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

Six Dead And Dozens Hurt In Nightclub Stampede In Italy
Six Dead And Dozens Hurt In Nightclub Stampede In Italy [Video]
Paris On Lockdown Ahead Of Planned Protests
Paris On Lockdown Ahead Of Planned Protests [Video]
Luxembourg To Become First Country To Make Public Transport Free
Luxembourg To Become First Country To Make Public Transport Free
US Mourns George HW Bush As Trump Gives Cold Shoulder To Clintons
US Mourns George HW Bush As Trump Gives Cold Shoulder To Clintons [Video]
Worldwide Adoption Keeps Growing, 1,500 Restaurants In Denmark Accept Bitcoin
Worldwide Adoption Keeps Growing, 1,500 Restaurants In Denmark Accept Bitcoin
Half The Crypto Market Eliminated In Less Than A Mont
Half The Crypto Market Eliminated In Less Than A Mont
Singapore Residents Targeted In Crypto Scams, $78,000 Lost
Singapore Residents Targeted In Crypto Scams, $78,000 Lost
Brazilian Mining Company Under Investigation, Says It Can’t Pay Investors
Brazilian Mining Company Under Investigation, Says It Can’t Pay Investors
Visual Trends To Be Aware Of In 2019
Visual Trends To Be Aware Of In 2019 [Infographic]
How To Get Sponsored Posts For Your Blog
How To Get Sponsored Posts For Your Blog
The Advantages YouTube Ads Have Over Facebook Ads
The Advantages YouTube Ads Have Over Facebook Ads [Video]
7 Tools Will Help You Kick Butt In 2019
7 Tools Will Help You Kick Butt In 2019 [Video]
Instagram's Testing Side-Scrolling Feed View, Similar To Stories
Instagram’s Testing Side-Scrolling Feed View, Similar To Stories
The 10 Best Instagram Tools For 2019
The 10 Best Instagram Tools For 2019
Pinterest's Recommendation Algorithms Are Improving
Pinterest’s Recommendation Algorithms Are Improving
YouTube Launches YouTube Stories, Prominent Creators Only
YouTube Launches YouTube Stories, Prominent Creators Only [Video]
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
Your Environment May Affect Your Eyes More Than You Realize
Your Environment May Affect Your Eyes More Than You Realize
Why Hotels Want You To Stop Instagramming Your Vacation
Why Hotels Want You To Stop Instagramming Your Vacation
Six Dead And Dozens Hurt In Nightclub Stampede In Italy
Six Dead And Dozens Hurt In Nightclub Stampede In Italy [Video]
Paris On Lockdown Ahead Of Planned Protests
Paris On Lockdown Ahead Of Planned Protests [Video]
The Advantages YouTube Ads Have Over Facebook Ads
The Advantages YouTube Ads Have Over Facebook Ads [Video]
7 Tools Will Help You Kick Butt In 2019
7 Tools Will Help You Kick Butt In 2019 [Video]