Scammers Beware: Liti Capital’s Scambusters campaign ends today

12 crypto scam cases have been put to a vote in Liti Capital's successful Scambusters campaign. After 20 days of campaigning, the case with the most votes will be taken to litigation as part of the company's mission to fight crypto scams and fraud. 

The outcome will be unveiled tomorrow.

Swiss-based litigation funding organization, Liti Capital SA, is disrupting private equity investing with blockchain technology. On September 23, 2021, it launched a revolutionary campaign, Scambusters, as a way to fight crypto scams and fraud.

Liti Capital chose 12 cases after screening through its exhaustive selection process (that has been an orchestration of a team of adept litigators and intelligence experts) to be put to community vote. 

LITI tokens and wLITI token holders have been pledging their tokens for the case or cases they felt most worthy of getting fully-funded support from Liti Capital. 

The voting ends today, 14 October 2021, and the result is to be announced tomorrow, 15 October 2021. 

The voters who have backed the winning case will get a pro-rata share of 250,000 wLITI tokens. This case will then be taken to litigation.

Liti Capital seeks to get justice to the case by either fighting for the recovery of the assets or stolen funds or exposing the scammer in every possible way, or even both (should it be possible). 

Taking the case as a lawsuit is a side job for the company, where the team of expert attorneys and litigators, and other resources would be employed for its “side job” to clean up the crypto space. 

“The idea that scammers can freely operate in the crypto sphere without facing the consequences of their actions must end to bring trust and change the perception blockchain and crypto projects have in our society”, Andy Christen, CVO/COO at Liti Capital. 

The campaign has been a platform to unite the crypto community against criminals and scammers, thereby facilitating an ecosystem of trust and reassurance in the blockchain and cryptocurrency. 

Crypto Scam Prevention - Part 2

Part 2 — Fake Copies of New Projects

Jonas *WILL NOT DM FIRST*

You have likely seen this addition to many Telegram IDs. Most legitimate, popular new projects take these precautions because as soon as a project begins to take off, fake versions of that project begin to take off as well.

Crypto scams come in many shapes and sizes, and scammers are quick on their feet. They understand that the most effective moment to create a duplicate project is when the hype is first starting to build. That’s when the community and new community members are the most excited and least prepared. When the project hasn’t yet secured its place in the environment and familiarized itself with its members.

So what some scammers do is create a fake duplicate token with a similar name, a fake Telegram group, fake Telegram accounts for the founders, and start reaching out to people from the founder’s names. That’s why most founders will say “will not DM first,” because why would the founders reach out to random retail investors?

For example, what’s the difference between LITI and wLITI? Most of us may know the answer to that now, but as the project developed, many were confused. It wouldn’t have been very difficult for a scammer to create any variation in the alphabet. uLITI, vLITI, zLITI, etc.

In fact, there was a fake Liti Capital Telegram group with tens of thousands of bots as members and over $60k (of their own money) invested in the fake token on the Binance Smart chain, Wliti. Naturally, the Liti team found this fake group and shut it down in mere days before much harm was done. That’s what we do.

On one hand, it’s flattering for any new project to have a scam duplicate. It shows that they have real potential, and the scammers can see that right away. But, just like any other scam, it slows down the ecosystem and lowers investor confidence on a broad scale.

So what can you do to make sure you don’t fall into that trap? Follow a couple of simple steps and you won’t have to worry:

  1. Never respond to DMs from people you don’t know, especially if they’re trying to get money out of you in some way. This goes for any business request of any kind. If someone reaches out about SEO services, go to their website and apply through the proper channels or go to a different website. You don’t owe anyone your business just because they texted you.
  2. If you find a project you like and find yourself in their Telegram group, go to their pinned messages immediately. This is where you can find important information about the project so that you don’t have to ask the group. If you can’t find any relevant information, just exciting hype posts, either the token is a scam or it’s simply not a good project.
  3. Follow the links to their website and social media accounts. The fake project may post real links to show legitimacy. If there are no links or if the links lead to fake-looking pages, stop. If the links are real, follow those links back to the Telegram group. You may find yourself in the same group or you got lucky and found the real one. Keep following links in a circle, from Twitter to YouTube to Instagram. After seeing the founders and legitimate content, you will be safe to assume that a Telegram link in those places is a good one.
  4. Look up the company’s press release on Google. Type in the company name followed by “Announces” or “Press Release”. There, you will be able to find legitimate links to the company’s socials, website, and Telegram.

New projects can be exciting for the interesting, innovative concepts and the opportunity for a big investment, but you always need to do your own research (DYOR) and be absolutely sure before you spend your money. If everyone does their part, we can put the scam economy behind us.

If you have been a victim of crypto fraud or would like to learn more, please visit https://liticapital.com/fighting-crypto-fraud/ for more information.

Crypto Scam Prevention - Part 1

In spite of the positive ethos and forward-thinking innovation of the blockchain and cryptocurrency, scams and frauds are all too common. Of course, any new industry requires a grace period to work out the kinks, but with hundreds of IDO’s every year, even the purists are beginning to understand the necessity of a few common-sense regulations.

