The crypto world’s biggest Ponzi scheme has taken things to a whole new level. In a blog post on its website, WestLand Storage claims to be hosting a conference on an island that it allegedly owns. However, the image it posted to accompany the post is in fact of petit saint Vincent, an island in the Caribbean owned by G. Philip Stephenson.
While WestLand Storage might be renting the island for the conference from G. Philip Stephenson, it certainly doesn’t own the island. The Ponzi scheme has already been called out by huge numbers of the crypto community and it’s facing some pretty strong allegations.
The Most Accepted Ponzi Schemes
For some bizarre reason, people are lauding WestLand Storage as a brilliant blockchain project. It claims to take the money you give it and invest it into real estate. which it then rents out and pays you dividends from. However, there is no physical proof that it actually does this and people gain rewards for referring friends based on how much their friend invests – this stinks of a Ponzi scheme. Despite this, people are signing up in their droves and depositing more money.
Ethereum Ponzi Scheme Uncovered
Ponzi schemes are running wild in the crypto world, and MetaMask has unveiled yet another. MetaMask has flagged 333ETH as a Ponzi scheme and has warned its users to stay away. Yet, it’s in a sticky situation. If it forces its users to never use the decentralized application (dApp) then it would appear centralized and people would lose faith in it. On the other hand, if it does nothing it will be accused of not looking after its users – quite the situation it has on its hands.
America Clamping Down On Crypto Ponzi Schemes
American law enforcement has started clamping down on Ponzi schemes and has finally put Homero Joshua Garza behind bars. Garza was the founder of GAW Miners – a company that allegedly specialized in designing, developing, and selling crypto mining hardware – which was shut down for being a Ponzi scheme, He received 21 months behind bars and was ordered to pay $9.2 million in restitution to investors – a just punishment for a scammer.
Ponzi schemes aren’t limited to the crypto world. Unfortunately, they permeate the current financial system and this experience has made the masterminds smarter. The relative wild west environment of crypto markets also helps scammers run Ponzi schemes, as there is less regulation. As more regulations come into place, Ponzi schemes such as WestLand storage will be brought to justice and investors will be compensated – it’s just a matter of time.