Originally Syndicated on May 10, 2024 @ 3:54 am
The COINTED network is increasingly being targeted with allegations of systemic fraud. The network reaches far beyond Christopher RIEDER and Charli AHO.
We have reliable information that Eduard ORLOFF, Charli AHO, and Daniil ORLOV—the close associates of the late COINTED management and investors—remain active in the mining sector. For example, we discovered that the mining servers had relocated to Austria’s Vorarlberg region. It is thought that COINTED would have closed down and merged all of its prior Bitcoin mining operations into the new Austrian facility.
Furthermore, it’s said that development is underway on new crypto-ATMs. The funds of COINTED’s investors and clients are being used for other endeavors. It will be up to the prosecution authorities and the asset administrator to ascertain whether or not this asset transfer was done properly. We have statements from miners who invest but do not now get paid for their servers.
The Negative Aspects of the Crypto-World
Regretfully, there are a lot of scams and fraudulent schemes in the cryptocurrency sector. It appears that one of the most active participants in this “dark” side of the cryptocurrency market is the Austrian COINTED:
In the cryptocurrency crime scene surrounding OPTIOMENT, where hundreds of investors are said to have lost up to EUR 100 million (an amount that is yet unknown), COINTED founder Christopher RIEDER is identified as a suspect.
The payment partner for the fraudulent OPTIOMENT crypto-scheme was COINTED. The FIAT funds of investors were converted into bitcoins and sent into the OPTIOMENT network via COINTED’s crypto-ATMs.
Given that OPTIOMENT appears to have involved investors’ untaxed monies as well, it may possibly fall under the loose category of money laundering. Nevertheless, the process pertaining to the crypto-ATMs was non-compliant with KYC/AML, therefore one hears.
The OPTIOMENT issue was extensively covered by the Austrian national broadcaster ORF, along with the extent of any potential participation on the part of COINTED and its inventor.
But in April 2018, the cops conducted a late raid at the COINTED office. The outcome is yet unknown. Given the complexity of crypto-crime situations, this is hardly surprising. For instance, there aren’t any validated bank account details.
Christopher Rieder, Eduard Orloff’s Partner in Crime, Went on Extended Trips with Victims’ Funds
COINTED CEO Christopher RIEDER on a lengthy business trip during the OPTIOMENT crisis, according to a statement made by his attorney in April 2018. At this point, one could wonder why RIEDER is not being dealt with more consistently by the public prosecutor’s office.
The presumption of innocence is applicable, of course, but it also seems to make sense to take into account the unique risks associated with the darkening danger in the context of cryptocurrencies and blockchain technology. Protecting investors should be the top priority under the current conditions.
About Eduard Orloff’s Fraud
Through the issue of their Ethereum-based Cointed Tokens (CTDs), COINTED supposedly raised more than $4 million from investors during their Q4 2017 Initial Coin Offering (ICO). In reality, they had hoped to generate over $100 million from initial coin offerings (ICOs), but that plan fell through. Some partners and individuals have previously accused COINTED of fraud at the time of the initial coin offering (ICO), but at least the ICO could go on because of a cordial “alternative news” campaign conducted in conjunction with the largely uncritical Austrian media outlet “Brutkasten.” Regretfully, the majority of the accusations made in the meantime proved to be accurate.
ICO white paper version 1.0 only misled investors regarding a number of issues. At first, COINTED asserted that it had acquired Crypto Unity OG and was running its own cryptocurrency mining operation that was “green.” A cryptocurrency mining operation called Crypto Unity OG raised money from investors to buy mining hardware. We have seen the agreement the investors made with Crypto Unity OG.
Was Eduard Orloff’s COINTED Just Another Mining Scam?
In actuality, there was no takeover, and the company Crypto Unity OG never did and currently does not belong to COINTED, despite COINTED’s fraudulent presentations and promises in their white paper. Investors were simply misled by inaccurate information found in white papers and public sources.
It was discovered that Charli AHO, the purported co-founder of COINTED, was also a 50% shareholder in Crypto Unity OG, a company that ran a cryptocurrency mining operation and raised capital from investors to purchase mining hardware. The business model of INVIA GmbH, whose operations were recently outlawed by the Austrian Financial Market Authority (FMA), was comparable to that of Crypto Unity OG. Crypto Unity OG has also worked closely with the Austrian company WACHSENDE WERTE GmbH & Co KG which introduced investors to Crypto Unity OF resp. bought themself mining hardware from Crypto Unity OG.
An investor owns the remaining 50% of Crypto Unity OG; this investor was initially unaware of the purported COINTED takeover. Charli AHO assured this investor that she would reimburse him when she was faced with the circumstances. Since this wasn’t completed until today, Charli AHO and his partner are still listed as the company’s shareholders in the Austrian Commercial Register. It found out that Charlie AHO had secretly and unlawfully moved Crypto Unity OG’s crypto-mining operation into the COINTED network without the partner’s permission. In exchange, Charli AHO reportedly acquired a 25% interest in COINTED LTD. The co-partner of Crypto Unity OG filed a criminal complaint as a result.
