A few weeks ago, we briefly discussed a service called My Wallet Ltd., a UK-based company looking to buy all of your Bitcoin at a 10% above-the-market premium rate. While there remain a lot of uncertainties regarding the legality of this service and whether or not you should sell them your Bitcoins, a similar service called BTCLowen has popped up.
The reason I come across these weird bits of news is because, unlike most crypto journalists, I do keep an ear to the ground regarding sources that are not “inside” the Bitcoin ecosystem. Luckily for all of our readers, this also helps us in detecting possible scams whenever a service is offered that is too good to be true.
My Wallet Ltd. and BTCLowen are operating on the same shady tactics. Buy Bitcoin at a 10% premium, use Bitstamp to determine the current Bitcoin price, and offer exactly the same payout methods for people selling them their Bitcoins. On top of that, both services cover all fees associated with these payment methods, which make it all a bit too obvious as to what is going on here.
But that is not all. Both companies have released a press release on major PR sites such as PRNewswire, and they are nearly identical. According to this press release, both companies have conducted US$/GBP 2.3 million worth of transactions – during which they buy Bitcoin, allegedly – before anyone has even heard about them.
Note from the Author: The original press release issued by My Wallet Ltd. has been conveniently deleted, but the URL still exists on PR Newswire.
However, there are some differences to be spotted as well. Whereas My Wallet Ltd. will buy up to 450 Bitcoin per transaction, BTCLowen has set a limit of maximum 50 BTC per purchase. Plus, their website design looks slightly different compared to the My Wallet Ltd. website, even though both look far from professional.
Note from the Author: The MywalletBTC website – which is the site used by My Wallet Ltd – has exceeded bandwidth limitations. Hmm…
There are plenty of warning signs regarding this website being run by the same people who ran – and abandoned – the My Wallet Ltd. scheme. Similar services, nearly identical press release, same modus operandi….And the offer remains far too good to be even remotely true, as no one will buy your Bitcoin in massive quantities for a 10% premium.
However, as I have not tested the service personally, it remains hard to judge whether or not these sites are scams. There is a huge possibility that you will never, ever, receive your money. But I’m sure they would pay out a handful of people in the hopes of luring in bigger fish who will gladly sell tens of bitcoins at a time.
All images courtesy of Shutterstock
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