Timeline of the CoinSignals Scam
TL /DR: This is a story of Inspect Element, Telegram paid groups, disgrace, friendship with Crypto Influencers, a mentorship class that turned sour, Long Bitcoin at 6,000, a squiggly line, all-in YOLO Long at 4,950, loses $8 million, see-no-evil speak-no-evil, goes on the run, clout-chasing and Gaslighting. The smoking out.
24 December 2018 News. There was radio silence from CoinSignals from 23 November. This article was published on 22 December. He got smoked out on 23 December:
The basic scam was CoinSignals raised a large fund for trading at Bitmex and then lost it or stole it. He probably lost a lot and has stolen the rest. This was his penultimate tweet on 20 November 2018. He draws a squiggly line showing Bitcoin rising to 16,000. Bitcoin immediately drops like a stone from 4,957 to 3,200. Jeremy packs a bag and goes on the run.
He began by establishing a reputation as a Bitmex trader with a combination of early success, good charts [js7745 on Tradingview], and use of Inspect Element to falsify and exaggerate his Profits on Bitmex. How did he attract the rumoured $8 millon? He was active on Telegram and Discord and attracted sizeable payments to his Bitmex fund when he got together with the Blockchain Bulls paid group. There was the Haven pump & dump scheme in April — reported on by Yahoo Finance which doxes CoinSignals — but this seems barely to have set his efforts back at all. Then he became embedded and friendly with high-profile Bitmex traders on Twitter like CryptoDonAlt, TraderMayne, AureliusBTC (formerly aka Ossettia), CryptoCred, and this built up his reputation and ability to attract funds.
It became clear to insiders friendly with him that CS was going off the rails in mid-October when his new mentorship class failed and he was not processing withdrawals from his fund. They pressurised him to repay fees paid for a mentorship class. It seems the total class fees paid was about 4 BTC . I am in contact with a Discord group working collectively to get their funds back. (They have read and approved this piece in draft version.) According to them the influential friends of CoinSignals did nothing to pressure him to return the money in the fund to its owners. (Original vaue > 1,000 BTC.)
I am claiming a see-no-evil speak-no-evil culture prevails. Rumours of his fund going broke only surfaced on Twitter on 11 December, two months later. The high-profile traders who knew or suspected what was going on shut their mouths. The people who lost that $8 million (?) were reluctant to go public with it because they did not want to give CS an excuse to run away with all remaining funds.
I have tried to collect what is known about the possible loss or embezzlement by CoinSignals. There is no hard evidence of how much was lost. This is an address for his Bitmex fund that received 285 BTC with current balance of 0 BTC.
CoinSignals stated on 19 December that ‘up until recently AUM was over 1100 btc’.
The only people who really know if over 1,000 BTC was lost/ liquidated or stolen are the speculators and the perp. The thing is the speculators are staying quiet as they continue to hope to a quiet settlement with CS and do not want to make him run. They know his name.
January 2018 CoinSignals starts a Bitmex trading fund on Discord. It is believed he made very good returns for ‘investors’ in the first few months.
Spring 2018 CoinSignals joins Blockchain Bulls. This is a Telegram / Discord paid group run by @JohnShillinger a.k.a Jareth and @DirSchmidt. It operates various funds including an ICO pool, meaning that members of the paid group contribute to the pool and the administrators organise deals with ICOs to buy at discounted prices before the public sale.
CoinSignals posts TA charts and screenshots of tremendous profits he makes at Bitmex. The directors of Blockchain Bulls promote CS’s Bitmex fund to the members. They join based on the screenshotted evidence of the profits he is making. Those mught have been genuine profits — they probably were in early days — or fake using Inspect Element.
CS and Jareth are switching BTC to & fro between the Bitmex fund and the Haven fund:
May 2018 CoinSignals organised an ICO pool in Blockchain Bulls to invest in NEXO pre-sale in February. Nexo tokens are distributed in May and it pumps 7x in eth value. But the Blockchain Bulls pool members did not receive their NEXO. CS disappears for a month. Theory is CS sold BB pool’s tokens on the pump when he personally received in May, hoping to rebuy the dump and distribute those to the pool. BB pool got their (devalued) NEXO in mid-June.
