SCAM: Crypto Punisher Makes Off With Masternode Cash; Discord Channel Gathers Info For Authorities

It seems like every day a new scam is born in the middle of the crypto community. Today is no different – and the latest alleged fraudster is known on twitter as CryptoPunisher aka Richard Delorey from Lowell Massachusetts.

Delorey is being accused of running off with potentially hundreds of thousands of dollars in various cryptocurrencies. Delorey allegedly organized and ran numerous shared masternode pools where it was not uncommon for complete strangers to routinely send him upwards of thousands of dollars based on his outstanding reputation within the crypto community.

Masternode pools are typically run by third parties that collect and gather funds to purchase a specific masternode while that same party is responsible for dispersing payments to all of the participants. As of this morning, Delorey has not only cashed out numerous shared masternode’s but has since deleted his entire social media footprint.

A discord channel was quickly created where over 60 members claim to have been defrauded by him and have since provided numerous allegations, screenshots, and seemingly never-ending evidence of his fraudulent behavior.

As of early this afternoon, a Google document containing all of Delorey’s personal information as well as details of his fraudulent activities was being created and being turned over to local authorities. Stay tuned as new details are quickly emerging.

This will be one to watch very, very carefully as we expect, at a minimum, local authorities to get involved and hunt down Mr. Delorey.

A telltale sign of an executed scam is the deletion of any and all social media accounts, so as to give the signal that one has vanished and disallowing a focal point for a platform spread the word connected to a username or Twitter handle.

 

***What follows is a long-form communication from just one of the scammed individuals and Crypto Punisher:

CryptoPunisher02/21/2018

I’ll be holding the coins on my Windows wallet. I’ll message you for the coins in 4 hours.

AJ02/21/2018

Sure. Don’t have any coins at the moment. Am finding out more info..

CryptoPunisher02/21/2018

That’s ok

AJ02/21/2018

Caratus-No link to explorer, no mac wallet… sketchy road map…

unresponsive on social media..

next to no community

Motile on the other end… complete opposite…

will investigate further..

CryptoPunisher02/21/2018

They’re brand new

Go on masternodes.online and join their discord

AJ02/21/2018

I’ve gone with Motile. They were already on my watchlist and I’ve completed DD. Coins acquired. I’m out for a few hrs, so ping me your address and I will send them over.

When do you anticipate I will start earning?

CryptoPunisher02/21/2018

I’ll send you my address in a hour

It should take a couple days for MN earnings

Fridays

How many coins are you sending me

AJ02/21/2018

I have 1420, so about 28%. To confirm you will pay the weekly rewards in MIE(they have a mac wallet) so have that set-up, encrypted and backed up, and can receive/send tokens

*28% of MN collateral

CryptoPunisher02/21/2018

Ok. I need the tokens when I get home

I will hunt to will the reat

Rest

February 22, 2018

AJ02/22/2018

Read your msg last night then lost internet connection.

Send me your wallet address..

CryptoPunisher02/22/2018

They’re on the discord group

Look at the section called Masternode pool info

AJ02/22/2018

Found it.

Now unable to send from wallet. In touch with devs

CryptoPunisher02/22/2018

What’s the problem?

Did you take a .001 fee out before sending?

AJ02/22/2018

Keep getting redirected to passphrase, even though wallet is showing as unlocked in bottom right hand corner

Screen_Shot_2018-02-22_at_10.34.09.pdf

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CryptoPunisher02/22/2018

Nice, idk what your problem is. Haven’t had any problems yet

AJ02/22/2018

Me either. restarted wallet and it was locked, enetred passphrase and unlocked it, as padlock became unlocked in right hand corner…still getting directed to enter passphrase when making transaction..

AJ02/22/2018

Devs are investigating..

will come back to you when I know more..

AJ02/22/2018

Appears to be resolved.

I’ve sent a test transaction: TX ID:3b32f06b3fec66e3f77f195500784f35d4f11dd548ee8354075545be12f2009b-000

Once you confirm receipt, I will send the remainder

Transaction confirmations completed my end

CryptoPunisher02/22/2018

How many coins did you send?

Just to confirm.

Someone else just sent 1000

AJ02/22/2018

20.05 as a test transaction

CryptoPunisher02/22/2018

Ok.

AJ02/22/2018

received?

1400 more to come

CryptoPunisher02/22/2018

Yes

Go ahead

AJ02/22/2018

JUst sent the other 1400..TX ID:e77d3e0f1b46a5c6afceb283139f317a0c8065935f4c8d277589e9d77fa73133-000

CryptoPunisher02/22/2018

Perfecr

I’ll add you to list

AJ02/22/2018

thank-you

AJ02/22/2018

Balance received?

CryptoPunisher02/22/2018

Yes

CryptoPunisher02/22/2018

Now we only need 1400 more coins to start the node

CryptoPunisher02/22/2018

What’s your recieving address? And would you like to recieve in BTC or MIE?

