparently, Jo Cook had cooked up a Ponzi scheme selling it as a crowdfunded business development company. The scheme claims to scout and helps early-stage startups with funds as well as operational transparency to their seed investors.
Banana.Fund has been in operation as far back as 2017 where O’Neill told CoinTelegraph that Banana.Fund would “use blockchain for what it is good. And by that, he means for implementing transparent and irreversible global transactions.”
Consequently, about 417 investors claim to have lost a combined 481 bitcoin, worth almost $6.5 million today, to Banana.Fund. Therefore, the U.S. Secret Service’s (USSS) in their suit proceeds to seize about 482 bitcoins (BTC) and 1,721,868 tether (USDT) from O’Neil. In fact, USSS had a year before now frozen O’Neill’s Poloniex account. They did this as a move to stop him from laundering the funds even further.
O’Neil earlier announced Banana.Fund was a failed project but still gave investors hope of a refund.
According to the Coindesk report, O’Neil had announced in January 2018 to his victims that Banana.Fund is a failed project. O’Neil claimed he used his trading skills to ride the wave. Therefore he can refund investors triple their original investment in USDT, a stablecoin. Obviously, he failed to do just that.
Banana.Fund is just another Ponzi scheme which in its case defrauded investors, some of which knew how risky the business was. Earlier, we reported on the Chinese Police arresting those behind Plus Token Ponzi. Investors lost up to $3 billion in Plus Token perhaps one of the biggest Ponzi schemes.
Victor Ugochukwu · Oct 26, 2020 . 5min read