• Market Cap
    $400.145B 0.38%
  • POW Market Cap
    $308.249B 0.96%
  • POS Market Cap
    $19.924B 0.09%
  • Masternodes Market Cap
    $1.238B 1.71%

Hex project organized an exit scam stealing all investment funds

By Inkarias - 2020-01-08

Hex project used a kind of POS system to reward their investors in the long-term. CDs, mainly known as the Certificates of Deposit or Time Deposits were announced to be worth more than gold, credit card companies, or even cash by paying higher interest than savings accounts but still requiring money be deposited for a fixed time. HEX vision was to take the profit out of banks and government money printing and gives it to HEX holders directly with this system. However, on January 6 , around $7 million worth of ETH were withdrawn from an address associated with the HEX cryptocurrency after weeks of speculation that it was headed towards an exit scam. The funds were transferred on Jan. 6 through 36 separate transactions, with each one withdrawing exactly 1,337 ETH, worth around $192,500. According to the data registered on Ethereum blockchain explorer Etherscan.io, the main address associated with HEX has been now almost completely emptied out from the previous funds.

A short history for HEX

Originally launched on Ethereum via a Bitcoin UTXO snapshot on Dec. 2, HEX team announced to be able to offer around 10,000x returns in under 2.5 years, a juicy and unprecedented claim that might have hinted at a problem in the system. Richard Heart, the founder of the project, managed to receive over 33,000 ETH in investments for the project. However, investments in HEX looked more like donations to a personal address than a token sale, as all of them were held in a single Ethereum address that was supposed to be inaccessible. Then from Dec. 12 to Dec. 23, more than $115,000 worth of ETH was withdrawn from the address, leading many to suspect that it was the beginning of an upcoming exit scam. With all the funds now gone since the 6, it is therefore recommended to stay away from this project as soon as possible.