Cryptos turning red as Austrian “Optioment” scam sends shock waves across the market

According to Die Presse, the fraudulent investment scheme known as “Optioment” defrauded over 10,000 investors in Austria and other European countries. The aggregate loss amounts to 12,000 which is about $115M at the current exchange rate.

The scammers offered their victims generous returns of as much as 4% in the form of weekly interest payments on their deposits in bitcoins. Those who attracted new users were promised additional premiums, which is typical for a classic Ponzi scheme.

Austrian police and the financial watchdog FMA receive hundreds of complaints. The authorities have applied to Interpol to help track down organizers of the “Optioment” scheme. While no arrests have been made so far, the police identified two people who may have been involved in the fraud.

The scandal broke as the European Union financial bodies urge to tighten the cryptocurrency industry regulation and heighten the attention to the companies operating without permission.

Recently the Italian crypto exchange Bitgrail got mixed up in the scandal. The operator lost Nano coins (XRB) to the tune of $170 Million and went bust.

Read more about this case

This development may raise concerns about the credibility of the crypto industry and encourage the regulators еto get tough with cryptocurrency exchanges and service providers to protect investors from scammers and fraudulent activities.