Bitalium stops withdrawals - pyramid falls?
Earlier this week Bitalium finished paying out bitcoins. The project suspected of being a financial pyramid was motivated by a security breach. In reality, however, there was most likely an exit fraud, as reported by BehindMLM.
Bitalium offered investment packages and ran an extensive multi-level marketing program. This, combined with an unknown owner and operations center, indicated that the project could be a financial pyramid. Shortly after the first reports indicating potential fraud, Bitalium started to broadcast BLM tokens. Built in the ERC-20 shitcoin standard, they were of no value and became another warning signal.
Earlier this week the Bitalium payout system collapsed. The project gave an enigmatic message about a "security incident on one of the servers", which forced it to audit. Thus, bitcoin withdrawals were interrupted and clients remained with worthless BLMs.
Bitalium did not give any time frame for its security audit. Although the "company director" - Samuel Walch, still running youtube seminars to promote the project, there are many indications that the project will soon disappear. The only way to realize the profits for the clients is to use BLM tokens. In our opinion, the chance to return to paying out bitcoins is very small.