Con artists have been at work since the dawn of economics. This was most prevalent during the age of sails when a scammer would promise riches from the East Indies or the New World. After raising money for the “expedition”, he would simply vanish. The digital age has a varient of these pests. Today, the fraudulent practice is done by unethical cryptocurrency promoters who vanish with the investors’ money after an ICO. This is what seems to have happened with Oyster.

The Oyster projects failure seems to have raised more than a few red flags that point to it being a similar exit scam. While the community at large is still to come to a consensus, legal action appears to be a more than likely outcome. There has been a push such as a dedicated forum, where duped investors are encouraged to lodge complaints and submit testimonials.

There are those who view this as a simple pump-and-dump rather than a well thought out scam. However, this seems like semantics when one considers the end result, investors losing out due to actions of the developers. It has been widely publicised that Oyster was exploited by the project's founder and architect, Bruno Block. He inflated millions of tokens and sold them at Kucoin, after which they were taken off.

Due to the decentralized, anonymous and regulation-free nature of how the virtual currency ecosystem operates, tackling scammers is an onerous and difficult task. There is still hardly any legal framework for Cryptocurrencies, in almost any county in the world, to operate in, thus investors have a rather limited number of options. Though this is frustrating, it doesn't mean there is no recourse available.

It seems that the people who invested in Oyster have banded together and are in the process of seeking legal representation for a class action lawsuit. As mentioned, a forum, OysterUpdate is online to get as many people together as possible. This, of course, is a small step, yet a step in the right direction. At the moment the actual chances of success for this effort is unclear, but this sort of decisive action should be applauded.

The first order of business will be to gathering evidence from a set of identified plaintiffs. This means there needs to be a working course of action to allow victims to identify themselves, whilst still being able to remain anonymous. It seems the investigation would primarily focus on Bruno who is also the public face of Oyster.

It should be noted that many who invested in Oyster, might not have done a thorough investigation. However, this should not afford an excuse to the development team at Oyster to get away with their actions. The netizens at Reddit have been most active in providing support to ensure this.

The actual effectiveness will only be evident in time. However, ensuring scammers are brought to justice is a prerequisite if the industry to be more mainstream. In the past, this has been a be a major challenge. It is heartening to see that there is a lot of positivity in the community about pressing charges,especially with so many people coming together.

Oyster (PRL) scam funds on the move – sent to Bitfinex from CryptoCurrency

OysterUpdate.com Will Pursue Legal Representation For Investigation/Class Action Re:Oyster Protocol from OysterUpdate

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