RR Crypto, a French investment fund specializing in cryptocurrencies, has evaporated into the wild with the holdings of its 4,500 members. All the funds invested by savers have indeed disappeared after an alleged “reset” of the portfolio on Binance. Nearly 60 million euros in cryptocurrencies have vanished without any explanation. A collective complaint bringing together the victims could emerge.
Based in Dijon, RR Crypto describes itself as “An association that offers pedagogy and personalized support for your projects concerning crypto-assets with individuals in order to participate in a reliable and sustainable economic alternative in the face of current challenges”.
Concretely, this investment fund offers manage the assets of individuals by investing them for them. RR Crypto also offered investment advice in exchange for 17% of the capital gains realized by its clients. Via the fund, it was possible to invest in Bitcoin, Ethereum, Litecoin or any other cryptocurrency. To attract clients, the fund did not hesitate to promise a monthly profitability of 10%, reports Cryptoast, a media specializing in cryptocurrencies. Since 2013, RR Crypto has been administered by its founder, Vincent Ropiot.
RR Crypto Blames Binance Exchange: “Baseless Allegations”
This June 20, 2021, Vincent Ropiot finally announced disastrous news to investors who have entrusted their money to RR Crypto. “I, the undersigned, Vincent ROPIOT, founding president and leader of the RR Crypto association, have learned during the month of March 2021 that the crypto-asset portfolio opened on the Binance platform, on which all the funds entrusted to management by our customers are kept, has been reset. I regret to inform you that to this day, the funds are no longer present in the portfolio, without access to the latter’s history “ Vincent Ropiot says in an email to the association’s 4,500 clients. We imagine that RR Crypto’s trading account could have been liquidated as a result of too risky an investment.
Everything suggests that Vincent Ropiot seeks to transfer the fault to Binance, one of the leading digital currency exchange platforms. Questioned by BFM TV, Binance nevertheless claims that RR Crypto does not have a business account. “Binance has no process to ‘reset’ registered funds” explains the Hong Kong-based company, noting that “Users who close their Binance account can access history”.
In a statement, Binance claims to reserve the right totake legal action against RR Crypto. “Binance was recently made aware of statements made by representatives of RR Crypto. Although the investigations are still ongoing, based on the information uncovered so far, it is clear that the allegations are unfounded and Binance reserves the right to take legal action against the parties involved ” accuses Binance.
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Aggrieved customers could launch a collective complaint against RR Crypto
The 4,500 victims of RR Crypto could come together as part ofa collective complaint, advance BFM. The Paris prosecutor’s office has also opened an investigation into the Dijon firm to “Organized gang theft, attacks on an automated data processing system and organized gang money laundering”.
Note that RR Crypto has never complied with French law in force. To legally offer the services of the investment fund, Vincent Ropiot should have applied for digital asset service provider (PSAN) status from the Autorité des marchés financiers (AMF). Contrary to his previous statements, the man never filed an application. Before entrusting your savings to an entity, we advise you to carefully check whether it has this essential status.
Contacted by our colleagues from Capital, William O’Rorke, partner at the law firm ORWL, assures us that Vincent Ropiot risks two years of imprisonment and a fine of 30,000 euros for having carried on his activity illegally. That’s not all. He also faces two years imprisonment and a fine of 750,000 euros for the illegal exercise of a collective investment activity. Finally, William O’Rorke believes that Ropiot risks “Five years in prison and a fine of 375,000 euros, or even ten years in prison and a million euros fine in the event of an organized gang commission” if any fraudulent acts are held against RR Crypto.
Source: BFM TV, Cryptoast, Capital