In 2023, Crypto4winners (C4W) captured the cryptocurrency community's attention by promising high returns in a bear market. The involvement of Luc Schiltz, with a history of fraudulent activities, cast immediate doubt on C4W's legitimacy. Our relentless investigation has been aimed at unveiling the truth behind their operations, suggesting a scam potentially worth $100 million.
Initial Red Flags and Investigations of Crypto4winners
C4W's promise of high returns, absent clear investment strategies, signaled potential Ponzi scheme characteristics, compelling us to undertake an in-depth blockchain analytics investigation. This scrutiny revealed wallets closely associated with C4W's operations, indicating a sophisticated scheme to mask fund movements and deceive investors. We pinpointed several key wallets, including BTC, ETH, USDT and USDC Pools, which raised legitimate concerns regarding the platform's operations.
The Heart of the Scam: Tracing Funds and Assessing Impact
Our financial investigation into C4W unearthed wallets directly tied to the platform, still containing considerable sums. A deep dive showed that C4W funneled funds primarily to major exchanges like Binance, Kraken, Crypto.com, and Coinbase, obscuring asset traceability. Notably, we identified several wallets linked to C4W:
- ETH Pool: 0x1944FfDf587aC92AeB31b82d1701f5e9f5525c1B
- USDC Pool: 0x81489867d495B335DA53B97706a17D2D8485fBf0
- USDT Pool: 0xB8C879626B553159a6a1eB8e3dec3C502ba560bF
- cryptoluxguy.eth:0xaFF9EAFc5465Ad655a8f23fC26AC40A73A06b2A3,allegedly controlled by Luc Schiltz
- BTC Pool: bc1q7x5k6c00ml2su8nyjjjzr5q0muacla2362sqnm, a cluster of 2,805 addresses
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The movement of investor funds to exchanges significantly hindered our ability to track the scam's full extent. With an estimated $100 million at stake, approximately 4,000 individuals were lured by the prospect of easy profits.
Navigating the DeFi Landscape with Caution
The jurisdictional and legal challenges in addressing C4W's fraudulent activities underscore the complexity of combating crypto fraud. Initiatives in Luxembourg and Sweden, pivotal to C4W's operations, mark the beginning of legal recourse. This case serves as a critical reminder of the risks present in the crypto space, with C4W exploiting exchanges as "mixers" to undermine blockchain transparency. The final whereabouts of the funds remain uncertain.
This episode underscores the critical need for due diligence, regulatory vigilance, and collaborative safeguarding efforts within the crypto ecosystem. As we continue to monitor C4W and similar platforms, we aim to contribute to a more secure and transparent environment for crypto investors. The story of Crypto4winners is a cautionary tale, highlighting that offers too good to be true likely are.
