I've managed to get myself tangled up in what I think is a scam? It looks and smells like a scam, quacks like a scam, so it's probably a scam? I'm hoping an internet bro can help me think of a way out of this. This will be a bit long, but I want to provide enough detail to help weed out the BS or real factor.
Lots of mistakes made I think, but I was cold texted to a wrong number. (I know. /facepalm) Started chatting with "Jennifer" (could be catfished here, not clear) and it came up that they had a crypto business. Naturally, being interested in crypto I asked about the kind of business and she said she does short-term buying/selling contracts (like 30 second real time market up / down trades). I mentioned I had some Eth that I had bought awhile back as a long term investment to sit on and it's done nothing but lose value. She insisted short term trading is the only way to go and I will just continue to lose value sitting on ETH while the bottom falls out. I wasn't really interested, as I'm not skilled enough to day trade, but more time went on chatting over many days / weeks-- not just crytpo, just general life stuff and she keeps coming back to this. Sends me screenshots of her trades and profit, etc. If she's scamming me, she's playing a long game.
Finally Jennifer convinces me to try out the short term trades even for a very small amount of seed money to see that this is real. I ask more about it and it's on a platform called GMO (https://app.gmovip.com) so I decide to try it out for a small buyin and check it out. I transfer a very small deposit from Coinbase over to GMO. The site seems sketchy AF, google turns up nothing on GMO, not on app store, it doesn't seem reputable, etc. so I'm VERY VERY skeptical going into this. A couple times a week she would tell me exactly when to trade and when to stop, and adhere to a strict 10% of principle trade. (E.g. have $100 principle only trade for $10 per trade). It seem(ed) legit with a scientific system built around limiting risk. So we proceed to trade and I estimate it's about a 95-98% success ratio with a 40% return. (Trade for $100, profit $40). We typically would do 4-ish trades per "trade node" then stop (her wording for the couple times a week market if favorable). I do a test withdrawl back to Coinbase of $5.00 just to confirm that I can in fact withdraw from GMO to Coinbase (and cash out from there). It worked, the $5.00 showed up to my Coinbase account.
We both do nothing but win time and time again week after week, always 4 trades in a very brief window. One single trade loss out of maybe 30 individual trades. At this point I have become a believer and decide to go ahead and move my ETH (about $18k worth) so I can start making larger trades and up my profits. Gravy train keeps rolling and I start making some decent returns, making more in 20 minutes than I'm making in a week at work.
So Jennifer keeps encouraging me to add more principle balance so I can continue to make more profits. (Potential red flag, but she's right that more principle is more profit and I need to put idle resources to work) So now I'm thinking I need to get more money into this so I can increase my trades. I had $18k sitting in a bank account doing nothing, but it was all the extra cash I had. I decide to go ahead and add this to my GMO account by way of Coinbase (bank account already tied to CB, so just ACH'd the funds to there, then transferred to GMO wallet after clearing). Funds show up on GMO and we keep trading.
With the funds I have put in, + the profits I have made compounding, I'm now making more money in 20 minutes than I'm making in a MONTH of day job. (what could possibly go wrong?) Jennifer continues to keep pressing me to add more funds even though I was comfortable with the amount I was making. She suggests taking out 401k money, getting an online loan, borrowing from friends, etc. anything it takes to increase principle. This starts to throw a red flag for me and I decide I want to cash out my $36k I have invested and then I don't care what happens after that because I'm on "house money". And of course, NOW THE PROBLEMS START.
I try to transfer $15k back to Coinbase and the transaction never shows up on Coinbase wallet but the money is gone from my GMO account. I keep waiting and waiting thinking it just takes a few days, Jennifer assures me to just be patient it can take a few days and it's nothing to worry about. Finally I decide something is wrong and I contact GMO support from their app. They immediately ask to chat with them on Telegram (which seems weird and maybe another red flag?) so I do. Jennifer tells me this is normal and that she had to do the same thing on a previous account and that if I just do what customer service is asking they will unfreeze my assets. She is encouraging me to go find the $20k somehow (like it's just under the couch money or something) and send it to open up my funds.
They inform me that my account has been flagged as high-risk for illegal activity by the "Wind Control System" and that my $15k withdrawal transaction is on hold pending account verification. The verification consists of a self photo holding ID (this seems real, have had to do this on other platforms), 3 months bank account statements (red flag?) AND A $20,000 FUND VERIFICATION?! (SAY WHAT?!) I tell them I've already transferred $36k from another wallet to GMO, so that should cover that $20k requirement, but they say that "the funds you transferred are only used for your transactions and have nothing to do with verifying your account" (direct quote). I sent them the photo ID and bank statements, and they acknowledge 2 of 3 steps are complete, but that I must send $20k more to fully verify the account and then they will unlock my funds. So to recap, I put all my extra money $36k into this, made successful trades that put me at nearly $100k (I don't' even care about the profit, if I could just get the money I put in back out) and they are saying that I must put another $20k into GMO for them to verify my identity/account and allow me access to my funds. I literally have NO MONEY left to give, it's all there, and they won't let me cash it out. They are even holding the money I moved over from Coinbase, not just the profits I made trading on the platform. $20k might as well be $1million, it's a distant sum of money I have no way to get.
I now believe I'm being scammed and I'm probably just F'd. Even if I had $20k, which I don't, it seems foolish to give GMO even more of my money. Of course throughout this I'm giving Jennifer the "WTF?!" and she just keeps telling me to do what they say and I'll get the money (maybe she's in on it, I don't know). Finally I ask Jennifer if she is willing to help me with the $20k and I will immediately send her the money back as soon as it's unlocked WITH INTEREST (It's $20k to unlock $100k afterall). Jennifer says she doesn't have that much liquidity, but that she could manage to give me $5k to help if I could come up with the other $15k (I still can't, no money left as stated above). The fact that Jennifer offered to give me $5k of her money gives me a tiny bit of hope that maybe this isn't a scam afterall, but for all I know Jennifer could be a GMO clown punking me.
So there it is, hopefully someone made it through that story and has some thoughts or experience to help me determine if this is a scam or not. I honestly don't have $20k anyway, but could slowly work towards getting it if it really meant being able to get my money back out. Jennifer tells me I could immediately cash everything out the moment my account was verified. They GMO seem interested in knowing how long it will take me to get the $20k and pressing urgency on it, which also seems scammy.
Does anyone out there have any ideas of what I can do here?
Should I just accept that I have been scammed of all my savings? Classic case of "that only happens to other people". Oof.
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