Crypto Eats: the elaborate food delivery scam that stole half a million dollars and disappeared

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Crypto Eats: the elaborate food delivery scam that stole half a million dollars and disappeared By Hannah perez

The platform promised to be the next Uber Eats, but based on cryptocurrencies. It was promoted by influencers and even threw a party in London before it vanished from the internet.

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Some will say that scammers only have an appetite for one thing: money, and fast. Within the world of cryptocurrencies this is not much different. Every week a new crypto-scam It manages to fool less experienced investors and sometimes even the most influential people.

Crypto Eats, a startup touted as the next sensation among food delivery apps, disappeared after duking its users out of half a million dollars. The fake platform, which gave away T-shirts, found the support of influencers and even threw a party before fading away, it’s arguably one of the most elaborate crypto fraud stories in recent times.

Allegedly based in the United Kingdom, the platform promised to offer a home delivery service similar to UberEats; only that with the difference that users would have the option to pay with cryptocurrencies. The project also included a native token, named EATS.

An overly elaborate scam

The company issued a seemingly legitimate statement announcing the launch of its token, and ensuring the backing of various investors. However, it all turned out to be a lie. After carrying out a first sale of tokens, CryptoEats disappeared taking the money of investors. The news medium Vice reported first.

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Like many successful scams, the startup of CryptoEats it had many elements that made it look like a legitimate business. A press release claimed that the company had raised USD $ 8 million in a round of financing. The ad also claimed deals with McDonald’s and other well-known restaurants, and also claimed to have hired many delivery men. The news medium CryptoNews quoted an excerpt from the statement:

Crypto Eats will soon be proud to announce its arrival sooner rather than later as it aims to launch in early 2022 or before the end of the fourth quarter of 2021.

The web portal of Yahoo Finance!, and service GlobeNewswire, which is used by many legitimate tech companies to run press releases, published the note. However, at the time of publishing, this statement has been removed from both portals.

In accordance with Vice, the startup guaranteed to be based on a “algorithm-based Blockchain implemented software“, Which guaranteed it to compete head-on with popular services such as Uber Eats and Delivaroo. The platform had a web portal and its respective social media accounts, like all 21st century businesses, and it mentioned a supposed founder, named Wade Phillips.

CryptoEats He also stated that he would have “hundreds of restaurants to choose from”And promised unusual features, such as the ability for users to order items from different restaurants in one order. The promises included the coffee delivery “in five minutes“, A pension contribution to potential workers and even a fixed salary.

Influencers promoted Crypto Eats

Beyond the alleged capital raised and the promises of the statement, the application managed to be promoted by several influencers. DJ Charlie Sloth, who has a million followers on Instagram, promoted the company and its app, according to Vice. Also the tiktoker and personal trainer, hstikkytokky, recommended the company and announced to its 387,000 followers about the launch of the token.

The coin will be released on October 17. All I’m saying is use your brain. They have more money than they know what to do[…] In a week, in a month, in two months, that company could become the UK’s largest food delivery app, and it hasn’t made the list yet.

Joey Essex, a TV show celebrity, also promoted the scam. Most of the influencers have taken to social media to lament the situation. None of the reports revealed how much money was paid to the influencers for posting the promotional content.

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According to reports, startup even got promoters to wear branded delivery uniforms Crypto Eats in his videos and also held his own launch event. The fake company hired people to wear branded hats, shirts and bags in the videos and apparently threw a party in London, where they had the bicycles that the delivery men would use with the image of CryptoEats, reported Vice.

Nothing is true: scammers walk away with $ 500,000

Despite all the paraphernalia, nothing was real. In fact, the identity of alleged founder Wade Phillips doesn’t even exist, according to reports. As such, the project’s promises faded shortly after the launch of the token EATS.

I agree with you records of Blockchain, the wallet address of the developers of Crypto Eats transferred approximately USD $ 500,000 in Binance Coin (BNB) to various wallets just before the project completely disappeared from the internet without launching the promised app. The website of CryptoEats and their social media accounts quickly went offline shortly thereafter.

Upon launch, the token EATS Coin, based on Binance Smart Chain, featured a glitch when users tried to exchange currency through decentralized exchange PancakeSwap; according to user complaints.

Hopefully the whole thing could serve as a lesson. Although the project seemed to have a solid idea behind it, and its members certainly cared to make it look like a legitimate project, there were some red flags. In addition to the somewhat exaggerated promises, the language of the press releases – written in poor English – could serve as a warning to users.


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Article versioned by Hannah Estefanía Pérez / DailyBitcoin

Image from Unsplash

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