Bitcoin Interchange Exit Scam - Revision history

Azoundria at 17:58, 2 May 2023

2023-05-02T17:58:49Z

← Older revision		Revision as of 11:58, 2 May 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bitcoininterchangeexitscam.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/bitcoininterchangeexitscam.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	Bitcoin Interchange was a Zimbabwe-based investment platform which promised investors 35% returns. They had offices in multiple Zimbabwe cities including Harare and Chitungwiza. Investors lost over $766k through investing.		Bitcoin Interchange was a Zimbabwe-based investment platform which promised investors 35% returns. They had offices in multiple Zimbabwe cities including Harare and Chitungwiza. Investors lost over $766k through investing.

	This exchange or platform is based in Zimbabwe, or the incident targeted people primarily in Zimbabwe.		This exchange or platform is based in Zimbabwe, or the incident targeted people primarily in Zimbabwe.<ref name="newsday-5663" /><ref name="techzim-5664" /><ref name="coinfomania-5665" /><ref name="internetproclub-5666" /><ref name="allafrica-5667" />
	<ref name="newsday-5663" /><ref name="techzim-5664" /><ref name="coinfomania-5665" /><ref name="internetproclub-5666" /><ref name="allafrica-5667" />

	== About Bitcoin Interchange ==		== About Bitcoin Interchange ==
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	!Description		!Description
	\|-		\|-
	\|November 18th, 2020 ~~12:00:00 AM~~		\|November 18th, 2020
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			Having a large scale of investments occurring outside of any oversight and no widespread way to validate if a scheme is legitimate means that victims often have few resources to turn to when making decisions. Greater resources and education could greatly diminish the success of such plans.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

			== Platform Prevention Policies ==
			{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

	== Prevention ~~Policies ==~~		{{Prevention:Regulators:End}}
	Having a large scale of investments occurring outside of any oversight and no widespread way to validate if a scheme is legitimate means that victims often have few resources to turn to when making decisions. Greater resources and education could greatly diminish the success of such plans.

	== References ==		== References ==

Azoundria at 17:30, 17 February 2023

2023-02-17T17:30:48Z

← Older revision		Revision as of 11:30, 17 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bitcoininterchangeexitscam.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bitcoininterchangeexitscam.php}}
			{{Unattributed Citations}}

	Bitcoin Interchange was a Zimbabwe-based investment platform which promised investors 35% returns. They had offices in multiple Zimbabwe cities including Harare and Chitungwiza. Investors lost over $766k through investing.		Bitcoin Interchange was a Zimbabwe-based investment platform which promised investors 35% returns. They had offices in multiple Zimbabwe cities including Harare and Chitungwiza. Investors lost over $766k through investing.

	This exchange or platform is based in Zimbabwe, or the incident targeted people primarily in Zimbabwe.		This exchange or platform is based in Zimbabwe, or the incident targeted people primarily in Zimbabwe.
			<ref name="newsday-5663" /><ref name="techzim-5664" /><ref name="coinfomania-5665" /><ref name="internetproclub-5666" /><ref name="allafrica-5667" />

	== About Bitcoin Interchange ==		== About Bitcoin Interchange ==
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	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
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	\|-		\|-
	\|November 18th, 2020 12:00:00 AM		\|November 18th, 2020 12:00:00 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
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	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $766,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
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	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
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	== References ==		== References ==
	[https://www.newsday.co.zw/2020/11/bitcoin-investors-lose-millions-to-fraudster/ Bitcoin investors lose millions to fraudster - NewsDay Zimbabwe] (Jan 15)		<references><ref name="newsday-5663">[https://www.newsday.co.zw/2020/11/bitcoin-investors-lose-millions-to-fraudster/ Bitcoin investors lose millions to fraudster - NewsDay Zimbabwe] (Jan 15, 2022)</ref>

	[https://www.techzim.co.zw/2021/11/us30-million-lost-to-ponzi-schemes-this-year-heres-how-you-can-spot-these-scammers/ US$30 million lost to Ponzi schemes this year, here's how you can spot these scammers - Techzim] (Jan 15)		<ref name="techzim-5664">[https://www.techzim.co.zw/2021/11/us30-million-lost-to-ponzi-schemes-this-year-heres-how-you-can-spot-these-scammers/ US$30 million lost to Ponzi schemes this year, here's how you can spot these scammers - Techzim] (Jan 15, 2022)</ref>

	[https://coinfomania.com/investors-lose-million-to-bitcoin-scheme/ https://coinfomania.com/investors-lose-million-to-bitcoin-scheme/] (Jan 15)		<ref name="coinfomania-5665">[https://coinfomania.com/investors-lose-million-to-bitcoin-scheme/ https://coinfomania.com/investors-lose-million-to-bitcoin-scheme/] (Jan 15, 2022)</ref>

	[https://www.internetproclub.com/forums/topic/bitcoin-interchange/ Bitcoin interchange ? - Ask General Questions - Internet Pro Club] (Jan 15)		<ref name="internetproclub-5666">[https://www.internetproclub.com/forums/topic/bitcoin-interchange/ Bitcoin interchange ? - Ask General Questions - Internet Pro Club] (Jan 15, 2022)</ref>

	[https://allafrica.com/stories/202111080574.html Zimbabwe: 10,000 People Lose U.S.$32 Million in Pyramid Scams - allAfrica.com] (Jan 15)		<ref name="allafrica-5667">[https://allafrica.com/stories/202111080574.html Zimbabwe: 10,000 People Lose U.S.$32 Million in Pyramid Scams - allAfrica.com] (Jan 15, 2022)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bitcoininterchangeexitscam.php}} Bitcoin Interchange was a Zimbabwe-based investment platform which promised investors 35% returns. They had offices in multiple Zimbabwe cities including Harare and Chitungwiza. Investors lost over $766k through investing. This exchange or platform is based in Zimbabwe, or the incident targeted people primarily in Zimbabwe. == About Bitcoin Interchange == "Phinea..."

