Fraud

Alleged BTC-E Founder Still Not Extradited Despite $4bln Laundering Charges

Greece will not yet extradite Alexander Vinnik, a Russian national accused of laundering billions of dollars through the BTC-E exchange. Officially to be sent to France, a letter obtained by RIA Novosti appears to show that the U.S. will be the final destination. Greek authorities have put a hold on the process due to an...
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Former Bitmain Chip Maker in Police Custody for Alleged Embezzlement

Former Bitmain Technologies chip maker and founder of Bitmain rival MicroBT, Yang Zuoxing, has been reportedly arrested by the Shenzhen police. Yang’s arrest comes amid the ongoing battle between MicroBot and Bitmain, along with the latter’s leadership crisis. On the other hand, another major bitcoin chip manufacturer, Canaan is also not having the best of...
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Investigator Claims HitBTC Is The ‘Largest Scale Fraudulent Entity’

The dominant terrorist organization ISIS starts using a new blockchain-based messaging app to communicate, after its ban from the major messaging app Telegram. The blockchain technology will be used by the app to anonymously spread videos and propaganda to thousands of people worldwide.As a Vice report from December 13 in the blockchain news shows, experts...
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Ugandan Crypto Ponzi Scheme Founder Arrested After Pocketing $2 Million

Cryptocurrency scams and Ponzi Schemes seem more prolific in Asia and Africa One Ugandan scammer by the name of Samson Lwanga was recently arrested.  In Africa, virtually everyone wants to make extra money as quickly as possible. Another Ugandan Ponzi Scheme Shuts Down It is for this reason that scams and Ponzi Schemes are so...
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HitBTC Is “Longest-Running” Fraud, Investigator Claims

Richard Sanders, a lead investigator at CipherBlade, claims that HitBTC is the “longest-running and potentially largest scale criminally fraudulent entity” in the crypto space. HitBTC Might Be Insolvent, Sanders Says While HitBTC markets itself as one of the leading crypto exchanges out there, Sanders alleges that the firm is insolvent. In a recent Medium post,...
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Was Bitcoin Brought Down by a Chinese Ponzi Scheme?

The Chinese PlusToken scam may have influenced Bitcoin’s price, Chainalysis hypothesizes in a blog post. Though it’s unlikely to be the main factor, movements of stolen funds correlate very well with market downturns. What is PlusToken? PlusToken was a classic Ponzi scheme similar to BitConnect or countless others. The founders promised monthly returns from 9...
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Mining-Based US Ponzi Scheme Busted After Raking in $722 Million

Five men were charged in connection with BitClub, an alleged $722 million Ponzi scheme. The founders were caught saying they targeted the “typical dumb MLM [multi-level marketing] investor.”  BitClub Network Goes Down On Nov. 10, the U.S. District Court in Newark, New Jersey, accused Matthew Brent Goettsche, Jobadiah Sinclair Weeks, Joseph Frank Abel, and Silviu...
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The State Encourages ICO Fraud. The Free Market Minimizes It  

Many Initial Coin Offerings (ICOs) have been and are frauds. The state enables this con game in various ways, including the establishment of accredited investors and the regulation of businesses that sell equity. Shut off from the most lucrative aspects of investment, average people rush into the few sources of profit still available to them....
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OneCoin $4 Billion Ponzi Scheme: Founder’s Brother Eyes 90 Years in Jail

The cryptocurrency ecosystem is no stranger to scams and pyramid schemes. Exciting new technology, coupled with dramatically rising prices a few years ago, helped lure people into get-rich-quick schemes that only served to part them from their hard-earned money. One of the biggest cryptocurrency scams is OneCoin, which managed to take in almost US$4 billion....
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Crypto Exchange Execs From South Korea Jailed For Fraud

Crypto exchange execs from South Korea were convicted by the South Korean court including the head of cryptocurrency exchange Coinup for fraud; he’s been sentenced 16 years in jail. The company’s vice president was sentenced 11 years in jail, and also eight other executives were given jail time. Let’s read further in the cryptocurrency news...
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Bitfinex Claims to Be Victim of Fraud After Crypto Capital President Arrested

