Millions of cryptocurrency investors have fallen victim to a growing number of multilevel marketing scams over the recent years. In 2018, victims lost about $1.7 billion to companies that falsely promised to multiply their capital within a short period. The criminals used plenty of old-school and new tricks to lure investors into purchasing worthless cryptocurrencies. One of such methods were to attach the scam with a reputable entity, such as a firm, to gain investors’ trust.As it seems, Binance, the world’s largest cryptocurrency exchange, involuntarily became a tool to propagate one of such Ponzi companies. Nugget’s News Co-founder & CEO Alex Saunders pointed out in a tweet that a Singapore-based pyramid scheme, known as Cloud Token, was using Binance’s reputation to tempt its potential investors.Saunders posted an image wherein Cloud Token’s chief technology officer Ronald Aai was claiming that Binance had invited him to appear as a panelist in the next Consensys event. The shady firm portrayed the development as a “huge boost in credibility for Cloud Token.”“Cloud Token is the latest pyramid scheme doing the rounds in Australia promising high monthly returns with their trading bot. Apparently working with Binance,” Saunders said in a tweet addressed to Changpeng “CZ” Zhao, the CEO & co-founder of Binance. The post appeared first on NewsBTC
