Luka Burazer, the owner of the Rijeka cryptocurrency trading company BitLucky, allegedly caused damage to around 800 people for at least 70 million euros, according to Croatian media. Experts estimate that it is the biggest crypto scam in Croatia.
He lured investors with promises of high returns, but a few days ago he informed them of the company’s poor performance.
Last Friday, according to the Croatian newspaper Jutarnji list, Burazer sent an email to all investors who invested with him. In it he wrote that the state of the company “due to a series of bad deals and decisions” led to a crisis situation and that he will have more information in the coming days.
He did not answer phone calls and emails from the media after this announcement, and he deleted all profiles on social networks. At the moment, no one knows where he is, and the case is also being investigated by the Croatian police.
According to experts, the business model of the company, which Burazer founded in 2018, was simple. Customers gave Burazer money, and he invested it further in cryptocurrencies.
The smallest investment was around 2,000 euros, while some invested as much as 100,000 euros, according to Jutarnje List. He promised investors five to 25 percent returns, and took a 20 to 40 percent commission.
During the last year, when business was getting worse, he encouraged customers to keep their money in BitLucky as long as possible and not to request withdrawals because “now is the right time to invest”.
Ante Žigman from the Croatian Financial Services Supervisory Agency (Hanfa) assessed for the Croatian National Television on Monday that BitLucky’s business was an illegal business.
He explained that Hanfa maintains a register of companies dealing with transactions and virtual assets in Croatia. He pointed out that BitLucky was not registered for virtual wallet activities, which made it impossible for Hanfa to verify exactly what it was doing. When asked whether the investors will get their money back, Žigman replied that it is difficult to estimate for now.