Ghana’s Global Coin Community Help – Not Even A Ponzi Like Menzgold

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That there’s a certain amount of greed out here among us humans is obvious enough. But we do normally have to be lured a little bit in order to give up our wealth rather than just handing it over to the fraudsters. One useful technique is to operate as a Ponzi scheme, like Menzgold. But there are simpler ways as Global Coin Community Help has just shown. Tell everyone you’re in crypto and people will fall over themselves to give you their money.

The Economic and Organised Crime Office (EOCO) has hauled the directors and shareholders of an illegal cryptocurrency firm – Global Coin Community Help – before an Accra High Court. The company is said to be an institution operating under a false name, even though it has not been licensed to operate by the Bank of Ghana or the Securities and Exchanges Commission. According to the anti-graft body, the suspects have defrauded over 3,000 unsuspected ‘investors’ who have pumped millions of Ghana Cedis into the company’s activities. They have succeeded in collecting a whopping GH¢47,239,000 from their depositors and have dissipated the amount within the one year of their operation.

That’s pretty much the whole story too. There’s nothing very much to add. They didn’t, as with Menzgold, dress this up in excessive returns to early and lucky investors, didn’t have a tale to tell. As Menzgold did:

The other thing to note is that they’re offering “up to 10%” returns per month. And they’re in the gold business. The two points are not compatible. It is simply not possible to be making a regular 10% per month return in the gold market. No, not even if you look to moves in the foreign exchange rate of Ghana and the USD and all that. Nor is there any clever operation with options, futures, differential time values or anything else which will make that sort of return. The global gold market is simply too large, with too many people in it, for that sort of arbitrage to be possible – the market’s too liquid for that. Thus someone offering 10% per month return on gold is offering a scam.

There wasn’t even any of that. The allegation at least is that Global Coin Community Help asked people to send them their money – to be put into crypto – and then they went and spent it. It’s not exactly a complex crime, is it?