Cryptocurrency Lender DavorCoin Defrauds Investors Out Of Millions

Originally published by iBankCoin

After promising big returns, Scottsdale, AZ-based cryptocurrency lender DavorCoin left investors with virtually zeroed out accounts - following a similar wipeout of BitConnect.

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The scheme was simple; investors would lend the cryptocurrency operators real money, for which they would receive interest on their loans in the form of proprietary "DavorCoins" (DAV), which promised an interest rate as high as 48%. The site's "Lending and profit calculator" suggested at the end of January that an investor lending $30,000 in davorcoin who agrees to lock funds up for 120 days may earn $513 per day, $3,591 per week, $15,390 per month, and $104,217 upon "capital release day" on August 23, 2018.

The company was also offering a "WELCOME TO THE 'BE A MILLIONAIRE' LENDING LOTTERY!!!" in a Medium.com post, adding "We will offer an amazing $1,000,000 to someone from the Davor community and many more prizes!"

Sounds legit, right?

Things were going swimmingly until cryptocurrency prices began to crash in January. After BitConnect was shut down for "illegally and fraudulently offering investments in a cryptocurrency lending program" subject to the Securities act, DavorCoin responded, saying "This does not change anything for us," adding that DavorCoin is now "the number one lending platform in the world !!"

Shortly thereafter the price of DAV went from $177 to under a penny in less than three weeks - amid receiving a Cease and Desist from the state of Texas, alleging a variety of fraud offences in connection to DavorCoin's offerings - as well as "misleading and deceptive statements."

And then people had issues selling their DAV coins:

 

 

Investors on Facebook and Twitter bemoaned their losses. One investor who had loaned the company $4,000 said they were left with just $9. Another said that their $20,000 loan dissolved into $23.50 upon cashout.

On February 7, DavorCoin issued a statement ending their lending program, stating "There will be certainly winners and losers in this project, as in many high-risk investments. This is also true for the whole cryptocurrency market."

 

According to a December survey, over 18% of respondents said they bought bitcoin on credit. Of those, 22% said that they had not paid off the debt despite virtual currencies reaching all time highs. And of those who hadn't paid back the money borrowed to purchase crypto, 70% said they believed that owning Bitcoin is worth the interest expense.

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Comments

slobbermut Sun, 02/11/2018 - 10:39 Permalink

It would be nice for the article to have identified the individuals behind DavorCoin, and whether they are being prosecuted - not that it will benefit those who have lost such huge percentages of their 'investments'.

Coreadrin slobbermut Sun, 02/11/2018 - 14:06 Permalink

It'll sure benefit them in the feels if they lock the ponzi f**ks up for life...

Mind you this is just a bigger percentage, much faster turnover situation that is otherwise identical to a huge number of pension plans, social security, canada pension, and others, so......  don't put all your eggs in one nest, type thing...

In reply to by slobbermut

Rhetorical konputa Sun, 02/11/2018 - 16:53 Permalink

Most people dont have a coding background but anyone can get into crypto. This is a double edged sword. Like Epsilons guy said. Raccoons. But the sad thing is these people clearly did no research. iI a crypto tells you about the money you make first before talking about what it can do function wise. Its a scam or at best a shit project that will go no where 100% of the time. To be quite honest I thank the people making these mistakes, it stops me from having to learn them myself and Ive learned a shit ton. 

In reply to by konputa

XBroker1 Sun, 02/11/2018 - 11:42 Permalink

 

"I lost 20k in bitconnect and 10k In Davor.....hope that makes you feel better."

 

Of course they don't 'feel better', once the hookers and blow are all gone.

cheech_wizard Sun, 02/11/2018 - 12:59 Permalink

ROTFLMAO!

I was literally going to fill up ZH with pages and pages of "ROTFLMAO" but I honestly don't get a fuck whether the sheep get fleeced when the ponzi is so brazen and in your face.

"Returns of 48%"

Plus the fact I haven't heard of a mass murder at Davorcoin Headquarters tells me these people doubly deserved the fleecing they received.

So on that happy note, I will pass on the following. In the spirit of Travis McGee, I will try to recover your money at the usual fee of 50% of all monies recovered.

dhengineer cheech_wizard Sun, 02/11/2018 - 14:40 Permalink

"Davercoin Headquarters" is probably a couple of girly-men sitting at a corner table at Starbucks, their man-buns carefully coiffed and their three-day growth of peach-fuzz beards perfectly trimmed, sipping their $10 lattes while trying to act serious on their cell-phones, their lap-tops with windows open to CNBC.com at the same time as tranny porn plays on other windows in the background.  Yeah, I'm gonna send a bunch of real dollars to morons like this.  Gawd, people are terminally stupid...

In reply to by cheech_wizard

maxblockm snblitz Mon, 02/12/2018 - 00:54 Permalink

They are actually brass.

If Bitcoin is worthless, why will dealers give you gold for it? 

Bullion for Bitcoin: 

https://amagimetals.com No Limit 

https://bullionstar.com 200BTC ($3.6million)/day 

https://apmex.com $250k/order 

https://providentmetals.com $250k/order 

https://suissegold.com $100k/order, higher with prior approval 

https://goldsilver.com $100k/order, increasing soon 

https://jmbullion.com $100k/order

https://silver.com $100k/order 

https://veldtgold.com $100k/order 

https://moneymetals.com $100k/day 

https://schiffgold.com 

https://americanbullion.com 

(figures from 12.12.17, send message to [my username] at gmail.com if there is an update)

 

Not all cryptocurrencies are valuable though, just like gold plated coins vs. solid gold coins.

In reply to by snblitz

snblitz Sun, 02/11/2018 - 13:38 Permalink

When I build real companies delivering real products to make everyone's life better it is a Herculean effort to raise money.

On the other hand, investors throw money at these crazy crypto schemes?

PitBullsRule Sun, 02/11/2018 - 14:13 Permalink

"Davor Coin"? What the hell man?! Why'd you buy "Davor Coin"? I told you to buy "Dogey Coin"! Oh wait, that one's zero'd out too, I told you to buy "Denta Coin"! Eh...oops! ...no that one's in the crapper too. I told you to buy "ByteBalls" Dummy!! If you'd a bought "ByteBalls" we'd be rich you asshole!! Why didn't you buy "Byte Balls"?!

VWAndy Sun, 02/11/2018 - 14:36 Permalink

 Pst pst hey budy. You seem like a sharp kinda guy. Wanna learn how I made my millions. I set up thing thing where we get these magical returns on our investments. You just put your money here along with a bit of trust and a lot of faith. I will do the rest.

  Magic beans=hyperloop

 And people fall for it in droves.

pparalegal Sun, 02/11/2018 - 17:20 Permalink

48%? Like those who converted dollars to pesos in a Mexican bank savings account in the 80's paying 30%. Just before a 50% devaluation. What could go wrong.