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Joined Oct 24, 2016
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Cryptocurrency Lender DavorCoin Defrauds Investors Out Of Millions

After promising big returns, Scottsdale, AZ-based cryptocurrency lender DavorCoin left investors with virtually zeroed out accounts – following a similar wipeout of BitConnect.

The scheme was simple; investors would lend the cryptocurrency operators real money, for which they would receive interest on their loans in the form of proprietary “DavorCoins” (DAV), which promised an interest rate as high as 48%. The site’s “Lending and profit calculator” suggested at the end of January that an investor lending $30,000 in davorcoin who agrees to lock funds up for 120 days may earn $513 per day, $3,591 per week, $15,390 per month, and $104,217 upon “capital release day” on August 23, 2018.

The company was also offering a “WELCOME TO THE ‘BE A MILLIONAIRE’ LENDING LOTTERY!!!” in a Medium.com post, adding “We will offer an amazing $1,000,000 to someone from the Davor community and many more prizes!”

Sounds legit, right?

Things were going swimmingly until cryptocurrency prices began to crash in January. After BitConnect was shut down for “illegally and fraudulently offering investments in a cryptocurrency lending program” subject to the Securities act, DavorCoin responded, saying “This does not change anything for us,” adding that DavorCoin is now “the number one lending platform in the world !!”

Shortly thereafter the price of DAV went from $177 to under a penny in less than three weeks – amid receiving a Cease and Desist from the state of Texas, alleging a variety of fraud offences in connection to DavorCoin’s offerings – as well as “misleading and deceptive statements.”

And then people had issues selling their DAV coins:

Investors on Facebook and Twitter bemoaned their losses. One investor who had loaned the company $4,000 said they were left with just $9. Another said that their $20,000 loan dissolved into $23.50 upon cashout.

On February 7, DavorCoin issued a statement ending their lending program, stating “There will be certainly winners and losers in this project, as in many high-risk investments. This is also true for the whole cryptocurrency market.”

According to a December survey, over 18% of respondents said they bought bitcoin on credit. Of those, 22% said that they had not paid off the debt despite virtual currencies reaching all time highs. And of those who hadn’t paid back the money borrowed to purchase crypto, 70% said they believed that owning Bitcoin is worth the interest expense.

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4 comments

  1. MX2101

    Can these users be real? How could anyone be dumb enough to send money to this?

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  2. NotGekko

    There’s a sucker born every minute

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    • 0 Deem this to be "Fake News"
  3. sarcrilege

    fools and money should never be together

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    • 0 Deem this to be "Fake News"

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