Crypto vertigo: The dizzying story of an Aussie 'swindler' who says he was framed

In the strange world of cryptocurrencies, and particularly the wild western social media investment schemes, things are not always as they seem.

Take the extraordinary story of the Australian man Michael Daher.

Talk to Era and Sydney Morning Herald from an undisclosed location in Perth, Daher confirmed that he was not the mastermind of an alleged cryptocurrency ponzi scheme that swindled $200 million from 7000 investors, including in Australia, in two quick months.

Michael Daher of Metafi Yielders said he had been framed but investors in the group’s cryptocurrency scheme were still looking for his blood.

Yes, there he is in a promotional video posted on YouTube as the self-described chief executive of the Metafi Yielders cryptocurrency-related investment scheme. Yes, that’s him who is listed in the company’s records as a director of an Australian entity formed as part of the scheme. Yes, it was him who rebuked investors for complaining of not being able to withdraw their money when Metafi Yielders suddenly froze accounts on May 17 this year, claiming the move was necessary due to the global rout in the cryptocurrency market.

But Daher, while confirming elements of the story, insisted that he had been made a fallen man.

Daher, who was accompanied by an advisor during our interview, said the scheme was actually run by a man from Nigeria. He said he was recently hired to be the vocalist and social media producer for the scheme.

Daher and his advisers have prepared a full report which they will file with the Australian Federal Police on Friday. Daher provided emails showing he had made police reports in Western Australia and Queensland.

Load

“This will be a police matter,” Daher said.

“After being cleared by the police and— [Australian Securities and Investments Commission] I have a message for people [who were customers of Metafi Yielders].”

“You put your hopes and dreams – even I did the same. I thought it would change my life, yes, it did.”

Another version of the show

Investor Metafi Yielders has a different story. Some investors who wrote to Era and herald claiming Daher was the only person they worked with during the scheme. The investors, writing from the United States, Britain, Australia, Canada and South Africa, believe Daher was responsible for the scheme – a charge he vehemently denies.

The chaos left by the closing of Metafi Yielders is a story for the modern age where investment schemes promoted online and via social media promise huge returns, often on cryptocurrency investments, and carry huge risks.

Just this week the Australian Competition and Consumer Commission (ACCC) warned that Australia’s combined loss on investment fraud was $701 million. “The main driver of this increase is cryptocurrency investment scams.”

The collapse of Metafi Yielders, which owns guns in Hong Kong and Australia, highlights the serious risks for investors participating in schemes that are largely outside Australian law.

Metafi Yielders has an attractive offer for its investors. It promises to pay its clients daily interest of between 1 percent and 3 percent on their cryptocurrency investments at times when the market is at its hottest. The investor initially receives the payment. But the music stopped in mid-May and it wasn’t long after Daher became the center of investor anger.

A screenshot of the Metafi Yielders website taken from WayBackMachine which tracks website changes including sites that have been closed.

Since June, more than 20 Metafi Yielders customers have written to Era and herald to submit their complaints. All customers allege that the money they deposited in the trading scheme – each from thousands to tens of thousands – was lost.

“He seemed very sincere,” said Sue, an Australia-based investor who asked not to have his surname published. Sue, who has been investing in cryptocurrencies for some time, said she was initially happy with the investment scheme, receiving a huge return on her initial $US3000 ($4400) investment in Metafi. “Everyone is starting to get paid. And this is very good.” But the investment would then be lost and the company would blame the cryptocurrency’s price rout.

Sue is surprised to be told that Daher is now saying she was a victim of the scheme as well. “We didn’t see anyone other than him. He comes in the video. He said ‘I’m not going anywhere guys, I’m not like other companies’. Then he disappeared.”

‘Chaos and chaos’

In a recent video to investors, posted on YouTube around May 25 but since being removed, Daher describes himself as the group’s CEO and uses the term “we” when defending the company and berating investors. The video was posted about a week after investors were blocked from withdrawing their money from the platform and after several investors allegedly made death threats.

“There has been turmoil and chaos at Metafi Yielders since the market crash. You guys seem to have turned me on for this. I’m not creating a market crash. You guys are educated enough to read the terms and conditions set out to invest, put money into the platform, use the software,” Daher said in a video posted online by a YouTube investment influencer.

“Since Monday two weeks ago, all I’ve been getting are death threats, people calling my house, finding my house number, passing it on to small private groups and this will not be tolerated in this group. If you have something to say or you need to do something, please go through legal channels.” Daher went on to say that they are working on a payout plan for investors.

Daher said when he made the video he thought trading had been paused rather than stopped altogether.

While most of Metafi Yielders’ life is online, there are traces of it in the “real” world.

Load

Daher, who has a beard and likable sensibility, appeared to register Australian company Metafiyielders Pty Ltd in March this year. Company records list the sole director as Michael Daher, born in 1984 in Blacktown, and still living in the suburbs. Two months later, Blacktown’s Michael Daher was replaced as sole director by Michael Daher, born 1979 in Lebanon and living in Perth.

Daher said the man who actually ran the scheme founded the company and found his address, date of birth and location of birth in company registration documents. Daher said he changed the director’s details on May 9 when he noticed the discrepancy.

Another Australian company that considers Daher a director has a different spelling than his first name, listing him as Michel Daher. She said Era and herald he recently resolved a clerical error which meant Michel’s name appeared on his passport and birth certificate, while Michael’s name appeared on his driver’s license.

He said Australian company Metafi Yielders never earned any income. ASIC records show he has applied to unregister the company. He said the scheme’s now-defunct website was run by Hong Kong firm Metafi Yielders Limited, which he said mislisted him as a director.

Mysterious man

Daher emailed Era and herald last month after knowing investors contacted this masthead. In the email he provided a legal statement – ​​witnessed by a dentist in the Brisbane suburb of Bulimba – in which he denied responsibility for the scheme. The document was signed under the name Michel Daher.

Load

In the document Daher claims that in March he was introduced to a man who asked him to be the public face of Metafi Yielders.

“We agreed on a weekly rate of $US2000 to be paid in cryptocurrency plus a 10 percent commission once the project is launched. My duties in this role include producing instructional videos for new platforms and speaking with potential global partners via Zoom calls.”

Daher named the man he believes was behind the scheme in his statutory declaration, but also said he believed it was a name used by three different men. He categorically denies involvement in the closure of the site and the alleged loss of investor funds.

“I have been accused of being the person responsible for stopping deposits and withdrawals. I have been accused of stealing people’s money and being a scammer running an international Ponzi scheme.”

He claimed in his official statement that his identity had been stolen and that his promotional video was uploaded to the internet after he gave it for approval to the person who asked him to be the social media manager and public face of the scheme.

Daher’s legal declaration also confirms ASIC made contact on June 10 to express its concerns about the scheme and ask the group to stop using the ASIC logo.

The letter from ASIC, which has been published online, warns: “It is a violation of Australian law to make a false or misleading representation in trade or commerce with respect to these goods and related services.”

Although no longer involved in the group, Daher admitted that he immediately complied with ASIC’s request. He explained he did that by relaying a message to the person running the operation.

Daher’s version of events is cold comfort for investors like Sue. “Once they’re up and running, ASIC can’t do anything about it, and they won’t get your money back after all.”

The Business Briefing Bulletin delivers key stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.

#Crypto #vertigo #dizzying #story #Aussie #swindler #framed