LoopX Startup Pulls ICO Exit Scam and Disappears with $4

A cryptocurrency startup named LoopX has pulled an exit scam after collecting around $4.5 million from users during an ICO (Initial Coin Offering) held for the past weeks.

The LoopX team disappeared out of the blue at the start of the week when it took down its website and deleted its Facebook, Telegram, and YouTube channels without any explanation.

The company’s former Twitter profile now lists only one tweet, a link to a TheNextWeb article detailing the exit scam, but it is unclear if the LoopX team posted this link themselves, or if somebody else claimed the account name after it was vacated.

Victims tracking funds as they dissipate

People who invested in the startup are now tracking funds move from account to account in a BitcoinTalk forum thread, and banding together in the hopes of filing a class action lawsuit.

Before the site went down, LoopX claimed to have gathered $4.5 million of the $12 million they wanted to raise for creating a new cryptocurrency trading mobile app based on a proprietary trading algorithm.

In an email sent to customers last week, LoopX owners made an ironic statement of “We will have some more surprises for you throughout the week. Stay tuned!”

This was probably not the surprise many users were expecting, but some users did see red flags with the entire LoopX operation and tried to warn would-be investors last month, via LoopX’s official Reddit channel.

Right now, the only means of action is for victims to file complaints with local law enforcement in the hopes that an official investigation would be able to track down the startup’s founders and maybe recover some of the funds.

This is not the only ICO exit scam that has taken place this year. In late January the Prodeum ICO closed shop by display an offensive word on its website. Fortunately, that ICO had only raised a few hundred dollars, and people didn’t lose large fortunes.

Defaced Prodeum website

Read more here

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