2023-01-25T19:13:21Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bitcoininterchangeexitscam.php}} Bitcoin Interchange was a Zimbabwe-based investment platform which promised investors 35% returns. They had offices in multiple Zimbabwe cities including Harare and Chitungwiza. Investors lost over $766k through investing. This exchange or platform is based in Zimbabwe, or the incident targeted people primarily in Zimbabwe. == About Bitcoin Interchange == "Phinea..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bitcoininterchangeexitscam.php}}

Bitcoin Interchange was a Zimbabwe-based investment platform which promised investors 35% returns. They had offices in multiple Zimbabwe cities including Harare and Chitungwiza. Investors lost over $766k through investing.

This exchange or platform is based in Zimbabwe, or the incident targeted people primarily in Zimbabwe.

== About Bitcoin Interchange ==
"Phineas Chakanyuka, the alleged brain box behind the" "Bitcoin Interchange Zimbabwe" "scheme, had offices in Harare and Chitungwiza, Zimbabwe. A large number of investors were from these cities." "It is alleged that clients [were informed] that they would earn high percentage profits from investment." "The investors had allegedly promised profits of 35% after every two weeks on the initial deposit."

"They included offices at Freirn House situated at corner Speke Avenue and Harare Street and others at LAPF House, corner Chinhoyi Street and Jason Moyo Avenue, respectively."

"OVER 10 000 investors mainly from Harare and Chitungwiza, who invested between US$100 and US$300 000 in a Bitcoin scheme, were left counting their losses after the scammer closed shop without warning.

"I checked their website there are some functions that are not working. Like if you check the footer the social links are not working. Seems as if they don’t have a social proof. What I mean by social proof. There are little to no one talking about this business on social sites. Maybe is a new company I don’t know. Any bitcoin investment of this nature may not end well. If you decide to participate make sure you participate with money that you are prepared to lose. See people need conviction that it works. The first time you may invest $10 like you said if you get paid you would want to invest more and more."

"Chakanyuka allegedly closed all his offices without prior notice or warning to his clients. He also did not provide any means of contact as his mobile was unreachable, thus leaving investors counting their losses." "He claimed he had problems with the police and the Reserve Bank of Zimbabwe."

"43 people reported being swindled of US$765,935." "Some 43 people were left counting their losses after Bitcoin Interchange Zimbabwe Private Limited, represented by someone calling himself Paradzai Muchenga, swindled them of US$765 935."

"Efforts to get a comment from Chakanyuka were fruitless as his mobile was not reachable."

"He, however, sent a message on his various Bitcoin Interchange WhatsApp groups."

Part of the message read: “Our most valued clients. We are pleased to announce that we are still progressing very well. Our system upgrade was completed successfully. We are continuing to work tirelessly to resume operations. We had indicated that we will open on November 7 to November 14. However, there are still a few requirements that we are yet to complete on our side with our broker, the Reserve Bank of Zimbabwe and the police.

“Thank you for your continued patience in our very last phase towards official opening next year. Any inconvenience caused is sincerely regretted. Bitcoin Interchange is here to stay. Please note that your funds are available and safe. Once we get the greenlight we will pay everyone”.

"One of the investors, Peter Munyai, said he sold his house before lockdown and invested in the scheme."

“I am stressed. I sold my house and invested and now this guy is nowhere to be found. We are organising ourselves so that we make an official police report. Other disgruntled investors have already reported him to the police,” Munyai said.

National police spokesperson Assistant Commissioner Paul Nyathi said they were yet to receive a report from aggrieved parties.

“I haven’t received such a report at the moment. I will definitely give you details as soon as I get that information,” he said.

This exchange or platform is based in Zimbabwe, or the incident targeted people primarily in Zimbabwe.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Bitcoin Interchange Exit Scam
!Date
!Event
!Description
|-
|November 18th, 2020 12:00:00 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
Having a large scale of investments occurring outside of any oversight and no widespread way to validate if a scheme is legitimate means that victims often have few resources to turn to when making decisions. Greater resources and education could greatly diminish the success of such plans.

== References ==
[https://www.newsday.co.zw/2020/11/bitcoin-investors-lose-millions-to-fraudster/ Bitcoin investors lose millions to fraudster - NewsDay Zimbabwe] (Jan 15)

[https://www.techzim.co.zw/2021/11/us30-million-lost-to-ponzi-schemes-this-year-heres-how-you-can-spot-these-scammers/ US$30 million lost to Ponzi schemes this year, here's how you can spot these scammers - Techzim] (Jan 15)

[https://coinfomania.com/investors-lose-million-to-bitcoin-scheme/ https://coinfomania.com/investors-lose-million-to-bitcoin-scheme/] (Jan 15)

[https://www.internetproclub.com/forums/topic/bitcoin-interchange/ Bitcoin interchange ? - Ask General Questions - Internet Pro Club] (Jan 15)

[https://allafrica.com/stories/202111080574.html Zimbabwe: 10,000 People Lose U.S.$32 Million in Pyramid Scams - allAfrica.com] (Jan 15)