Crypto Pyramid Scam Dupes Thousands of San Pedro Residents

As many as 20,000 San Pedro residents have fallen victim to a crypto pyramid scheme called La China, which promised significant short-term returns from what are now known as fake cryptocurrency investments.

Lawyer Adolfo Erdaire noted on Tuesday that the first complaints will be filed soon. “La China” — which has ties to the Knight Consortium Foundation — has left many San Pedro residents in a financial tailspin. They invested all their savings into what seemed like an opportunity of a lifetime.

However, it soon became clear that this scheme was merely a classic pyramid. Here, the scammers collected from new investors and paid out to early adopters. At least 50 victims have already sought legal advice, as the pyramid’s collapse threatens to wipe out their hard-earned assets.

Crypto Pyramid Scheme Leaves Residents in Financial Turmoil

The scam reportedly began with a viral online ad, where the Knight Consortium promised returns of up to 2% per day in U.S. dollars. As it gained popularity on the Internet, many residents joined on their own accord, lured by the promise of easy money.

Its collapse left San Pedro in chaos. “There are people who have not been able to withdraw money for three weeks, and because they have not been able to do so, they are worried and that worry has turned into fear,” Erdaire said.

Erdaire’s team will be filing a complaint citing alleged fraud under 171 and 173 of the criminal code. They will investigate whether there are any criminal offenses related to biometric data collection. They will also strive to determine who is responsible for the audio recording, in which an individual claims they cannot withdraw funds because of the chaos.

Residents Divided Over Knight Consortium Amid Fallout from Crypto Scandal

San Pedro is wrestling the fallout from this scandal, and residents are still to decide on the legitimacy of the Knight Consortium Foundation. While some have been victims of the crypto pyramid scheme, others support the organization’s mission to promote cryptocurrency investment.

Additionally, Canadian crypto trading platform ezBtc recently disclosed that it misappropriated over $9.5 million in user funds, mainly in Bitcoin and Ether. The British Columbia Securities Commission (BCSC) stated that ezBtc’s founder, David Smillie, diverted these assets for personal use, including expenditures on online gaming sites and personal accounts, from 2016 to 2019.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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