Cryptocurrency Exit Scams with Aaron Lammer

We often make the assumption that if something is the biggest or the oldest, it should be trusted or it wouldn't have grown so large. But when it comes to cryptocurrency, this may not always be true.

Today's guest is Aaron Lammer. Aaron is the founder of Treats Media which produces original podcasts and work for clients. Original works include the critically-acclaimed mini-series Exit Scams and multiple seasons of Stoner and CoinTalk. Aaron is also the co-founder of Longform.com and host of the Longform Podcast.

Show Notes:

• [1:16] - If you've heard about a large amount of cryptocurrency being lost, you have heard about hacking. But Aaron shares how it could be a false narrative.
• [2:56] - There's not as much risk when internally stealing cryptocurrency.
• [4:04] - Aaron tells the story of Quadriga and its founder, Gerald Cotton.
• [5:03] - The estimated amount of cryptocurrency lost in 2018 was $250 million. But that money scales up over time.
• [6:21] - The people who were brought in to help with this case found a lot of things using the only clues they had: financial records.
• [7:36] - People who knew Gerald Cotton were convinced by him. Bitcoin also appeared more trustworthy than newer companies.
• [8:39] - Why do people trust the company that has been around the longest?
• [9:40] - Aaron explains how Cotton simulated fake volume.
• [11:05] - There is a lot of discrepancy on Cotton's death, but regardless, Aaron explains how his fraud and Ponzi Scheme played out.
• [12:58] - When the exchange started to crash, Cotton likely feared being found out.
• [14:20] - For a long time, there was a lot of smoke and mirrors surrounding where the actual money was.
• [15:30] - There is an unaccounted for amount of money missing from the money taken by Cotton which has created doubt that he is deceased.
• [17:02] - Chris and Aaron discuss common themes in Ponzi Schemes.
• [19:24] - Just in the last week since recording this episode, there have been huge drops in cryptocurrency exchange. Aaron believes two of them are exit scams.
• [20:37] - Aaron shares a recent report about Afri-crypt and how he is suspicious of the figures.
• [22:19] - Often in Ponzi Schemes, there are inflated daily or monthly returns.
• [25:32] - The common theme is "otherworldly returns" that leads people down the path of falling victim to an exit scam.
• [26:47] - What is a safe way to invest in cryptocurrency exchange?
• [28:02] - There is a difference between "guaranteed" returns and returns over time.
• [30:20] - There is an issue with panic in cryptocurrency exchange.
• [31:58] - Aaron recommends going with larger companies regarding cryptocurrency and lists some red flags to look for.
• [33:27] - Any setting where it is obviously easy for someone to run away with tons of money is problematic.
• [34:39] - If you have a lot of investment in crypto, tell your partner and family how to access it in a will.
• [36:10] - Be careful and don't put all your eggs in one basket. If something happens to one wallet, it isn't catastrophic.
• [36:57] - Cryptocurrency is not necessary to invest in. It is risky.

Thanks for joining us on Easy Prey. Be sure to subscribe to our podcast on iTunes and leave a nice review.

Links and Resources:

• Podcast Web Page
• Facebook Page
• whatismyipaddress.com
• Easy Prey on Instagram
• Easy Prey on Twitter
• Easy Prey on LinkedIn
• Easy Prey on YouTube
• Easy Prey on Pinterest
• Longform Podcast
• CoinTalk Podcast
• Exit Scam Podcast
• Exit Scam on Twitter
• Aaron Lammer on Twitter
• Aaron Lammer on LinkedIn