The recent announcement from the LS Team regarding the termination of its partnership with KBS Exchange has left many Filipino investors in a precarious situation. Following the migration to the unlicensed AUX Exchange, numerous investors now find their assets frozen, raising alarms about the legitimacy of this scheme.
Analysts have noted signs of distress, including claims of a “shortage of funds” and the introduction of “recruit-to-withdraw” policies. These behaviors are often indicative of a financial collapse, leaving victims scrambling for solutions.
If you believe you have fallen victim to this scam, it is crucial to take immediate and decisive action. Here are the necessary steps to safeguard yourself and assist authorities in their investigation.
Stop All Deposits Immediately
The first step is to cease all transactions. Do not send additional funds or engage with any platforms that may request deposits to release your existing assets. Scammers frequently exploit victims” emotions through the “sunk cost fallacy,” convincing them to invest more as a last effort to recover their losses. Remember, reputable exchanges will never ask for new deposits to access previously held funds.
Gather and Preserve Evidence
Collecting evidence is vital for any potential legal actions. Do not delete any applications or exit group chats associated with the scam. Ensure you have the following documentation ready: transaction records, communication logs, and screenshots that detail your interactions with the involved parties.
Report to the SEC
Once you have gathered your evidence, report the incident to the Securities and Exchange Commission (SEC). This agency plays a crucial role in regulating investment scams, and the LS KBS/AUX scheme may involve the offering of unregistered securities.
File a Complaint with Cybercrime Authorities
The National Bureau of Investigation (NBI) and the Philippine National Police (PNP) have dedicated cybercrime divisions that can assist in investigating online fraud. Filing a complaint with these agencies is an essential step in seeking justice for your losses.
Avoid Recovery Scams
Following the collapse of a scam, victims often face a second wave of fraudsters claiming to be “Recovery Experts.” Be cautious; only law enforcement agencies in conjunction with legitimate exchanges can freeze or recover assets. Any entity promising to “hack back” your funds is likely another scam.
In the wake of this troubling scenario, it is imperative for affected individuals to remain vigilant and informed. The crypto landscape is fraught with risks, and understanding how to respond in the face of fraud can make a significant difference in mitigating losses.
