Unusual Dogecoin (DOGE) transactions lead to the discovery of a Ponzi scheme

A series of unusual DOGE/USD Dogecoins recovered by the DOGE community led to the discovery of a Ponzi scheme operated by a UK-based company.

What happened: Popular members of the DOGE community, including Mishaboar, RepeatAfterVee, and CalisCahin, tracked a series of spam transactions on the Dogecoin blockchain to uncover a crypto scam, reported CyberNews on Tuesday.

The unusual spike in DOGE transactions was first observed on July 17. At the time, market participants attributed the rise in daily transactions to tips from the meme sharing feature on the MyDoge wallet.

On closer inspection, the famous Dogecoin news account Mishaboar discovered that these were probably spam transactions.

Further analysis by CalisCihan and RepeatAfterVee revealed that the wallet behind these spam transactions was operated by Huilo Invest LTD HYIP.

Huilo markets itself as a "high yield investment platform" providing users with 9.9% hourly return in 13 hours.

The DOGE community was able to uncover the true nature of the platform that defrauded users of US Dollars, Bitcoin BTC/USD, Ethereum ETH/USD and Litecoin LTC/USD in addition to DOGE .

Although the last DOGE spam transaction was sent two days ago, RepeatAfterVee pointed out that the IP address registered on the crooks' account is currently used by 9 different projects.< /p>

"Good job gentlemen," commented DOGE co-founder Billy Markus on Twitter. "It sucks that the uptick in deals wasn't organic, but alas."

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