How to Recognize a Crypto Pyramid Scheme and Protect Yourself

 How to Recognize a Crypto Pyramid Scheme and Protect Yourself




Just recently, a massive pyramid scheme collapsed overnight in Croatia, leaving thousands of people without their invested money. The scheme was run through an app called Xuex, linked to so-called futures trading in cryptocurrency.

Reports say that many citizens invested anywhere from €1,000 to several thousand euros — only to wake up and find their money gone. A few lucky ones managed to withdraw in time, realizing something was off.

This is a wake-up call for anyone interested in cryptocurrency or “quick profit” opportunities.

How the Scheme Worked

  • Investors were asked to install the Xuex app, join a Telegram group, and open a Revolut account.

  • Promises were made that investments would double in just 50 days, with “daily signals” showing fake account growth.

  • Growth of the scheme depended on recruiting new members, with bonuses offered for each referral.

  • The scheme was promoted through lavish dinners and meetings to lure in more victims.

  • Experts confirmed it was a classic Ponzi scheme, where money from new investors is used to pay older ones.

Warnings from Experts & Authorities

  • Cybersecurity experts warned this was part of a known fraud model called “Pig Butchering” scams (sha zhu pan) that spread across countries.

  • The Croatian police and government issued warnings: never trust strangers promising quick and guaranteed profits.

  • Security specialist Alen Delić also reminded victims not to trust anyone claiming they can “recover your lost money” for a fee — that too is another scam.

How to Protect Yourself – Key Guidelines

Red FlagWhat You Should Do
“Too good to be true” promises of doubling your money fastWalk away immediately – it’s a scam.
Unknown, unregulated platformsAlways verify legitimacy and licensing of investment platforms.
Urgency to invest nowTake your time, research, and never invest under pressure.
You must invite others to earnClassic pyramid scheme sign – stay away.
Someone offers to “get your money back”That’s often a second-layer scam – ignore and report it.

Conclusion

The collapse of this crypto pyramid scheme is yet another reminder: there is no such thing as quick money. Staying alert and financially educated can protect you from losing your savings.

If you come across offers that sound too good to be true — report them to the authorities in your country (police, financial regulators, banks).

Question for Readers

👉 Have you ever been in a similar situation with a suspicious investment? Share your story in the comments — it might help others avoid the same mistake.

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