Posts in category

Fraud


Ukrainian authorities have arrested four individuals suspected of running fake cryptocurrency exchanges, the nation’s federal police force announced Saturday. The National Police of Ukraine claimed in a press release that the suspects were arrested for operating as many as six fraudulent cryptocurrency exchange platforms. Cybercrime officials are still looking at the sites to establish how …

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Belgium’s government is backing a website that seeks to warn cryptocurrency investors about the signs of potential fraud. The new site, entitled “Too Good to Be True,” is run in part by the Belgian Federal Public Service Economy and the Financial Services and Markets Authority. Saying crypto assets “are the hype of the year,” the site warns …

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The Texas State Securities Board (TSSB) has issued cease-and-desist orders to two bitcoin investment schemes that it alleges are selling unregistered securities and making fraudulent claims to the state’s residents According to one order lodged on Tuesday, the securities regulator takes aim at a company called Forex EA & Bitcoin Investment LLC and two individuals associated …

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British business tycoon Richard Branson spoke out Thursday about the rash of bitcoin scam stories that have used his name to lure victims. “I have written several times warning people about the growing problem of fake stories online linking me to get-rich-quick schemes, fake pages, misleading ads, false endorsements and fake binary trading schemes,” Branson …

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Two men from South Korea have been sentenced for creating a bitcoin pyramid scheme that swindled some 20 billion Korean won ($20 million) from investors. On April 19, a judge from Seoul’s Incheon District Court issued fines of $15 million and $8 million, respectively, to the two fraudsters, according to local news source Yonhap. The report said …

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Police in China’s northwestern city of Xi’An have arrested the founders of a claimed nationwide cryptocurrency pyramid scheme that allegedly amassed 86 million yuan ($13 million) from over 13,000 people. According to a report from local media source Huashang News, Wednesday, the scheme launched in March 28 this year after months in preparation by a primary suspect …

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Federal prosecutors say a New York resident misled investors about a worthless cryptocurrency as part of a wider investment fraud scheme. The U.S. Attorney’s Office for the Eastern District of New York said Monday that Blake Kantor, also known as Bill Gordon, was being charged with conspiracy to commit wire fraud, making false statements and …

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A Philippines lawmaker is seeking to speed up the passage of legislation that would increase the penalties for crimes involving cryptocurrencies. Leila M. de Lima, a Philippines’ opposition senator, urged her colleagues in the legislative house on Monday to allow “swift passage” of bills she has previously introduced proposing to raise penalties for crypto crimes to …

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The Federal Bureau of Investigation (FBI) said Wednesday that consumers should watch out for would-be scammers posing as support staffers for cryptocurrency exchanges. The agency’s Internet Crime Complaint Center (IC3) sounded the alarm about tech support scams in a recent notice, stating that it constitutes “a problematic and widespread scam.” In 2017, the center said, …

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The Commodity Futures Trading Commission is having trouble serving a court summons to a binary options trader charged in January with stealing more than $1 million in bitcoin. The U.S. commodities regulator claimed in a court filing Tuesday that Dillon Michael Dean is avoiding their attempts to present him with the summons. The CFTC is …

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Marc Hochstein is the managing editor of CoinDesk.  The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday exclusively to our subscribers. “Innovators who seek to revolutionize and disrupt an industry must tell investors the truth about what their technology can do today, not just what they hope it might do someday.” That …

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Would-be investors in Telegram’s multibillion-dollar initial coin offering (ICO) have quickly become a favorite  target for scammers. CoinDesk has identified as many as nine more websites claiming to sell the Telegram token after previously reporting on another fake website, which claimed to be run by the “Telegram Foundation.” Most of the sites claim that the token …

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The US Security Exchange Commission (SEC) and Department of Justice (DOJ) have officially leveled charges against the founder of the now non-operational Bitcoin-dominated exchange BitFunder, Jon E. Montroll, Wednesday Feb. 21. The SEC released a press statement Wednesday stating that they have charged Montroll, also known as Ukyo, with operating BitFunder as an unregistered securities …

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Months after China’s clampdown on initial coin offerings (ICOs), professional ICO white paper copywriters are still offering services, including fabricating information, reports suggest. The People’s Bank of China notably banned domestic initial coin offerings in September 2017, yet searches using key words such as “ICO,” “blockchain” and “whitepaper” result in dozens of online stores on …

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Yet another lawsuit seeking class-action status has been filed in Florida against BitConnect, constituting the third legal action of its kind to be initiated in the state and the fifth overall in the U.S. Florida residents Andrew Kline, Dusty Showers and Lena Hunt, along with Rhode Island resident Charles Mabra, filed the lawsuit in the U.S. …

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Police have apprehended a Russian citizen believed to be the number two in an international cybercrime organization, the Bangkok Post reported. Sergey Sergeyevich Medvedev was arrested in Bangkok last Friday, Feb. 2, by the Thai Crime Suppression Division (CSD) on a request from the US Federal Bureau of Investigation. A laptop and documents were taken …

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With the success of Blockchain technologies in preventing the double-spend issue in cryptocurrency, a new technology company is applying this approach to stem the incredible rise in digital advertising fraud. The rise and rise of fake views Last year saw digital advertising secure its dominance of the global marketing industry, overtaking worldwide TV sales for …

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South Korean officials believe that North Korean hackers stole tens of millions of dollars’ worth in cryptocurrencies last year, according to local reports. Kyodo News reports that the National Intelligence Service (NIS), briefing the country’s lawmakers on the cyber attacks, said that phishing scams and other methods had yielded tens of billions of won in …

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Texas’ securities agency has issued another cryptocurrency-focused emergency cease-and-desist order, this time against a lending scheme called DavorCoin. In its latest filing, signed Feb. 2, the Texas State Securities Board (TSSB) alleges DavorCoin has been issuing unregistered securities with fraudulent and misleading information to lure investors. The filing arrives just days after the TSSB gave …

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A number of Twitter accounts masquerading as notable cryptocurrency developers and startups have been soliciting funds with promises of major gains. With the rise in value and popularity of cryptos, such scam accounts have been on the rise – asking for small donations of various cryptocurrencies on the social media platform. In exchange, these scams …

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