LSSC, TXEX and the fatal promise of easy riches

By Éloge Willy Kaneza and Rachel Ndjondjo

According to the FBI, cyber criminals scammed people living in the U.S. of over $6.5 billion through investment fraud in 2024. 

Two recent investment fraud schemes succeeded on a large scale in Maine, as well as nationally. The first was a pyramid scheme out of the fake investment company Lightning Shared Scooter Co., known as LSSC. The second scam was from a fake investment platform called TXEX, which emerged after LSSC had collapsed. Some victims were scammed just once; others fell victim to both scams. 

In Maine, some victims lost as much as $30,000. One group of investors worked to raise large sums, cobbling together over $50,000 — which they lost.

According to testimonies received by Amjambo Africa, the collapse of the LSSC and TXEX investment schemes have left families that were already struggling to make ends meet in great financial and emotional distress. 

Credibility and integrity are lost

“It was the first time I fell into such a trap,” said Barahinduka, a victim in Maine. “A friend recruited me, and another friend deposited the amount for me. People were so excited that they were willing to do anything to get their relatives and acquaintances into the deal.”

Tambwe, a victim who works in social services, described how he ended up encouraging friends to invest in LSSC.

“Everything seemed authentic: app, website, active customer service. … After investing and seeing a first return, I started talking to others. I sincerely believed I was helping people seize a good opportunity.”

All kinds of people in the U.S. fell victim to the fraud, from religious leaders, mayors, and police officers to people living on fixed incomes who were struggling to make ends meet. And these victims then encouraged friends and colleagues to invest, believing they were helping those they cared about. At first they didn’t realize they were spreading a scam. But after a while, some people noted signs that something was wrong. 

Tambwe said, “When some [friends] reported difficulties withdrawing their money, I realized something was wrong. I felt shame and regret, especially for those who trusted me. Even though I recovered my money, I felt responsible for their loss. In this kind of scam, no one wins. You end up consumed by remorse, even if you don’t show it. Credibility and integrity are lost, and family damage is impossible to repair.”

Considerable losses

Aline K., a victim in Maine, lost money she could ill afford to lose.

“I lost everything,” she said. “ I invested nearly $2,000, thinking it was a modern way to save. Everything seemed serious, with receipts and contracts. But when the platform closed, everything disappeared. My entire family was affected by this loss. This money was meant to improve our daily life. Today, I feel guilty toward my children. I wanted to give them a better life, but I lost everything.”

Ben N., a victim of both LSSC and TXEX, noted: “At first, everything seemed to work well. I received my daily gains, which gave me hope. But a few weeks later, no more withdrawals, no more access to the app. That’s when I realized I had been scammed a second time.”

Barahinduka reflected that he’d learned something from his losses and wouldn’t be tricked again. “Looking back, I blame myself for being a bit stupid,” he said. “I had resisted this kind of project since 2009, until the day my two friends appeared very convincing. I don’t think I’ll ever get caught again.”

Looking to the future

In the U.S., the Better Business Bureau has recorded hundreds of complaints and highlighted signs of cyber-based investment fraud to look out for. These include frequent domain changes, unrealistic promises, and lack of an identifiable legal presence. The Minnesota attorney general, as well as local police there, issued a warning to the public about the risks in July. 

In Canada, the British Columbia Securities Commission, the Autorité des marchés financiers of Québec, and the Financial and Consumer Services Commission of New Brunswick, have warned the public to protect their money.

And vigilance definitely does appear to be warranted – authorities suspect that efforts are being made to relaunch the fraudulent investment scheme under a new name. Two Maine victims are concerned they are being targeted for the new scheme: “The scammers continue to contact us even today. They say the money has been blocked, but that LSSC should [be able to] operate again in March 2027.”