Unusual Dogecoin (DOGE) Transactions Leads To Ponzi Scheme Discovery

Zinger Key Points
  • On July 17, DOGE transactions saw an unusual spike to a one-year high.
  • Members of the DOGE community traced these spam transactions to a U.K.-based Ponzi scheme
Unusual Dogecoin (DOGE) Transactions Leads To Ponzi Scheme Discovery

A series of unusual Dogecoin DOGE/USD picked up by the DOGE community has led to the discovery of a Ponzi scheme run by a U.K.-based firm.

What Happened: Popular DOGE community members, including MishaboarRepeatAfterVee and CalisCahin, traced a series of spam transactions on the Dogecoin blockchain to uncover a crypto scam, reported CyberNews on Tuesday.

The unusual spike in DOGE transactions was first observed on July 17. At the time, market participants attributed the surge in daily transactions to tipping from the meme-sharing feature on the MyDoge Wallet.

Upon taking a closer look, prominent Dogecoin news account Mishaboar discovered they were likely to be spam transactions.

Further analysis by CalisCihan and RepeatAfterVee revealed that the wallet behind these spam transactions was operated by Huilo Invest LTD HYIP.

Huilo markets itself as a “high yield investment platform” offering users 9.9% hourly returns in 13 hours.

The DOGE community was able to uncover the true nature of the platform that was scamming users out of U.S. dollars, Bitcoin BTC/USDEthereum ETH/USD and Litecoin LTC/USD in addition to DOGE.

Although the last DOGE spam transaction was sent two days ago, RepeatAfterVee highlighted that the IP address registered to the scammers account is currently in use by 9 different projects.

“Good job gentlemen,” commented DOGE cofounder Billy Markus on Twitter. “Sucks that the jump in transactions wasn’t organic but alas.”

Posted In: dogecoinHuilo InvestPonzi SchemeCryptocurrencyNewsMarkets

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