Consumer complaint received 2022-12-28
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: CONST LLC (MD)

Hello, This complaint is to report intentional and pre-meditated criminal theft, embezzlement, fraud, wire fraud, fraudulent inducement, running a Ponzi Scheme, misrepresentation, forgery, attempting to destroy evidence of wrongdoing after the fact and conspiracy by the offenders named below. 

OFFENDERS MyConstant ( Legal Name : CONST LLC ), with website ( XXXX XXXX XXXX XXXX, phone number XXXX and email XXXX. XXXX main operating office in XXXX is at XXXX XXXX XXXX, XXXX, CA XXXX. 

XXXX founder and owner is XXXX XXXX. 

Autonomous, alias, XXXX XXXX ( Legal Name : XXXX XXXX XXXX ), with the website ( XXXX XXXX XXXX XXXX 

XXXX XXXX XXXX in the XXXX is also at XXXX XXXX XXXX, XXXX, CA XXXX. 

XXXX XXXX, founder, and owner is also XXXX XXXX. 

XXXX  XXXX Location is : XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX, XXXX XXXX XXXX, XXXX XXXX XXXX is on the XXXX and the XXXX floors. 

XXXX XXXX, founder, and owner of both XXXX  and XXXX, with a XXXX Address at XXXX XXXX XXXX XXXX, XXXX XXXX, New York, NY XXXX XXXX XXXX XXXX, XXXX of XXXX XXXX XXXX ( Full Name : My XXXX XXXX XXXX ), XXXX XXXX XXXX XXXX with California XXXX XXXX at XXXX XXXX XXXX, XXXX XXXX, CA XXXX XXXX XXXX XXXX, XXXX  XXXX for customer funds, with principal office address at : XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX, NV XXXX IMPACT They have scammed me and over XXXX other unsuspecting normal investor consumers and customers of over {$22.00} XXXX collectively. The offenders acting individually and collectively have scammed me of over {$240000.00} in USD, XXXX XXXX  ( XXXX XXXX, and almost XXXX XXXX XXXX XXXX ) to date. Original principal investments are of {$210000.00} USD, XXXX XXXX and XXXX XXXX. 

Victim Details : Name : XXXX XXXX XXXX Primary email : XXXX Attached a simple spreadsheet showing the deposited prinicipal funds as noted above, along with transaction numbers issued by XXXX. More detailed information ( e.g. hashtags for crypto transactions ) is not accessible to members since the site has shut down. 

Issue in a nutshell : XXXX is a peer-to-peer lending platform that matches borrowers and lenders. They take a small matching fee from the borrowers for providing this service ( Per their Terms and Conditions ). The borrower deposits a cryptocurrency collateral that is XXXX % of the value of loan with XXXX 's custodian, XXXX XXXX that is to be locked in a " smart contract '' that sells off the collateral automatically if the value dips below 110 % of lender 's principal + interest during the period of the loan. After the loan matures, the borrower pays back the loan with interest and gets back his collateral/security. 

The problem is that XXXX stole lender 's monies and matched lenders to borrowers who largely did not exist. Neither did the collateral exist. They then instead funnelled customer money and gave their founder 's other company, XXXX, unsecured loans. They made risky bets with the rest of the customer money on something known as the XXXX protocol, so that they could make way more ( 15 % ) than the advertised matching fee of 3.5 %. When XXXX XXXX  crashed in XX/XX/2022, they papered over the issue, and started soliciting even more money from customers at higher interest rates and basically ran a Ponzi Scheme that none of the customers were even aware of. 

This is what led to the current situation, when they could not get any more money from investors and the situation turned unsustainable for them. I hope this clarifies things, if any additional information is needed from us, please let me know and I will provide it at the earliest. Once again, thank you so much for all the help, and I really hope justice will be served.