tl;dr
A crypto scam linked to DeFi platform Terablock has defrauded over 1,200 investors in Mexico and the US, with losses exceeding $300 million. Terablock promised monthly returns of 7% to 15% via investments in USDC stablecoin through a mobile app. The platform ceased operations suddenly in August 2021...
A crypto scam linked to DeFi platform Terablock has devastated over 1,200 investors across Mexico and the United States, with losses estimated to exceed $300 million. The scheme promised monthly returns ranging from 7% to 15% through investments in the USDC stablecoin, accessible via a mobile app on Apple’s App Store and Google Play where investors could monitor their supposed profits.
Terablock began promoting its investment program in 2019 but abruptly ceased operations in August 2021, blaming a “technical shutdown.” The founders disappeared, leaving investors unable to access their funds. Following protests outside the Baja California prosecutor’s office, authorities arrested a woman named Mónica “N” in La Paz, accusing her of co-authoring the fraud. Investigations also target Javier Elenes and other associates through a coordinated Mexico-US effort.
Victims reported that Terablock claimed to use an algorithm generating trading profits, paying returns to investors who recruited others. Withdrawals were restricted to specific dates and involved high fees when converting crypto to pesos or dollars. Despite ongoing international cooperation, experts caution that recovering lost funds could take years. The human toll is severe, with some victims losing life savings, facing bankruptcy, mortgaging homes, and even succumbing to despair.
To avoid similar crypto scams, financial authorities advise investors to rigorously research platforms by verifying legal registrations, leadership teams, and reputable media coverage. Investors should be wary of promises of fixed or unusually high returns, as the cryptocurrency market is notoriously volatile. Red flags include limited-time offers and unsolicited investment pitches, which may result from social engineering.
Protecting private keys, halting transactions upon suspicion, and collecting evidence for authorities are crucial steps when encountering potential fraud. Ongoing education in cybersecurity and attentiveness to official warnings remain essential strategies to minimize risks in the dynamic crypto ecosystem.