LoopX Exit Scam

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LoopX

The anonymous team behind LoopX apparently had a new trading algorithm which was working to generate a reliable return (guaranteed), and they needed investors funds. Investors happily sent their funds. The anonymous team disappeared.

This is a global/international case not involving a specific country.

About LoopX

"The LoopX Team was formed in September 2016 of a core group of high performance professionals to build a new kind of trading software based on our own Loop-Algorithm. After testing our algorithm thoroughly over half a year with great profits continuously every month, we can now finally bring all this advantages of our LoopX – Trading Software to the public."

"We are here to help you make money in the emerging market of cryptocurrencies which is projected to grow up to 10 times the size of now until the next year," the company claimed. "The LoopX system gives you guaranteed profits every week thanks to the most advanced trading software out there to date!"

“After developing over months and testing successfully with great profits, we can release now with great confidence the LoopX [t]rading [a]lgorithm,” the LoopX marketing read. “This [s]oftware will give us all the opportunity to make more money online then we could ever do in real life.”

“Our software handles over 10,000 trades per second and calculates over 100 currencies at a time,” it continued. “Always looking for those opportunities to make profits bigger then 10%, which will payed out to our members on a weekly basis.”

"We do not make daily payments since we consider that the margins are smaller. For us the priority is the safety of your investment. It took us little bit over a year to bring you the final product so you can benefit from the most advanced technology too." "A lending project is usually considered risky. Any person who would like to participate needs to understand the risks. However, LoopX has the most trustworthy Team behind the project and is here to help you make money."

"The LoopX team said it was formed of "high-performance professionals" which tested their algorithm for over half a year, with "great profits continuously every month.""

"As many of you have followed and heard from the media this last few days, the EU and especially Germany and France would like to heavily regulate business with cryptocurrencies. Because of this hostile attitude towards this revolutionary technology and the uncertainty about which regulations we facing in the EU, the LoopX team had to make a decision. We spent the last week relocating our company to the crypto friendly environment of Switzerland. We feel safe here and are confident that LoopX has found a home here where we are welcome and can grow as a company in the long term."

"LoopX has pulled an exit scam after launching a series of Initial Coin Offerings (ICOs) which earned the startup roughly $4.5 million."

"The cryptocurrency startup promised to give traders consistent, high returns for investing in a proprietary trading algorithm."

"Now the final, fifth ICO is complete, the LoopX website, Facebook account, Telegram, and YouTube channel have vanished." "The company has since also pulled its website and deleted its social media fingerprint, including Facebook, Twitter, YouTube, and Telegram accounts."

"In total, 276,21 Bitcoins (BTC) and 2.446,70 in Ethereum (ETH), were received from investors, and are now presumably lost to them."

This is a global/international case not involving a specific country.

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.

Key Event Timeline - LoopX Exit Scam

Date	Event	Description
February 11th, 2018	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

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

The total amount lost has been estimated at $4,500,000 USD.

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

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

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?

Ongoing Developments

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

General Prevention Policies

The primary issue was that the anonymous team had no incentive to keep their word, and no verification on their algorithm. Under our framework, firms must be run by teams of known people in a multi-sig, and there would be a requirement of 2 separate industry reviews. A project without a real basis could not launch.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.