Estonia is a northern European country with the highest literacy rate in the world. The French regulatory authorities recently noticed a huge scam operation that was centred on a company based in Estonia. The scammers were offering their consumers a chance to invest in cryptocurrencies managed to get away with 40-58 million euros from hopeful investors hailing from all parts of Europe.
The main company behind the incident is known as RR Crypto and is running under the supervision of a head named Vincent Ropiot. The company told their investors that they were facing technical issues due to the changes made in the Binance exchange. It is quite common for the scammers to ask for more time as they were preparing to fold operations and run away with the investor’s money which also happened in this case.
A media outlet based in France called Journal Du Coin conducted a private investigation into the case of RR Crypto. On paper, the main scam company was based in France. However, it was established by a company that is still operating in Estonia under the name RoiRising Crypto OU. The French publication also reached out to the investors who lost money with the scam.
As per a careful estimation, the amount of loss per victim has been estimated to be between 500-350,000 euros. The case has been handed over to Dijon court, and further investigation from the state is still going on. The RioRising Crypto OU is a subsidiary of Eesti Firma OU, which is another enterprise based in Estonia. In addition to the old board members, a new suspicious member recently joined the board called Karmo Neider.
State Authorities are Investigating Scam Mastermind
Karmo Neider is not an unfamiliar name for the financial regulators in Europe. According to the correspondence between FIU France and FIU UK, Neider was also a person of interest in the fraud organization case called AlephLink Solutions Ltd. OU, where he was also serving as a board member. For the time being, the financial intelligence unit (FIU) has taken him into custody and revoked the license of his company.
Despite the high literacy rate of the Estonian people, they were unable to recognize the red signals of the crypto scam. On the other hand, the Estonian authorities are revoking licenses of the fake companies, but they are unable to put a stop to such criminal activities under their jurisdiction. The main reason for the lack of control over crypto scams in the region is that it is a very lengthy process to find out the real origin of the said company and take any legal action against these threat enterprises.