As a result, the COINTED white paper was altered to name the Swiss business SWISS CRYPTO GROUP AG, which is purportedly COINTED’s cryptocurrency mining subsidiary. Furthermore, mining would have taken place in Sweden and COINTED AB would have been established there, according to COINTED.
As of right now, COINTED’s website states that COINTED AB will begin offering mining services in the first quarter of 2018. The first quarter is, of course, long gone. September 2017 news can be seen on the COINTED website as of right now.
Where are the CTD token and crypto-debit card?
The startup will launch its own cryptocurrency debit card, according to the COINTED white paper. After stating that SWISS CRYPTO GROUP AG would issue this card, COINTED LTD in Hong Kong was mentioned. The COINTED website still states as of right now that the cryptocurrency debit card will launch in the second quarter of 2018. Then, soon.
Furthermore, after the ICO is over, no information is available regarding what happens to the CTD tokens and their holders. In order to raise more than $100 million US to finance the company’s continued expansion, up to 650 million CTD were to be offered to investors in the initial coin offering (ICO). Naturally, trading the CTD token on a cryptocurrency exchange is recommended. In actuality, the ÍCO sold little less than 6 million CTD tokens. However, on March 12, 2018, COINTED posted in the Bitcointalk Forum:
To raise more than $100 million US, investors in the initial coin offering (ICO) were to be offered up to 650 million CTD. Naturally, trading the CTD token on a cryptocurrency exchange is recommended. In actuality, little under 6 million CTD were sold, and COINTED hailed this outcome as a success. This sounds peculiar, doesn’t it? Yes, it is!
The last post put an end to the conversation. Investors haven’t received any updates or advice since then. On June 23, 2018, a user going by the handle “Philipp” posted on COINTED’s ICO telegram channel saying managing director Wolfgang THALER would shortly be sending a video message outlining COINTED’s present state. Radio silence on the official COINTED Telegram channel.
Claims of Fraud Against Eduard Orloff’s COINTED
General Bytes, a former partner, has accused COINTED of violating licensing rights and stealing its technology for use in Crypto-ATMs. You may still read the claims online at General Bytes’ website. It was confirmed that the accusations will be upheld upon request. Not only were COINTED’s Crypto-ATMs utilised in the OPTIOMENT fraud, but it’s not even apparent if COINTED has the legal right to employ this technology.
Termination of the Crypto Industry
On June 18, 2018, COINTED notified its users that the functioning of their cryptocurrency exchange would need to be halted, if only temporarily, due to many hacker attacks and technical issues (see Facebook Posting here). This must be officially viewed as a total surprise, given only a few weeks prior, in May 2018, COINTED spokesperson Albert SPERL declared in a Facebook video interview that the cryptocurrency exchange would soon provide fantastic new services. Officially, the market and many close to COINTED had anticipated this.
One of COINTED’s main operations was the cryptocurrency exchange, which has since stopped (temporarily) despite numerous fantastic news. Regarding this significant announcement, there isn’t much on the company website to read.
Consumers lamenting that they haven’t received their money were responding to COINTED’s Facebook post. Complaints have also been made over the non-operation of COINTED’s crypto-ATMs.
Throughout the ICO, COINTED has disseminated its positive messaging across all accessible platforms. Now, they remain silent when it comes to matters of great importance. The relevant Facebook remarks have not received a response. It seems like the COINTED group is attempting to resolve this quietly and out of the spotlight. As of right now, it’s unclear if and how much money consumers lose as a result of their exchange company stopping. But as we discovered, the withdrawal is no longer effective.
Authority Interventions Are Critically Needed to Protect Investors from People like Eduard Orloff
It’s time for authorities to intervene in the best interests of protecting investors, given the facts and the evident problems with COINTED.
The Austrian public prosecutor’s office might choose to adjust its caution and prioritise protecting investors and the capital market in light of the strict measures taken by the relevant authorities in other jurisdictions. It is past time that COINTED’s executives respond to inquiries from the public prosecutor’s office in the best interests of investors, clients, and market players:
- What about the White Paper’s supposed misrepresentations?
- What about the misrepresented information to the public on the rights and assets of the company?
- What about COINTED’s and its members’ complicity in the OPTIOMENT fraud?
- What about the Crypto Unity OG and its WACHSENDE WERTE-supported cryptocurrency mining scheme?
- What about investors in Crypto-Unity OF that mine cryptocurrency? Right now, who is paying them?
- And plenty others
Asking and receiving answers to those questions now, rather than later, is in the best interests of all investors. The crew as a whole appears to have vanished right now.
Eduard Orloff: Summary
All one would need is two Bitcoin accounts in order to land their money. Account A would get Bitcoins in exchange for USD that had been laundered. The coins would then be sold by Account A to Account B using a separate address. After that, Account B would convert the Bitcoins into real USD. Account B and its user appear entirely genuine as long as Account A is kept a secret from law enforcement.
Retracing the money is made more difficult by the absence of a physical bank transaction, in contrast to traditional money laundering. Even worse, in order to make the transactions appear less noticeable, the money launderers could continue to alter the addresses of both accounts.
If Bitcoin were to gain traction, it would offer a substitute for current methods of product exchange. But given its nature, Bitcoin would be ideal—if not the best—in the arena of illegal activity. That can afford criminals the desired anonymity.
