A crypto trader from Australia by the name of Stefanos Papanastasiou is being sued by his clients for a staggering $20 million after his alleged revolutionary crypto trading algorithm failed to work. The argument stands that Papanastasiou mis-sold his trading algorithm – promising that it couldn’t fail and would generate massive returns – or that he never had built one in the first place. Either way, Papanastasiou is in huge trouble and is facing more than just a simple lawsuit from angry investors.
An Algorithm Gone Haywire
Crypto trading algorithms are simple, automated programs that will buy at set levels and sell at set levels, handling all aspects of trading so you can focus on other aspects of daily life. In 2017, Papanastasiou alleged that he created a world-class trading algorithm, that would predict the next pump and the next dump, meaning his algorithm would be able to generate huge profits with next to no market knowledge required at all. This grandiose promise gathered a lot of interest from high net worth clients, bagging more than $20 million in deposits. However, either the algorithm went haywire and made bad trades or it never existed as the money is now completely gone and investors are banging on Papanastasiou’s door demanding their money.
A well-known Australian drug trafficker by the name of Mark “Bomber” Thompson who has been accused of ecstasy and methamphetamine distribution is one of the plaintiffs in the case. Thompson allegedly invested over $1 million into Papanastasiou’s algorithm and has yet to see a penny in return. However, where Thompson acquired the $1 million is still unclear, meaning Papanastasiou could be investigated for helping Thompson launder illegally acquired money.
Making Your Own Algorithms is Easy
There is no need to fork over your hard-earned cash to a random person from the internet, especially when making your own algorithm is so simple. In this day and age, you can sign up to Mudrex and create your own algorithm within minutes and without the need for technical knowledge. Algorithms on Mudrex have proven to be effective and reward traders with juicy profits – so stop using shady guys from the internet to trade for you.
Unfortunately, scammers are trying to take advantage of everyone in the crypto world – including those without huge stockpiles of cash for a rainy day. A new Kenyan Bitcoin scam known as Velox 10 Global persuaded Kenyans to invest a minimum of $100 a month into their platform to see returns of up to $4,000 a month. Shortly after taking hundreds of innocent people for their entire life savings, Velox 10 Global vanished from the face of the earth, taking everyone’s money with it.
It’s still unclear whether investors will get their money back from the Papanastasiou case, but there is plenty of evidence mounting against him. It’s not up to the Australian courts to decide whether he is guilty or not – hopefully the duped investors get what they deserve.