CoinGain Ponzi Scheme

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CoinGain

CoinGain.app is a website with no product or service. Apparently they've created a crypto trading bot which can generate profits, but they need other people, (specifically random members of the public) to provide funds for some reason. The website appears to have mostly targeted poorer countries. The CoinGain.app website appears to be offline at the moment. It's unlikely any funds have been recovered.

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

About CoinGain

"COINGAIN - Welcome to the future of investing. Get fully passive earnings up to +110 daily profit. Join us NOW Download App."

"Coingain.app offers easy-to-use and legit investment program, where you can invest any deposit amount from $1 and get absolutely passive hourly earnings." "Our self-made cryptocurrency trading bot shows excellent results at a short working distance, but, term and percentage of earnings are always different." "Our participants earn in total 102.5%-110% per day, with terms 24 - 72 hours. Such a spread of numbers is obtained due to different values of robot trading results."

"Coingain.app is a developer and distributor of Trading and Exchange Bots, where any registered participant can make profit from our exchange-trading robot and earn hourly profit from 1.45% to 4.6% daily during a random period of time from 24 to 72 hours. All earnings are fully passive and do not require you to do any kind of work or effort." "Coingain.app specialists created a stock bot in early 2019 and tested and improved its work for almost a year. The main difference from other analogues is the technology of machine learning, which allows you to improve the methods of trading bots every cycle."

"Participants receive a share of our trading profit." "We use only trusted trading strategies." "Trading bot works without interruptions 24/7." "Create new deposit with your favorite currency and any amount you want." "Wait for deposit term expired (from 24 to 72 hours) and request withdraw or create new deposit. All payouts comes instantly to your personal wallet."

"For example, you deposited $100. Our system randomly selects a number between interval of 102.5 and 110 daily profit, as well as a random number in interval of 24 and 72 hours deposit term (inclusive). For example, this is 110% daily profit in 24 hours. After that system count your deposit clear profit from hourly earnings = 110%/24 hours=4.583%. So this is means that you deposited $100 and will get $4.583 (=4.583%) every hour until you get $110(=110% daily) of total profit."

"We are using unapproachable DDoS-protection and secure SSL-encryption. All operations are absolutely anonymous and safe." "Our support teammates are always ready to answer all your questions or suggestions. Please, contact us via your favorite social networks or e-mail, and we will try to answer you as fast as it possible." "Our site is located on a dedicated server with higher level protection from DDoS, injections, hacks and other types of attacks. We also use additional traffic filters from cloud services. In addition, all data is encrypted by SSL and fully anonymous!"

"Coin Gain is claiming to have a team of professional, qualified, and experienced experts who are familiar with the crypto trading procedures. Yet, the CoinGain.App does not provide any information about the owner of the company or the people running the platform." "CoinGain is a highly suspicious company that is hiding details about its origin. The website even provides a fake address of an office in London to seem like a legitimate platform. However, further research shows that the address is fake."

"Coin Gain provides no information on its website about who owns or runs the company. Coin Gain’s website domain (“congain.app”) was privately registered on August 30th, 2020. [As of December 7th, 2020,] Alexa ranks Argentina (8%), Venezuela (8%) and Egypt (5%), as the top three sources of traffic to Coin Gain’s website."

"The business model of CoinGain.App seems to be all about the affiliate membership and getting people to invest in the company. It entices people to buy the company’s packages by claiming that once you become an affiliate of CoinGain, you will not have to do anything. Instead, you will get an opportunity to sit back and relax while the modern trading bots do all the work for you."

"Coin Gain has no retailable products or services, with affiliates only able to market Coin Gain affiliate membership itself." "The entire business model and income structure of CoinGain is similar to any other Ponzi scheme. The company does not have any external source of revenue. Moreover, there is no proof that even its own crypto trading bot actually exists."

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 - CoinGain Ponzi Scheme

Date	Event	Description
March 6th, 2021	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 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?

General 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.

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.