A survey revealed that investors lost $ 10,000 to the Finiko pyramid scam.
Investors scammed by Russia-based crypto Ponzi scheme Finiko sent an average of more than 720,000 rubles (over $ 10,000) per person to the pyramid scheme, a survey revealed.
According to the medium Bitcoin.com, while the losses officially recorded for Finiko have reached 1 billion rubles (about USD 14 million), some estimates suggest that the total is likely to exceed USD 4 billion (i.e., USD 56 million).
According to Chainalysis, the Ponzi scheme received more than 1.5 billion rubles (more than $ 21 million) in bitcoins in less than two years.
Citizens of Russia, other countries in the European Union and the United States of America are among the people who sent 800,000 deposits to Finiko.
Around 3,300 Victims Got Identified, but the Actual Number Would Be higher
Due to the scale of the crime, the Interior Ministry in Moscow took over the police investigation in Tatarstan, where Finiko resides, and several of its most relevant members got arrested.
At least 200 of the scammed investors have already filed complaints with the Federal Foundation for the Protection of the Rights of Investors and Shareholders, a non-profit organization in Russia, according to reports made by the local media. Marat Safiulin, director of the foundation, 154 affected got surveyed by phone about their investments.
The foundation highlighted that the average financial loss per investor amounts to 724,000 Russian rubles (more than $ 10,000) according to a series of comments.
At least 22% of investors lost amounts that surpassed 1 million rubles (almost $ 14,000), and another 73% sent Finiko at least 300,000 rubles each (more than $ 4,000). More than half of the surveyed victims retired their loans to invest in the Ponzi scheme.
How Finiko Got Promoted
Finiko promoted itself as an automatic profit-generating system. The pyramid was offering people massive profits if they sent their money.
Investors could use the fast, high yields of up to 30% to cover a loan, purchase a car or property at discounted prices, or withdraw cash when needed.
Finiko’s offices in the capital of Tatarstan, the city of Kazan, were first registered in December 2020. Its activities got assigned by the Central Bank of Russia due to some signs of a pyramid scheme in June this year. Despite that, the scam kept bringing in new investors.
The Ponzi scheme stopped dealing with payments in July and eventually crumbled down. The police in the Russian Republic of Tatarstan have already detained various high-ranking Finiko representatives, including the pyramid’s founder, Kirill Doronin, two of its vice-presidents, Ilgiz Shakirov, and Dina Gabdullina.
A series of arrest warrants also arrived for three of Doronin’s associates, Zygmunt Zygmuntovich, and Marat and Edward Sabirov, who managed to abandon the Russian Federation before the investigation started in July.
It is worth remembering that many pyramid schemes are operating today. Therefore, it is vital to be aware of a company that offers extraordinary profits with crypto. It is best to make good research before investing in a failed scheme.
By: Jenson Nuñez
