crypto mining

Brazil-Based Minerworld Unable to Pay Back Investors Due to Lack of Funds

Minerword, the Brazil-based mining company which is under the scanner for allegations that it is a Ponzi scheme has said in a recent statement that the company does not have enough digital currency or Bitcoin to compensate its investors.

As per a court ruling, the company was ordered to utilize their financial resources to pay the investors the money that they had pledged in Minerword. Minerword in response to the court order said that it is unable to make the said payments. The reason for the inability to make the payments was cited that the remaining funds were spent on ending contracts with service providers as well as for keeping the operations afloat.

Allegedly, the company has requested for permission to publish the statements of its account for the past 4 months. Apparently as much as 50,000 investors will be adversely affected due to the company’s purported claim of lack of funds.

A variety of people have claimed that Minerworld is a ponzi scheme. The company has since then come under fire for running a pyramid scheme by Brazilian officials. In October 2017, the company had announced that it had lost as much as 851 Bitcoins owing to a phishing attack on the Poloneix exchange. It aroused suspicions among the investors since the exchange did not make any statements about any theft.

Further suspicions were raised when authorities got to know that Minerworld promised high returns on investments, as well as prizes such as imported cars, international vacations. Despite all the suspicions and the claims, Minerworld has clarified that they are not running a pyramid scheme, and that neither is their business model comparable to a multi-level business.

It is interesting to note that the Brazilian mining company is currently also facing investigations from the Paraguayan authorities. In fact, Minerworld was labelled as a hoax by Paraguay’s securities commission.