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To add to his credibility many trusted members of the Litecoin Forum either promoted the scam as affiliates or gave tacit approval.
What may have started as a legitimate hosted mining operation appears to have turned into a full blown ponzi scheme in August 2014 when Chris introduced an affiliate program to help him sell q ASIC shares.
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Sales were brisk and a new product was soon introduced called ‘q ASICS’ mining shares; supposedly based on custom ASIC chips he had manufactured for him in China.
Shares cost about per m H/s and offered return on investment in as little as 6 weeks.
Red flags should have been set off for everyone investing but the promise of easy money was too much for many to resist.Fibonacci began accepting payment for pre-orders of scrypt ASIC miners in March 2014, encouraging customers to pay not only with bitcoin and litecoin but a new altcoin called Cache Coin he had developed.The company claimed they would beat Kn CMiner to market and would deliver their litecoin miners in late summer 2014.He posted using the handle ‘beekeeper’ at the Litecoin Forum and was actually first to market with a successful commercial litecoin miner based on an FPGA chip; up to then litecoin was mined using a GPU graphics card.He claimed 15 years experience in FPGA design and did earn a Bachelor’s Degree in Computer and Informatic Science from the Polytechnical Institute of Bucharest in 2000.While Mt Gox remains the largest bitcoin scam to date there have been others, some not as well known, causing investors to lose millions of dollars.