By Evan Spicer
Director of Cryptocurrency Investigations
MyChargeBack
The stories of people who have been exploited by trading scams may have similar patterns, but each one is unique. At MyChargeBack, we see numerous success stories, but the restoration of funds for a New Zealand couple demonstrates that patience and persistence pay off if the MyChargeBack has your back.
A New Zealand couple we’ll refer to as the Beasleys (not their real names) were retirees who simply wanted to make enough money to purchase a home for their married son and daughter-in-law. Sadly, they were led right into a crypto trading scam that laundered their money and transformed the process of tracking their funds into a Herculean effort.
Cryptocurrency has had its ups and downs since its inception, and one of its major peaks was in 2017 when the bitcoin price rose from $1,100 to nearly $20,000. At the time, the prevailing view was that the bitcoin price would keep going up and that people were making millions from speculating on altcoin.
More…and Less….Than They Bargained For
The Beasleys felt certain that crypto investing was the answer to creating financial stability for their children and grandchildren. Unfortunately, as retirees, this involved a sacrifice that would harm their own finances, and they faced years of lost returns in money that otherwise could have been invested by a legitimate broker.
There were red flags from the beginning, but the friendly manner of “George” and “Dan” (not their real names) had them fooled, at least for a while. Although both of them claimed to live in London, they didn’t have English accents.
This isn’t the biggest red flag–maybe they were born somewhere else, but when Mrs. Beasely tried to make small talk with them about Prince William’s wedding, they seemed absolutely oblivious and confused.
An English national not knowing about a Royal Wedding is odd, but not a crime. Still it’s concerning. Nevertheless, any questions about the identity of George and Dan faded away with their friendly manner and promises of huge returns.
Red Flags Start to Emerge
However, there were more surprises in store for the Beasleys. Although they intended to trade cryptocurrency, George and Dan said that they were instead opening a “trading account’ for the Beasleys and their money would be invested in stocks, not cryptocurrencies.
This should have given the couple reason to be suspicious–after all, they wanted to trade specifically cryptocurrencies and were told they would be investing in stocks. George and Dan glossed over this without a comment, which is an indication of their attitude towards their customers.
However, George and Wes buttered up the Beasleys by sending Mrs. Beasley a bouquet of flowers when she came home after a medical procedure. This seems thoughtful, but it was actually a bribe.
When it was time to fund the account, the Beasleys were told that they needed to trade at least a six-digit figure for the best outcome. George and Dan demanded three payments, one to Hong Kong, one to Hungary, and one to Slovakia. This is a huge red flag, but by that time, the Beasleys believed these brokers were legitimate.
The first transfer was made to Hong Kong, however, the bank in Hungary froze the funds as soon as the transfer was made. The Beasley’s bank refused to make the transfer to Slovakia because at that point, it was clear George and Dan were running a fraud.
MyChargeBack Has the Solution
The Beasleys discovered their money was in the hands of crypto fraud. They went to the local police and got Interpol involved but there was no progress in finding out more about George and Dan’s operation or getting Beasley’s funds back.
Fortunately, the Beasleys found MyChargeBack on the internet. Our experts got to work immediately investigating George and Dan’s sham operation. It emerged that George and Dan weren’t merely lacking in crypto trading–they didn’t offer any brokerage services at all.
MyChargeBack experts proved that George and Wes were unlicensed and all funds went right into accounts in various countries. They then further laundered this money to legitimate-seeming services.
With MyChargeBack’s thorough investigation report, the regulator was able to order the bank to unfreeze Beasley’s funds and to track down the money that was stolen by George and Dan. Finally, the Beasleys received £200,000, which included their principal as well as extra money in compensation.
MyChargeBack Will Investigate Your Crypto Case
If you have lost money on the blockchain through unregulated brokers, bitcoin wallet hacking or fake merchants, talk to the MyChargeBack team. Our crypto investigations will provide evidence to bolster your claim.
MyChargeBack has developed working relationships with law enforcement agencies worldwide, have extensive knowledge and experience with crypto tracking and can improve your prospects of getting your funds back.