Liti Capital is dedicated to taking down scammers while upholding the principles of diffusion of power and transparency of corporate entities by which the blockchain was built. We have committed 5–10% of our investment capital every year to pursuing cases of fraud brought to us by our community members. As we have come to familiarize ourselves with the community we have come to the conclusion that if we don’t do this, who will?

Ultimately, the goal is to prevent scams from ever happening. Catching the bad guys in the act has a certain thrill, but it would have been better had they not had the chance to cause harm in the first place. We believe community-wide education will be the most effective tool in preventing scams on a broader scale. We can’t stop everyone and we can’t catch everyone. In order for the system to work, we all have to pull our weight. That means doing your part to make sure you are knowledgeable about the risks and red flags of investing in cryptocurrency. We want you to be educated so that you can be prepared, not just protected.

So before you make your decision to start investing, or you simply want to brush up on some tips and help spread the word, here are a few ways that the community can help prevent scams for good.

What to Look Out For

The most prevalent scheme is an exit scam. Exit scams involve a token launch that quickly gains financial backing from investors, and then, once the coin has raised a significant amount of funding, the “founders” remove the coin from the marketplace and run off with the liquidity. In the early days, it was very, very easy for grifters to pull this off because anyone could list a coin on the most popular DEX’s and hide behind the anonymity provided by the blockchain.

Exit scams are carried out through a variety of manipulative means, including rug pulls, digital MLM schemes, and even more sophisticated tactics that target the code and contracts meant to provide a sense of security for users.

Some common red flags to look for:

Criminals can be very manipulative, and they can sense when the crowd has caught on to the bit. If they’re worth their weight, they know when it’s time to get creative and change tactics. They may tone down the “get rich quick” language if it isn’t catching on, or they may introduce a sloppy whitepaper. Stay focused and make sure every aspect of the project is airtight and that it makes sense in the real world.

Protect and Assure the Community

There is a tension brewing amongst the decentralized community that recognizes the crossroads we have reached in the evolution of blockchain technology. Concentration of power leads to exploitation. We don’t want that. But diffusion of power leads to a lack of coordination. We don’t want that either. So how do we continue to lay the framework of decentralized systems in a way that addresses the need for regulation without becoming centralized?

Many platforms have already incorporated incentives to motivate their users to educate themselves before investing in crypto, offering small amounts of Bitcoin or Ethereum for every course taken or certificate received. Coinbase offers many such programs.

Other legitimacy protocols include auditing, platform-specific ratings and authenticity scores, liquidity lockers, and vesting schedules.

For our own part, we have made use of those practices that make sense for our purposes. Since our launch on June 29th, 2021, wLITI has already been listed on CoinGecko and CoinMarketCap, trended #1 on DEXtools on opening day, and has trended in the top 10 since then. We have a DEXtools score of 99 out of 100 and a community trust rating of almost 80% at the time of writing.

Part of the reason we have such a high score and trust rating is that we do not hold any team tokens. This significantly lowers the possibility of an exit scam or rug pull.

So far, our team has made good on its promise to be engaged and accessible within the community. Co-Founders Jonas Rey, Andy Christen, and Jaime Delgado, along with CIO David Kay, have all been active in the Liti Capital Telegram chat, organizing daily AMA’s, and consistently maintaining their Twitter presence. All of this is done with the intention of connecting with the community and demonstrating our commitment.

Building trust is incredibly important when dealing with the anonymity of the blockchain.

Embolden the Disenfranchised

When preparation and prevention aren’t enough, there has to be a system in place which is able to provide accountability.

Liti Capital is meeting the demand for justice in the market because. We have already received well over 200 requests from our community about fraud cases and the emails are only multiplying.

In our first test of actionability, we were contacted by crypto-influencer, Coach K, about a scammer who had taken off with nearly $250,000 worth of Coach’s assets. We mentioned before that scammers can be very elaborate in their tactics. We wrote here about how Coach K, someone with extensive experience in the industry, was able to be conned out of such a large sum.

In less than 48 hours, we found the culprit. We were able to gather information about his whereabouts, place of employment, travel patterns, and even a new gaming cafe business he’d started (with Coach K’s money, of course). Check out the full conversation here.

As with the cases in our portfolio that are not crypto fraud-related, we will only pursue those cases brought to us by our community that have a likelihood of success. In Coach K’s case, he already had a good amount of information about the identity of the scammer to provide a launching pad for further investigation.

Reach Out to Liti Capital

In a recent AMA with Jonas Rey and David Kay, the two explained that crypto has been criticized for being merely a digital replacement for fiat currency. Rey stated, “Right now the Defi is at a crossroads in terms of value — how do we generate long-term value? It needs real-life transference.”

We want our community to feel like they are getting the most out of their investment, and we also want to provide multiple layers of long-term, tangible value. Our investors should view scam busting as a form of insurance. Holding a LITI or wLITI token helps to protect your other investments and the community as a whole.

If you have been a victim of crypto fraud or would like to learn more, please visit https://liticapital.com/fighting-crypto-fraud/ for more information.