Coscoin describes itself as “a leading AI quantitative trading platform” where people can double their investments
- Author, Andy Watson
- Role, BBC Radio Newcastle
A man who quit his job to become a WhatsApp group administrator for a cryptocurrency app said he fears he has “ruined” his life after users were left unable to access investments.
Mark, who also signed up to the app, said he was allegedly promised a large salary and his own office by someone claiming to work for Coscoin.
He left his job at Nissan in Washington, near Sunderland, on 15 November and people began to experience problems withdrawing money less than two weeks later. Mark said he had not heard from Coscoin since.
“We were just used like puppets,” he said. “They have painted a target on our backs and we were there to take the fall.”
A WhatsApp message Mark sent to Coscoin on 1 November
Coscoin, also known as Cos, describes itself as “a leading AI quantitative trading platform” where people can double their investments.
It claims to be based in Washington, US.
Coscoin has not responded to the BBC when asked for a comment.
A message between “Sophia” and Mark
Mark said he had signed up as a user in July after finding out about it from colleagues at Nissan. He was then added to a WhatsApp group, which Coscoin used to communicate.
He said he was later contacted by someone called “Sophia”, who claimed to be a project manager, and was told he had been approached because he was active in his group.
“Obviously I believed in it and it was a good opportunity,” he said.
They invited him to act as a WhatsApp administrator, where he had to “learn scripted answers”.
He said he was also told to “remove” posts if people claimed Coscoin was a “scam”.
A message Mark was sent telling him how to explain the work
The BBC has seen that there were thousands of people who were active in the WhatsApp groups.
“[Cos] sent us a lot of information, they were telling us how we could make money,” he said.
“It was all very clever, for our work as admins we were given commission which was paid into our Cos accounts.”
Mark was allegedly promised commission of 5,500 US dollars (£4,378) per month, which led to him leaving his job.
He said all of his communication with Cos had been through WhatsApp, and his payments would go into his Cos account.
“I thought it was life changing,” he said.
“I believed it at the time, it’s stupid to believe it – I’ve never done anything like this in my life.”
Mark says he tried to make contact with Coscoin, and claimed he was used as a “puppet”
Users began encountering problems with their withdrawals after Coscoin ran a “Thanksgiving special”.
Mark said he attempted to contact “Sophia” and a colleague to alert them, but got no response.
“When I saw people couldn’t withdraw, it was the first time I thought something was up,” he explained.
“They told me it was someone hacking the account, I continued to message them but I heard nothing back.”
‘Devastating’
Since 23 November, Mark said he has had no contact with Coscoin.
He told the BBC he wanted to speak out to get people to understand that he and other group administrators were also caught up in the “scam”.
“It’s devastating. We thought we were helping people by fielding questions and showing people how the app works, but now some of the other admins can’t go home because people are threatening to go to their houses,” he added.
He said he had been threatened and others had received death threats.
“It was really bad – there are some people blaming us and they are sending threats but you can understand why they are angry, they have lost a lot of money.
“I have heard stories of people getting loans to put in, so that’s devastating for them, especially this time of year.
“I’m devastated – all my friends are at Nissan.
“I have nothing now, nothing at all, it’s heartbreaking.”
‘Too good to be true’
Mark said the app had spread through word of mouth among colleagues at Nissan. Other people across the North East have also said they have lost money.
A spokesperson for Nissan said it was aware that “some staff may have been affected”.
Mark added: “Looking back, it clearly was too good to be true, especially the Thanksgiving bonus, how could someone afford to double your money?
“I understand I was gullible, I was stupid, especially to leave my job, I’ve left everything behind.
“They are scumbags, absolute scumbags. They have no conscience in what they are doing.”
‘Fraudulent’
The Washington State Department of Financial Institutions called Coscoin “a fraudulent cryptocurrency trading platform” in a report in September.
Meta, which owns WhatsApp, said it has advice on its website which gives users advice to protect themselves from scams.
Northumbria and Durham police forces have advised anyone concerned to contact Action Fraud.
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