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:
I’ll be holding the coins on my Windows wallet. I’ll message you for the coins in 4 hours.
Sure. Don’t have any coins at the moment. Am finding out more info..
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..
They’re brand new
Go on masternodes.online and join their discord
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?
I’ll send you my address in a hour
It should take a couple days for MN earnings
How many coins are you sending me
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
Ok. I need the tokens when I get home
I will hunt to will the reat
February 22, 2018
Read your msg last night then lost internet connection.
Send me your wallet address..
They’re on the discord group
Look at the section called Masternode pool info
Now unable to send from wallet. In touch with devs
What’s the problem?
Did you take a .001 fee out before sending?
Keep getting redirected to passphrase, even though wallet is showing as unlocked in bottom right hand corner
Nice, idk what your problem is. Haven’t had any problems yet
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..
Devs are investigating..
will come back to you when I know more..
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
How many coins did you send?
Just to confirm.
Someone else just sent 1000
20.05 as a test transaction
1400 more to come
JUst sent the other 1400..TX ID:e77d3e0f1b46a5c6afceb283139f317a0c8065935f4c8d277589e9d77fa73133-000
I’ll add you to list
Now we only need 1400 more coins to start the node
What’s your recieving address? And would you like to recieve in BTC or MIE?
Just need it on record
February 23, 2018
MWrnJ7y336WEQJyCFvstsXFapJLmxvPCD6- MIE Pleaese.
March 4, 2018
I need to pay you in BTC
Please give me your BTC payment address
Waiting on you
What happened to our agreement to be paid in MIE?
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
I can see that.
Ok. So we good?
So your holding MIE and using your own BTC?
Selling to developers of MIE and private buyers on their discord
Interesting. Good idea.
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
An idea to provide transactional evidence for the first few MN payouts, along with the exchange.
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?
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
Ah, ok. First time using it. That’s way better with the single address
March 9, 2018
How long is the 3400% return on DIXI for?
is the rate inflationary or deflationary afterwards?
It will slow down eventually
March 11, 2018
Yes, leave the payout for the moment, given the USD price drop with MIE
March 12, 2018
I will take 0.2 BTC on XAP masternode
Ok. Send it
Will you buy the XAP coins or already have them?
And what date will MN be set-up ?
Also, weekly payouts and exit terms?
I buy coins from devs
The next couple days
payouts in BTC, and weekly?
cool. Am off to sleep as it’s v late here… will send the 0.2 BTC in the morning!
I can buy the node today if you pay now lol
It’s 3PM here
haha, u have a sense of humour
Will msg the TX ID when done
What Pool am i in for XAP MN?
as in MN1?
If you pay now
Sent from Ledger.
I believe this is TX ID: 3BAi7wnwCPjeKU6AR1DZ6i2Txim5ju8r72
Let’s try again! TX ID: 6b5a2f7c98869226386d00cd0ea1814be0b419f6962e8a51f724bbf3473bc39e
Ok I got it haha
What’s ur address
March 13, 2018
Label it XAP
I want a BTC addresss
I have your old address I’m gud
March 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?
Plan is for market to be stable eventually and exit slowly
April 1, 2018
What time is the payout today chief?
And what timezone are you in?
April 8, 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
Weird ok nbd
Don’t understand dude. nbd?
I’ll look into it.
April 9, 2018
To clarify, no XAP MN payments have been made yet, and the 1st one will be Sunday 15th April?
Dig through all my notes
13k coins ready to sell and some BTC ready from past sells
Been scrolling through trying to make sense of it all
Like the idea re MN viewing…I believe in transparency
I do too
Just a lot of witk
April 18, 2018
I think some transparency is required:
What is that?
25,000 XAP sent?
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
Payouts are nowwhere near in line with rewards.
Some fvcker is having our eyes out. Period.
payout should of been 0.608 TOTAL, based on rewards from MN 2-5
MN 1-someone has to explain.
April 19, 2018
Which masternode isn’t making rewards?
You said it only sent and received coins?
I’ll tell my developer to fix whatever is wrong with MN1
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
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
Yeah I just had dev redo collaterals and he said they should all work now
He has been thinking MN1 was working
As a DEV he should know to check.
And the BTC reward v payout difference?
He puts them online, and usually checks. He thought it was online apparently.
This is a lesson for someone within the MN groups to check all MN’s once/24 hrs
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.
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?
Idk man, all I see is that the nodes are online.
Yeah he just gave me the new total. :/
He’s screwing all of us
It’s his responsibility to ensure they are working and he’s charged you to sort them