fbpx
Money

Brazilian Mining Company Under Investigation, Says It Can’t Pay Investors

Brazilian mining company Minerword, who is facing allegations of being a Ponzi scheme, now claims it does not have enough bitcoins to compensate investors who pledged money into the company.

A court order purportedly mandated the company to use remaining financial resources to pay back investors, but reporting from Mixiamax said Minerworld told the court it could not make payments because remaining funds were spent on keeping operations running and to terminate contracts with service providers.

Minerworld allegedly asked for permission to publish account statements for the last four months in order to show income and expenses. The number of affected investors due to the purported lack of funds eclipses 50,000 people.

A Possible Ponzi Scheme?

Minerworld has come under fire from people in a variety of circles who claim it is a pyramid scheme. Officials in Brazil are taking up a case against the company.

Suspicions were raised after Minerworld claimed they lost 851 bitcoins in October 2017 due to a phishing attack on the Poloniex exchange. The exchange did not release any statements detailing a theft, according to media.

Authorities also became suspicious about the company due to alleged promises of high returns on investment and information about prizes like international trips and imported vehicles.

Minerworld has affirmed they are not a pyramid scheme or have a model similar to a multi-level business, according to CryptoNoticas.

However, Minerworld also faces investigations and accusations from authorities in Paraguay. The nation’s Securities Commission labelled the company a hoax in October 2017.

Brazil Morphing Into A Financial Hub

Research by the Inter-American Bank of Development has revealed how Latin America is becoming home to a growing number of fintech startups.

LATAM Tech wrote how this fact is notable since the idea of ‘fintech’ was relatively unknown in the region five years ago. Big technological advances couples with increased usage of mobile phones and Internet has led to a fintech renaissance.

Brazil alone has 380 fintech-related companies and has experienced some of the biggest growth in Latin America in relation to the industry.

This story originally appeared in CryptoGlobe. Image courtesy of  Shutterstock.

Join The Discussion

At Least 70 Killed In Major Bangladesh Fire
At Least 70 Killed In Major Bangladesh Fire [Video]
Trump Ends Shutdown, Signs Bill To Reopen Government
Trump Ends Shutdown, Signs Bill To Reopen Government [Video]
Melbourne Expecting 44C As Victoria Faces Hottest Day Since Black Saturday
Melbourne Expecting 44C As Victoria Faces Hottest Day Since Black Saturday
Maduro Rival Guaido Claims Venezuela Presidency
Maduro Rival Guaido Claims Venezuela Presidency [Video]
Onecoin Is Ashes But Investigations Continue To This Day
‘Bitcoin Killer’ Onecoin Is Ashes But Investigations Continue To This Day
Cryptocurrency Market Volumes Reach Nine-Month High
Cryptocurrency Market Volumes Reach Nine-Month High
United Kingdom Does Not See Utility Token As Securities
United Kingdom Does Not See Utility Token As Securities
How To Put Crypto In Everyone’s Pocket In 2019
How To Put Crypto In Everyone’s Pocket In 2019
The Future Of Online Shopping
The Future Of Online Shopping
10 Marketing Trends To Watch In 2019
10 Marketing Trends To Watch In 2019
40+ Video Marketing Statistics For 2019
40+ Video Marketing Statistics For 2019 [Infographic]
Emerging Email Marketing Trends To Survive 2019 And Beyond
Emerging Email Marketing Trends To Survive 2019 And Beyond [Infographic]
YouTube Introduces One-Time Warning, New Strike Penalties
YouTube Introduces One-Time Warning, New Strike Penalties [Video]
The Latest Social Media Automation Rules In 2019
The Latest Social Media Automation Rules In 2019
4 Tips To Help You With The Constant Changes In Social Media
4 Tips To Help You With The Constant Changes In Social Media
Instagram's Testing Side-Scrolling Feed View, Similar To Stories
Instagram’s Testing Side-Scrolling Feed View, Similar To Stories
9 Questions To Ask Your Network To Help You Find Your Path
9 Questions To Ask Your Network To Help You Find Your Path
What Is Your Therapist Listening For
What Is Your Therapist Listening For?
Wish You Were Smarter
Wish You Were Smarter? These 4 Brain Hacks Can Help You Get There
Weightlifting Less Than An Hour Per Week Could Increase Your Longevity
Weightlifting Less Than An Hour Per Week Could Increase Your Longevity
At Least 70 Killed In Major Bangladesh Fire
At Least 70 Killed In Major Bangladesh Fire [Video]
YouTube Introduces One-Time Warning, New Strike Penalties
YouTube Introduces One-Time Warning, New Strike Penalties [Video]
Trump Ends Shutdown, Signs Bill To Reopen Government
Trump Ends Shutdown, Signs Bill To Reopen Government [Video]
Samsung Galaxy S10 Bitcoin Wallet Leaked By Insider
Samsung Galaxy S10 Bitcoin Wallet Leaked By Insider [Video]