July 2018 Various reports on the performance of the fund
From my DMs: “I remember when he opened this fund to bb group. He said the admins were in the fund for a while already and made them 10x or something outrageous. That was the hook. He kept showing huge profits… But when i was in the fund it was like 3% per week, some wks none.”
6 August 2018
From a Blockchain Bulls member: He [CS] stole our evermarkets ico pool money on the 06.08.18 so I suspect he was already underwater by then
August 2018 CoinSignals releases coinsignals.trade
30 August 2018 CoinSignals is handy with Inspect Element; he claimed he got a $1 million Short filled on a Bitmex wick.
In fact nothing was traded at that gap-up:
Perhaps it was a joke. It is unimportant. The point is he knows how to use Inspect Element, and uses it.
A DM conversation I had on 30 August with a prominent Bitmex trader who reckons CS had 1k+ BTC in his wallet ($7 million):
30 August 2018
Early September 2018: CS started to block withdrawals from his Bitmex fund.
September 2018 @CryptoCartelCC Bitmex trading competition. CS heads the leaderboard in first week, trading 1 BTC up to a balance of 4.6 BTC and a 360% gain. At the conclusion of competition at 30 September he is not in Top 10 meaning his gain < 34%, or he made a loss. If he had deployed tight risk management from 5 September he would have been in third position at conclusion or thereabouts. This is probably the story of his Bitmex fund written small.
September 2018 Coinsignals is fully rehabilitated on Crypto Twitter and working hard at the FF game. And being FFd by influencers. Do a search on Twitter for #FF @Coin_signals
26 September 2018 CS launches paid mentorship class
27 September 2018 CryptoCred shills CS paid mentorship class (not Bitmex fund) to his Telegram group
Mid-October The CS Mentorship class is dead, CS has more or less disappeared, the mood is sour and people want their fees back. CS reluctantly refunded mentorship fees after co-ordinated pressure on him by Cred and his group. Cred has stated he became aware of withdrawal issues from the CS fund at this time in mid-October. [So why did he keep this information to himself?]
I think it is untrue to say these people were unaware of CS’s Bitmex fund:
For example AureliusBTC was formerly known as Ossettia and was closely involved with CS in the Haven incident. He then re-branded as @AureliusBTC. It is absurd to suggest he was unaware of CS’s fund and its problems.
CS himself admitted his Bitmex fund going underwater ‘for the past two months’, according to a statement he made on 19 December.
‘I have spent the last two months trying to hide my drawdowns with lies and deceit.’
Mid-November 2018 Bitcoin crashes down through its long-term $6,000 Support and it is believed CS was Long. Cred:
20 November 2018 CoinSignals’ last Tweet. He draws a wavy optimistic line showing Bitcoin rising to 16,000. Bitcoin drops like a stone to 3,200.
11 December 2018 News of the lost Bitmex fund surfaces on Crypto Twitter. Plenty of people — a tight circle of high-profile traders — seem to have been aware of this since mid-October but stayed quiet about it.
Why the long delay?
This scam caught my attention when CoinSignals was outed on Twitter on 11 December. I tweeted a bit about it and met with extraordinary hostility. I believe this is a form of gaslighting, making me wonder if I was mad to focus on this matter. I have not lost money to CoinSignals. The people who lost money were greedy gamblers not widows and orphans. So why should I bother reporting on it in the face of such a toxic response? I am accused of clout chasing. Well, I am sceptical that clout chasing is a genuine model for growing an account. It did not work for CryptoMedication did it? (He was also accused of that.) I decided to publish anyway because I had a feeling of nausea about this CoinSignals story and the pervasive silence that surrounded it.
“Journalism is printing what someone else does not want printed: everything else is public relations.”
This is example of what I mean:
That is it. Draw your own conclusions.