Just need it on record

February 23, 2018

AJ02/23/2018

MWrnJ7y336WEQJyCFvstsXFapJLmxvPCD6- MIE Pleaese.

CryptoPunisher02/23/2018

Thanks

March 4, 2018

CryptoPunisher03/04/2018

I need to pay you in BTC

Please give me your BTC payment address

Waiting on you

AJ03/04/2018

18KTQyyVE8g5hxrHLNH4CwJyS8zrCmNjfD

What happened to our agreement to be paid in MIE?

CryptoPunisher03/04/2018

Worked out harder that way.

30 people wanted BTC, 2 wanted MIE

Paying you in MIE, means I have to dump a ton of coins and ruin the market

Get what I mean?

If I dump 5000 coins a week, the price will go down

AJ03/04/2018

I can see that.

CryptoPunisher03/04/2018

Ok. So we good?

AJ03/04/2018

So your holding MIE and using your own BTC?

CryptoPunisher03/04/2018

No.

Selling to developers of MIE and private buyers on their discord

AJ03/04/2018

Interesting. Good idea.

CryptoPunisher03/04/2018

Payout sent

Instead of dumping 5000 coins, and having the market crash, I sell to private buyers and get a better price, and it helps the market stay balanced. I don’t have to dump to buyers

.0419 BTC sent

AJ03/04/2018

An idea to provide transactional evidence for the first few MN payouts, along with the exchange.

Thank-you

CryptoPunisher03/04/2018

>_>

AJ03/04/2018

payment received

CryptoPunisher03/04/2018

No prob

AJ03/04/2018

I’m using blockchain.info wallet, rather than my Nano S…

It generates a new address for every receiving transaction!

will you DM every sunday for new address?

CryptoPunisher03/04/2018

No that’s not how it works bud

Every address will continue to work.

Just like coinbase

Every time you ask for an address it generates a new one

But old one still works

AJ03/04/2018

Ah, ok. First time using it. That’s way better with the single address

CryptoPunisher03/04/2018

Yup!

March 9, 2018

AJ03/09/2018

How long is the 3400% return on DIXI for?

is the rate inflationary or deflationary afterwards?

CryptoPunisher03/09/2018

It will slow down eventually

March 11, 2018

AJ03/11/2018

Yes, leave the payout for the moment, given the USD price drop with MIE

CryptoPunisher03/11/2018

Ok sir

March 12, 2018

AJ03/12/2018

I will take 0.2 BTC on XAP masternode

CryptoPunisher03/12/2018

Ok. Send it

3BAi7wnwCPjeKU6AR1DZ6i2Txim5ju8r72

AJ03/12/2018

Will you buy the XAP coins or already have them?

And what date will MN be set-up ?

Also, weekly payouts and exit terms?

CryptoPunisher03/12/2018

I buy coins from devs

The next couple days

AJ03/12/2018

payouts in BTC, and weekly?

CryptoPunisher03/12/2018

Yes

AJ03/12/2018

cool. Am off to sleep as it’s v late here… will send the 0.2 BTC in the morning!

CryptoPunisher03/12/2018

You suck!

I can buy the node today if you pay now lol

It’s 3PM here

AJ03/12/2018

haha, u have a sense of humour 

CryptoPunisher03/12/2018

Course

AJ03/12/2018

Will msg the TX ID when done

What Pool am i in for XAP MN?

as in MN1?

CryptoPunisher03/12/2018

Yes

1

If you pay now

AJ03/12/2018

All done.

Sent from Ledger.

I believe this is TX ID: 3BAi7wnwCPjeKU6AR1DZ6i2Txim5ju8r72

AJ03/12/2018

Let’s try again! TX ID: 6b5a2f7c98869226386d00cd0ea1814be0b419f6962e8a51f724bbf3473bc39e

Confirm receipt 

CryptoPunisher03/12/2018

Ok I got it haha

CryptoPunisher03/12/2018

What’s ur address

To pay

You

March 13, 2018

AJ03/13/2018

17Y28mSsJ8mCBHjbhBQBB9xf76uNAdZErV

Label it XAP

CryptoPunisher03/13/2018

I want a BTC addresss

AJ03/13/2018

18KTQyyVE8g5hxrHLNH4CwJyS8zrCmNjfD

CryptoPunisher03/13/2018

I have your old address I’m gud

March 25, 2018

AJ03/25/2018

Agree with the reinvest idea on MN’s whose price has crashed…No sense in doing payouts, may as well increase holdings, and wait for a bounce.

Counter issue is that we may well control a lot of coins and then be a market maker on selling for BTC

An idea to sell the MN cashflow to the devs…

The more coins we hold, the more difficult it is to exit, without affecting price

What’s our plan in this eventuality?

