LoopX has pulled an exit scam after launching a series of Initial Coin Offerings (ICOs) which earned the startup roughly $4.5 million. The cryptocurrency startup promised to give traders consistent, high returns for investing in a proprietary trading algorithm. According to a cached version of the LoopX website — which has now gone dark — a series of five ICOs were launched which apparently sold out of the platform’s LoopX Coin (LPX) coins. In total, 276,21 Bitcoins (BTC) and 2.446,70 in Ethereum (ETH), were received from investors, and are now presumably lost to them.
The LoopX team said it was formed of “high-performance professionals” which tested their algorithm for over half a year, with “great profits continuously every month.” Now the final, fifth ICO is complete, the LoopX website, Facebook account, Telegram, and YouTube channel have vanished. The LoopX Twitter account has nothing more than a link to The Next Web’s coverage of the scam, having first reported the news. As investors rage across social media platforms including Reddit, in January, a discussion had already taken place which suggested LoopX was a scam. At the time, the user cited a number of problems with the platform which suggested that there was little beyond a fraudulent front.
Read more about the LoopX startup, which turned out to be an elaborate scam, on ZDNet.