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Ethereum [ETH] based game ‘FOMO 3D’ makes a splash, branded ‘Bitconnect 2.0’

Akash Anand

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Ethereum [ETH] based game, FOMO3D makes a splash, branded 'Bitconnect 2.0'
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On 21st July, users in the cryptocurrency world woke up to a startling development: an Ethereum-based gambling game where users could buy a ‘key’ and hope to be the lucky winner who wins all the Ethereum tokens in the pot. The game is called FOMO 3D and as the name suggests, the game banks on people’s ‘Fear Of Missing Out’.

In a time where cryptocurrency and its developments are being hindered by pulsating scams from all across the globe, this new development may create a stir in the cryptosphere. Branded the new Bitconnect or ‘Bitconnect 2.0’, the game works on a very simple gambling premise. Users log in using an account that they create, and buy a ‘key’ paid for by ETH tokens.

At the time of writing, one key was worth 0.0054 ETH, a price according to the website is minute compared to the final payoff: a massive reward of 21300 ETH.

How does the game work?

The key that a user buys acts like a token or an add-on because it adds 30 seconds to the timer that is given in the game. The ETH that the users spend on getting a key goes to the culmination pot and the rest of it goes to the users that bought a key earlier as “dividends”. A timer is set on the website and the last person who buys a key before the timer runs out, usually 24 hours, wins all the ETH in the culmination pot.

The price of a key is programmed to rise gradually after each individual purchase, thereby increasing the value of the culmination pot and the dividends. Currently, the timer resets automatically which means that no one is going to win the culmination pot anytime soon.

Why is this a problem?

The game is eerily similar to a pyramid scheme, with current players urging others to join which in turn benefits the current players when the new entries buy a key. This vicious pattern has seen its rise and fall in various other industries, with almost all of them leaving a lot of people broke and unstable.

JohnAP, a Reddit user commented on a thread saying:

“Communities have formed around pooling resources just to buy enough ETH to be able to purchase a key in FOMO3D. Other dApps became completely unusable sometime around the end of 2019 as the price of ETH began to climb too high for people to continue paying normal gas prices”





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QuadrigaCX Curtain Call Part 3: Private Jets, yachts, a major bombshell and maybe a biopic?

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QuadrigaCX Final Call Part 3: Private Jets, Yachts, a major Bombshell and possibly a biopic?
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Ernst and Young, the audit giant, the court-appointed third-party monitor and now the bankruptcy trustee of the QuadrigaCX proceedings, released its fifth report on the QuadrigaCX episode. Part 1 & 2 of AMBCrypto’s coverage can be found here, and here.

The TOYS

Gerald Cotten did what any fraudster would do; swipe all the money from his business, use it to enrich himself and his family and fail to pay anyone affected. The monitor was unable to ascertain any “records in respect to fees or compensation” paid to anyone by the exchange. Further, Cotten did not file tax returns in 2014, 2015 and 2017. However, in his statements from 2016, no income from QuadrigaCX was claimed.

The report identified several fiat transfers between Cotten and his wife, Jennifer Robertson, and the duo acquired significant “real and personal property” either personally, or via third-party corporations. Cotten and Robertson also frequented various vacation destinations using private jet services. No other income apart from the funds emanating from QuadrigaCX was used for these lavish adventures, the report said,

“The Monitor has been advised that neither Mr. Cotten nor his wife had any material source of income other than funds received from Quadriga.”

An Asset Preservation Order placed on Robertson and her property by the monitor in April listed out the assets as real properties in Nova Scotia and British Colombia, securities, cash holdings, a “personal sailing vessel,” a “personal aircraft, “several luxury vehicles,” and gold and silver coins with a total value of $12 million.

The EXPERT

Evan Thomas, a commercial litigator who delved deep into the QuadrigaCX case, stated that the ability of the exchange and its CEO to carry out such fraudulent acts right under the noses of the authorities and its customers stemmed from its lax internal governance. Cotten made sure that the administrative activities would not be logged. The litigator stated,

“Quadriga apparently had no internal controls or accounting records, no segregation of customer assets from Quadriga’s assets, and no visibility into its own profitability, ever.”

On the topic of the funds’ movement between QuadrigaCX and the aforementioned unnamed exchanges, Thomas stated that Cotten may have used fake accounts under pseudonyms to avoid suspicion and then credited these accounts with fiat and cryptocurrencies which were then “used to trade against the Quadriga users.”

Thomas stressed the link between the Markay account and the competitor exchanges where Gerald Cotten was known to control accounts under different names. He stated,

“Again, these withdrawals were primarily to other exchanges where Cotten held accounts in his name or to other parties trading with Cotten personally. Some of the transfers were to wallets controlled by unknown parties.”

Succinctly summarizing the entire QuadrigaCX debacle, Thomas concluded,

“The biggest bombshell, foreshadowed in earlier reports, is that Cotten set up fake accounts, funded them with hundreds of millions of dollars of fiat and crypto that didn’t exist, bought real crypto from users and then moved the crypto off Quadriga.”

QuadrigaCX has been a tale like no other, or every other, depending on how deep and detached you are from the world of financial frauds. It has been the ideal scam; man sets up a fake business, takes in millions of dollars worth of funds, scatters the funds in different pools under anonymous names, enriches himself and his family, before the mastermind behind it all dies, leaving the authorities clutching thin air.

Who knows? A QuadrigaCX biopic might be in the works with Ryan Gosling (Another Canadian) in the lead. Martin Scorsese should be licking his lips now.





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