CryptoPunisher03/25/2018

Plan is for market to be stable eventually and exit slowly

April 1, 2018

AJ04/01/2018

What time is the payout today chief?

And what timezone are you in?

XAP MN

CryptoPunisher04/01/2018

EST.

Later tonight

It’s easter

April 8, 2018

AJ04/08/2018

You mentioned in the chat this morning, that XAP has been paid out, aside from MN’s 4-5. I’m in MN 1 and no payout received as yet

CryptoPunisher04/08/2018

Weird ok nbd

AJ04/08/2018

Don’t understand dude. nbd?

CryptoPunisher04/08/2018

I’ll look into it.

AJ04/08/2018

thanks

April 9, 2018

AJ04/09/2018

To clarify, no XAP MN payments have been made yet, and the 1st one will be Sunday 15th April?

CryptoPunisher04/09/2018

Yes sir.

Dig through all my notes

13k coins ready to sell and some BTC ready from past sells

AJ04/09/2018

Been scrolling through trying to make sense of it all

All good.

Like the idea re MN viewing…I believe in transparency

CryptoPunisher04/09/2018

I do too

Just a lot of witk

April 18, 2018

AJ04/18/2018

I think some transparency is required:

https://xap.overemo.com/address/any5jbnod1svpsssj8tyjvktzlrxdatmft

CryptoPunisher04/18/2018

What is that?

25,000 XAP sent?

AJ04/18/2018

Yes

And the MN ref that’s been given on the MN list you created, it’s not listed on apolloncoin.io list of MN addressses

Also, there is only 2 transactions against this address

1) Acquisition

2) Exit

MN 2: https://xap.overemo.com/address/aj4lajvzxghywbirfqnh8h1eezoakxjnvt

Working

MN 3: https://xap.overemo.com/address/akef3wevrjvtsqtrcya6wujg5nqzlxlb5i

Working

MN 4: https://xap.overemo.com/address/auawfrmxc4tqvg6fs9h1p8qeatiqk2uvbh

Working

MN 5: https://xap.overemo.com/address/abhb5wvg4qpqjkputa6eefexgptuxtqx2k

Working

Payouts are nowwhere near in line with rewards.

Some fvcker is having our eyes out. Period.

AJ04/18/2018

payout should of been 0.608 TOTAL, based on rewards from MN 2-5

MN 1-someone has to explain.

April 19, 2018

CryptoPunisher04/19/2018

Wait wtf

Which masternode isn’t making rewards?

You said it only sent and received coins?

CryptoPunisher04/19/2018

I’ll tell my developer to fix whatever is wrong with MN1

CryptoPunisher04/19/2018

I got those XAP nodes sorted out

Just paid the developer $250 to fix them all

XAP MN1 – https://xap.overemo.com/address/AScWTRwDyWSN9m8Vivx83Aoaos8d8ommP6 XAP MN2 – https://xap.overemo.com/address/AWvEwGMpFaHvCHSGUchsYw4r4fzsHx2FF1 XAP MN3 – https://xap.overemo.com/address/ASPBnVLYuYrKTmKVKk6BCHz2oxg3T3VJ9b XAP MN4 – https://xap.overemo.com/address/AHDTxP7DFS5LFvdGNHxrL8YDxd9aAs22sm XAP MN5 – https://xap.overemo.com/address/AZMS9dHRA61tR1AYxDh4LHV4wEVx59VGVh

Gtg to bed talk layer

AJ04/19/2018

MN 1 not making any rewards-ever.

Yes-sent and received the exact same amount of coins. Looks like a clean EXIT.

0.39 BTC paid out, yet the total should of been 0.608.

Who is taking responsibility for the zero rewards in MN 1?

Severe lack of transparency and accountability..

Let’s work together to rectify the errors detailed above

Also add that the average of the 4 working MN’s =0.15 BTC, so add that for MN 1 not working and we are at 0.758 BTC as a payout

CryptoPunisher04/19/2018

Yeah I just had dev redo collaterals and he said they should all work now

He has been thinking MN1 was working

AJ04/19/2018

As a DEV he should know to check.

And the BTC reward v payout difference?

CryptoPunisher04/19/2018

He puts them online, and usually checks. He thought it was online apparently.

AJ04/19/2018

This is a lesson for someone within the MN groups to check all MN’s once/24 hrs

CryptoPunisher04/19/2018

I had to pay him 0.21 BTC last night to fix everything

He told me he would.

That’s why he gets paid so much. To keep checking everything.

AJ04/19/2018

That’s nonsense. There is no transactions on MN 1 since 21/03

He aint doing what he’s paid to do.

You said $250, now 0.21 BTC?

CryptoPunisher04/19/2018

Idk man, all I see is that the nodes are online.

Yeah he just gave me the new total. :/

AJ04/19/2018

He’s screwing all of us

It’s his responsibility to ensure they are working and he’s charged you to sort them

CryptoPunisher04/19/2018