ProCap Newsletter No. 14

How the ProCap Scam Started, How It Unfolded, and Where We Are Today 

Another “Safe Investment” Turns into a Financial Disaster 

ProCap began advertising itself as a legitimate investment platform in late 2022 and early 2023, initially in the Philippines and later across Southeast Asia. The platform offered predictive games such as baccarat and roulette, with promises of monthly returns of up to 30%. Investment packages ranged from 2,470 to as much as 74,100 USDT. With an aggressive promotional campaign and a convincing visual identity, thousands of people across Asia and beyond believed in this “innovative opportunity.” 

How Did the Scam Work? 

Behind the colorful ads and “guaranteed profits” was a classic pyramid scheme. Money from new investors was used to pay earlier participants, maintaining the illusion of a legitimate business. However, once the flow of new investments began to slow, payouts became irregular and were eventually halted altogether. 

As an excuse for the blocked withdrawals, ProCap introduced a “mandatory KYC verification” and redirected users to a new platform—Luminex. There, they were met with the same promises and the same inability to recover their funds. Shortly afterward, the platform disappeared entirely, taking investors’ money with it. 

What Happened Next? 

Soon after, regulatory authorities from the Philippines and Hong Kong—PAGCOR and SFC—issued public warnings confirming that the scheme was fraudulent and banned the company’s operations. International investigations followed, and key suspects, including the company’s founder and CEO James Te, were arrested in China on suspicion of fraud and money laundering. 

These arrests marked a major step forward, but they do not guarantee a quick recovery of funds. The total damage is estimated in the millions, and many investors were left without their savings. 

Where Are We Today and What Can Investors Do? 

Investigations are still ongoing in multiple countries, and criminal proceedings have begun. The only realistic chance of recovering at least part of the funds is active participation in the legal process—by registering as an injured party and being represented by legal counsel. The court may order the confiscation of illegally obtained assets and their distribution to victims, but this is a lengthy and legally complex process. 

If you invested in ProCap and have not recovered your funds, now is the time to protect your rights. It is essential to gather all documentation related to your payments and register as a victim. We are closely following the case across all relevant jurisdictions and will continue to keep you informed of further developments and opportunities for compensation. 

Your DefendMe Team