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Steven Seagal’s Bitcoiin Scam Keeps Hurting Buyers Even Post-Exit

source-logo  cryptovest.com 14 January 2019 08:43, UTC

The Bitcoiin (B2G) initial coin offering (ICO) received a cease-and-desist order in New Jersey, but that was not the end of the scams. Related parties continued to offer various cloud mining schemes, using a veiled pyramid scheme as a referral system, as well as the offering of B2G assets as a payout option.

Despite the cease-and-desist order, B2G continued to exist and was even listed on exchanges, including briefly on HitBTC. As of January 11, B2G has shown up on Exrates, a new exchange offering US dollar pairs. Even after the ICO was ordered to shut down and actor Steven Seagal withdrew his endorsements, the B2G asset announced a form of mining that would continue throughout 2018:

https://twitter.com/FactoryBtc/status/984882280110804992

Cloud mining has long raised doubts about its legitimacy. The B2G asset has confused investors as it is unclear whether buyers would benefit from Bitcoin (BTC) or be paid in B2G coins. Unfortunately, B2G trades at just $0.02, down from $246.51 in the summer of 2018. The asset, which was linked to DragonMining schemes last summer, was used in a manner similar to BitConnect (BCC) in that the coin was both an entry point for new investors and a means of payout.

Beyond the initial mining scheme investment of as much as $1,000, participants may have lost even more considering the price crash of B2G, as well as the withdrawal of the HitBTC exchange.

Since owners of B2G could not easily exchange their coins back, they were effectively drawn into a string of similar cloud mining and exchange schemes, as shown in a lengthy CCN review of the process. Recent social media activity reveals that DragonMining still has affiliated cloud mining offers, which the community views as highly risky. In the summer of 2018, potential B2G buyers were also exposed to dubious exchanges:

https://twitter.com/BA04588620/status/1004875264449392641

Seeking to change B2G led to outright losses:

https://twitter.com/Triker028/status/1026754294090018816

More recent reports point to a connection between B2G ownership and the risk of cloud mining related to DragonMining:

https://twitter.com/JayCorbin6/status/1084521703055785987

While DragonMining produces and sells real ASIC, the presence of the B2G digital asset within the ecosystem unleashed new tiers of scamming, which repeatedly hurt initial backers of the Bitcoiin project. The events surrounding the B2G coin show that even the involvement of regulators is not enough to stop scams. Unlike BitConnect and BCC, this coin still exists and is available for purchase, potentially continuing to cause losses.

by Christine Masters, 2 mins ago
cryptovest.com