The cryptocurrency Ponzi scheme Quinex collapsed around November 20th, leaving thousands of investors unable to access their funds. Operators then launched a second scam, Coinage Bits, to target the same victims again under the guise of recovery.
Quinex operators claimed a "firewall attack" forced them to shut down transactions and lock servers. They stated funds were "safely secured and encrypted." This explanation was false. Quinex was a multilevel marketing crypto Ponzi operating under a fictional CEO, Sebastian Abrego. The company had no legitimate existence.
The subsequent scam, Coinage Bits, operates from the domain coinage-bits.ltd, registered privately on July 10th, 2025. Quinex deleted its YouTube channel and marketing materials to obscure the connection. Coinage Bits solicits new investors with an 8% referral commission. The pitch encourages users to sign up with their old Quinex credentials to withdraw funds.
Existing Quinex usernames and passwords functioning on Coinage Bits indicates the same criminals are behind both operations. Alternatively, they sold victim data to other scammers. Either way, anyone logging into Coinage Bits risks losing any remaining funds.
Web traffic data from SimilarWeb shows 94% of Quinex investors were from the United States, with the remaining 6% from India. The total number of victims and stolen amounts remain undisclosed. Quinex operators provided no accounting of funds or any legitimate recovery process.
This tactic represents a common strategy for modern Ponzi schemes. They collapse due to unsustainable mathematics, then repurpose victim lists for new scams. Operators prey on investor desperation and trauma, knowing victims are more inclined to chase losses than accept them. A fabricated recovery story, couched in technical jargon, can convince some to surrender their remaining assets.
Quinex investors lost their money upon initial signup. Anyone following the Coinage Bits instructions will forfeit any money they hoped to recover. The U.S. Securities and Exchange Commission has filed numerous actions against cryptocurrency fraud operators, citing violations of federal securities laws.