DualMine Misleading Payouts

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DualMine

DualMine claims that you can invest your money and earn a guaranteed payout through their cloud mining service. While the promised payout is lower than many schemes, this has all the hallmarks of a common ponzi scheme. The CEO has little presence outside of the registration. The returns are "guaranteed". There is no evidence of a real product or service. They don't show any mined blocks. Reviews online indicate that most users are unable to get their invested funds out. Any funds they do get out, come out in the native CRT token, which is nearly impossible to convert into the original coins. It does look like most users of the service are simply out of luck to get their funds.

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

About DualMine

"Multiply your Bitcoin, Ethereum, Litecoin and Dogecoin. Start mining and increase your crypto capital now!"

"Unique product offering the mining of the most profitable cryptocurrencies in the cloud. You can mining one of them or both at the same time. Your hardware is already running and waiting for You!"

"Our service makes mining accessible to everyone. We believe in the future of cryptocurrencies and we love to be part of this growing community. Our dual mining system is suitable for those who are new to the world of cryptocurrencies and looking for easy way to invest money."

"With us You will have more coins tomorrow than yesterday."

"The site says that the company offers a cloudmining service for Bitcoin and Ethereum which are the two foremost coins. However, the company did not provide any visual images of its servers or any hardware."

"Nevertheless, Dualmine has other features that would convince a skeptic that it may be carrying out cloudmining services. Furthermore, its reward is not as outrageous as those of the traditional scam cloudmining services which points to the possibility that this company is genuine."

"According to the website, the founder and CEO of Dualmine.com is Lukasz Borzeszkowski. A background search showed that Borzeskowski shows that he is the Director of Cryptonit Limited that was registered with the Company House on 27 February 2018."

"The Pole gave his address as 20-22 Wenlock Road, London, England, N1 7GU. Cryptonit Limited registration number is 11227919." "The office address, 20-22 Wenlock Road, London, England, N1 7GU is an office service address that businesses use as contact when they do not have physical offices in London or want to conceal their real locations."

"Sadly, the investors do not have a clue about the mining process. We do not know the type of machinery they have or the scrypts they use. Moreover, they haven’t shared any details about the location of the mining centres."

"Without knowing the above discussed key factors, it definitely is not worth indulging with their service. Remember, mining is not an easy way to earn money."

"The absence of social presence for the CEO, unprofessional marketing strategy, ease with which they give away hashpower and the fact that the official address used by the company is a virtual office address point to the suspicion that this may be a Ponzi scheme that depends on affiliate referrals for income."

"Dualmine is a scam. They will ask you to invest in valid crypto currency, BUT payout is only made using “Cryptonits” (CRT). A Cryptocurrency they themselves developed. As of today, January 27, 2021… cryptonits is trading at 1CRT = 0.00000039 BTC, which is around $0.012 (at the exchange rate of $31,366.30/BTC."

"[I]t says you can "BTC, ETH DOGE" etc... and it shows on your dashboard, your profit in those currencies. But when i comes to getting paid out, you will find that you can only get paid out in CRT tokens, which is their own currency they created, and youre only allowed to withdraw 3000CRT (about$30US) at a time."

"There is no list of blocks they have mined. They have a page of supposed proofs and they don’t include anything that proves they’re mining? Bitcoin requires bitcoin miners. Where’s proof they have any?"

"If you look at the contract, the required ROI will be around 8 months. And if you take the profit, you have to wait for 2 years and double 3 times your initial capital. You don't get big profits if you deposit a small amount of money."

"But if the deposit is large enough, the benefits can be felt. But I don't recommend it because the risk of investing in cloud mining with a large amount of money is very risky and you have to be really prepared to lose all your money."

“They are real scam; As soon as you invest, they change the rules for you, by making your payouts so small and restricted, then after a short period they make it impossible to collect your earnings at all”.

“They steal very easily. I deposited some CRT on their site a month ago, but it was not added to my account on the site. No matter how many tickets”.

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 - DualMine Misleading Payouts

Date	Event	Description
January 20th, 2022 12:00:00 AM	Main Event	Expand this into a brief 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

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?

Prevention Policies

Experienced cryptocurrency users can typically tell what's fraudulent, however this takes practice, so it's always best for new participants to err on the side of caution, and avoid investing in most services.

To prevent such ponzi schemes, our framework provides that 2 industry reviews should be conducted of each proposed new service, by knowledgeable organizations. Regular reviews should also be conducted to ensure that all customer assets are fully backed, which prevents ponzi schemes since the key component is that funds are no longer backed.