A cryptocurrency investment app called Coscoin, which bills itself as an “AI quantitative trading platform” promising to double user investments, has sparked anger and confusion after users across the UK reported being unable to withdraw funds totaling thousands of pounds, according to a recent BBC report.
Coscoin, also known as Cos or Cosetek, is operated by having users transfer money into the app via a third-party cryptocurrency exchange called Kraken. Kraken facilitates the trading of digital currencies and is not accused of any wrongdoing. Once funds were deposited into their Coscoin account, users could invest the money and purportedly grow their balances.
After the Thanksgiving special offer, many could not withdraw funds
However, after a “Thanksgiving special” offer on November 23rd, during which users could further increase balances by pressing a button in the app, many found themselves completely locked out of their funds.
One affected user, Nik Pearce of Hartlepool, described feeling “angry” and responsible after encouraging friends and family to sign up as well, leading to estimated collective losses of £3,000. Though initially skeptical, Pearce invested after experimenting with small withdrawals, which seemed to work. “I thought it was legit because I could withdraw my money, and it did increase my initial investment,” he explained. “When I initially saw I could withdraw, I told my family and friends, and they signed up.”
Another report indicates that numerous employees at the Nissan manufacturing plant in Sunderland have lost money to the app. A Nissan spokesperson acknowledged being aware staff were impacted.
Enticing returns on investment
Victims say Coscoin offered enticing returns on investments and easy withdrawals up until a Thanksgiving promotion, after which account balances remain untouched and inaccessible. While some users saw balances climb over £3,000, attempts to take out funds have been unsuccessful. “They’ve got my money, and I want it back,” said Gateshead resident Ian Brown, who was drawn in from a tip at his auto body shop workplace and had invested £2,000.
The BBC contacted Coscoin’s listed Washington State address for comment but received no response as of publication time. The app has been removed from Apple’s iOS storefront as well.
Featured Image Credit: Photo by Alesia Kozik; Pexels
