AirBit Club: A $100 million encryption Ponzi scheme

This story tells you why the “guaranteed returns” in the encryption circle are all eyewash.

Case Review: Pablo Rodríguez, the co-founder of AirBit Club, has just been sentenced to 12 years in prison, plus 3 years of probation, by a U.S. court. This ongoing global eyewash case involves more than 100 million dollars.

How deep is the strategy?

In 2015, Rodríguez and Dos Santos, under the banner of “Encryption Mining Club,” promised members “mining profits + daily interest.” To appear professional, they held flashy exhibitions and presentations in various locations around the world to attract investors to purchase various membership qualifications.

Victims log into the backend to see their “profits” growing - but it's all eyewash. The reality is: no mining activity is taking place. This money goes directly into the pockets of the scam gang, to be used for lavish spending.

What's even worse is that when the victim wants to withdraw funds:

• Encounter various excuses and delays
• Withdrawal fees are set to more than 50%.
• The account was inexplicably closed.
• Also fabricated the lie that the “losses” were caused by the COVID-19 pandemic.

Lesson for Retail Investors: Any crypto project that claims “guaranteed returns” is a red flag. Real mining and trading do not require recruiting others, nor will they give you “passive income” every day. Simple and blunt promises often hide the biggest traps.

Such cases are still unfolding in the encryption circle, just under different disguises. The first step to protecting your wallet is to learn to recognize these classic pyramid scheme tactics.