Auscoin Scam Busted; Sam Karagiozis Arrested on Drug Trafficking Charges

Already suspected of a potential scam, the Auscoin project was finally busted after the arrest of founder Sam Karagiozis.

Sam Karagiozis, a flamboyant figure in the Australian crypto space, was arrested last week on charges of drug trafficking, reported local media. Karagiozis, who founded Auscoin as a continuation of his foray into Bitcoin, built his empire on the back of being an early Bitcoin adopter, hitting gold with the price bonanza in 2017 and 2018.

The web page has been closed, and taken over by an extreme critic of the project. The page opens with a message of a potential investigation into the activity of Karagiozis.

“This website will soon outline the many reasons why conmen Sam Karagiozis, Michael Sloggett, Andrew De Angelis, Sean Harris, James Garner and others involved in the AusCoin con will find themselves behind bars,” it said.

Auscoin was exposed in a 60 minutes investigation in early 2018, with more signs of being a scam. The project actually managed to perform an ICO and got listed on exchanges in September 2018. But trading AUSC was suspended on March 12, when the price tanked to $0.0008.

Auscoin was an example of a pure scam, which attracted a limited number of backers. The project managed to install around 30 ATMs around Australia, but failed to achieve the promised 1,200 machines. Just a year ago, Karagiozis was on a tour to popularize Auscoin in a series of locations:

In the past months, skeptics noted that Auscoin was taking much longer to install the ATMs, and that the only evidence were pictures. The company lacked the inventory to install the promised 13 ATMs each week and essentially failed on its promise.

The arrest of “Kazz” Karagiozis comes just days after the leader of another scam, OneCoin, was arrested in Los Angeles. Bulgarian national Konstantin Ignatov was held in a prison in Los Angeles, and along with the OneCoin founder Ruzha Ignatova, charged with fraud and conspiring to fraud.

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