By Markus David
Director of Professional Services
The now infamous iEarn Bot, which promised dizzying returns to would-be traders with virtually no effort, has been exposed as one of the most wide-ranging crypto scams ever. This global crypto fraud deceived people into automatic crypto trading and applied diverse shady tactics to steal money from clients.
iEarn Bot–the Jack-of-All-Trades Crypto Scam
iEarn is a fake trading app that functions as a Ponzi scheme, a pyramid scheme, and also touts its worthless crypto token. Communicating only through shady platforms, the masterminds behind iEarn persuaded people in various countries to act as spokespeople for the app and even organize events to encourage more people to trade with iEarn Bot.
iEarn Bot was intended to appeal to new investors who might otherwise be hesitant to trade cryptocurrency. These customers were assured that the AI-powered app would do all the work for them. Customers were fooled at the beginning as the app showed they were making the kind of incredible returns as promised. Some of them even received modest withdrawals, but this was simply to foster a false sense of security.
Sadly and unsurprisingly, the app was showing completely manufactured returns that didn’t reflect the market. After these early fake gains encouraged customers to deposit more and more money – in some cases, their life savings – suddenly the app experienced technical problems. They had no access to their account. At this point, withdrawals screeched to a halt.
iEarn Bot sometimes tried to persuade customers that this was just a temporary problem. However, soon they blocked their victims and cut off all contact. Then, iEarn Bot would move on to another country and drum up enthusiasm only to cheat people in new regions.
iEarn Bot: the Cryptocurrency Scam with a Global Reach
In Romania, Gabriel Garais, a leading IT expert, influenced the public to trade with iEarn Bot. Many Romanian victims said they never would have taken a chance with cryptocurrency trading in general or iEarn Bot in particular without Garais’s “expert” endorsement. Romanian police are investigating the matter, but iEarn Bot’s fraudulent activities weren’t confined to Romania.
iEarn Bot claims it has 800,000 traders in Indonesia. We hope these scammers are just inflating this number, but there’s no doubt that thousands worldwide have lost significant amounts of money to this fake bot crypto scam.
In Nigeria and Columbia, local leaders organized public events for iEarn Bot, even though they had communicated with the people behind the bot only through Telegram. Investigators are only beginning to understand the international scale of the scam, iEarn Bot may turn out to be one of the largest cryptocurrency scams in history. One wallet alone took $1.3 million from 13,000 people.
iEarn Bot Shamelessly Flaunted Fake Credentials
How were so many people fooled into trading with iEarn Bot? One factor was support from local celebrities, politicians and tech experts. Another was iEarn Bot’s fake credentials, which often weren’t called into question.
iEarn Bot claimed it was based in the United States, although its Facebook account was traced to an IP address in Vietnam that previously was used to sell weight-loss products – which, coincidentally, are often promoted by online scams.
The scammers behind iEarn Bot had the nerve to name someone as its founder – a real person who has nothing to do with the company and is threatening to take legal action. The bot also mentioned several strategic partners such as the Massachusetts Institute of Technology, Qualcomm and Huawei. These legitimate companies and institutions denied they had any relationship with iEarn Bot.
iEarn Bot–So Many Types of Crypto Scams Rolled Into One
One thing we have to say about iEarn Bot, it is a multi-faceted scam. It resembles a Ponzi scheme in the sense that it keeps sucking up deposits and spits out a few withdrawals funded only by other clients. No trading is going on, and any trading information displayed on the bot is fake.
Second, iEarn Bot is a pyramid scheme. It aggressively encourages customers to sign up other people and offers perks for this. A licensed broker doesn’t need to pressure people to find new traders. They attract people because of their solid reputation rather than through running a pyramid scheme.
Third, iEarn Bot is also a fake coin scam. It said it was transforming its USDT investment in favor of its own coin, the iBot. The scammers simply told customers that the two coins had the same value, and unfortunately, many people took their word for it.
Additionally, iEarn Bot employed numerous shady tactics, including providing hyped-up and false guarantees of returns. No legitimate broker can make such promises in a volatile market like cryptocurrency. The few withdrawals it granted to customers carried a 30% fee for the service. This of course is an absurd amount.
Have You Lost Money to iEarn Bot or other Crypto Scams?
If you’ve lost money to iEarn Bot or similar types of crypto scams, it’s important not to give up, but to fight for crypto recovery. MyChargeBack is designed to assist you in your crypto recovery by communicating and educating law enforcement agencies to deal effectively with the international nature of bitcoin scams. We do in-depth research through crypto trace technology and bitcoin forensics. Then, we create crypto reports that our clients can bring to law enforcement to bolster their cases.
In addition, we investigate cases from all over the world. MyChargeBack experts deal with Interpol and other international organizations devoted to fighting fraud. It’s important not to get discouraged. Understand that crypto recovery is possible and contact MyChargeBack experts today.