The operators of Bitfinex claim that the cryptocurrency exchange is a victim of fraud committed by its payment processor Crypto Capital. The men behind Crypto Capital now face charges related to money laundering in Poland and the U.S. Also Read: Tether Created ‘Largest Bubble in Human History’ Claims Lawsuit Against Bitfinex Crypto Capital Leadership Accused...
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Crypto Capital’s Oz Yosef Indicted On Fraud, Bitfinex Allegations Confirmed

Crypto Capital’s Oz Yosef, who is the principle of the company, was indicted on three criminal counts by the US Attorney’s Office of the Sothern District of New York on Wednesday, October 23. This means that the allegations that Bitfinex made earlier this week as we read in the blockchain news. The statements made by...
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Bitfinex Claims it is a Victim of Crypto Capital’s Illicit Business Practices

Over the years, there have been numerous allegations of wrongdoings by the Bitfinex exchange. None of those claims have ever been proven. In a recent announcement, the company claims it too fell victim to the business practices by Crypto Capital. A somewhat surprising turn of events, albeit it would explain a few things.  The Crypto...
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Victims of Mayweather-Backed Centra Scam Defend Themselves in Court

Investors in Centra Tech, a defunct crypto firm that was accused of fraud, defended their renewed class certification bid in a Florida federal court yesterday, after being denied in an initial motion. During its initial coin offering (ICO), Centra was promoted by celebrities like DJ Khaled and boxer Floyd Mayweather. The Charges Came Too Late,...
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Alleged Las Vegas Scammer Charged for $11 Million Crypto Binary Options Ponzi

A Las Vegas man is charged with raising at least $11 million from cryptocurrency investors he promised to trade binary options for, and make gains of up to 300%. According to the charges the money was sent from new clients to previous ones in a classic Ponzi scheme manner. Also Read: Binance to Add Bitcoin...
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Bitcoin Ponzi Busted: Nevada Firm Charged With $11 Million Crypto Fraud

Circle Society, Corp., and its owner, David Gilbert Saffron, have been charged with fraud relating to an Bitcoin and crypto asset investment scheme. The Nevada-based firm is suspected of operating an $11 million binary options scheme.The charges have been brought by the CFTC. Curiously, the chair of the US financial regulator said such scams were...
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ICOs Are Dead But ICO Scammers Are Immortal

The initial coin offering may have all but died, but the ICO scammer marches on regardless. Whereas legitimate projects have to wrangle with all kinds of challenges including the strength of the market, generating value for investors, creating a real product and actually delivering on the promises they make, the soulless scammer is unencumbered by...
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TRON Plagued By Infestation Of dApp Bots: AnChain Report

AnChain is a new analytics startup, and it’s on a mission: to uncover dApp bots wherever they hide. During Q1 of 2019, the firm surveyed TRON’s top ten gambling dApps and found a large number of bots. Roughly 31% of surveyed accounts and 19% of transactions were bot-driven, accounting for a whopping $270 million of...
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Bank Raided, Arrests Made but RBI Still Restricts Withdrawals

The crisis has elevated at the cooperative bank recently placed under regulatory restrictions by India’s central bank. Multiple branches have been raided and several arrests were made. However, the RBI continues to impose a withdrawal limit, preventing bank customers from accessing their savings. The bank has 137 branches across India. Also read: RBI Ban Stops...
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SEC Imposes Multimillion Dollar Fine for Unregistered EOS Token Sale

The United States securities regulator has announced hefty fines for two crypto companies. The penalties have been imposed for EOS’ unregistered token sale and a fraudulent public offering. The Securities and Exchange Commission (SEC) intends to use some of the collected money to indemnify investors who suffered damages. Also read: SEC Commissioner Speaks Positively About...
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BitQyck Founders Agree to Return $8.4m to Defrauded Investors

Numerous ICO projects have been flagged as illegal securities. A lot of those companies are now under investigation by the SEC. The company behind BitQyck, which allegedly defrauded investors, had its founders agree to pay $8.4m in damages. This is a key development for current and future investigations.  The BitQyck Scheme While many people assumed...
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Saudi Arabia Warns of Crypto Scammers Posing as Gov’t Projects

Saudi Arabia’s Finance Ministry has warned against crypto tricksters using the kingdom’s official emblem to promote tokens that purport to be tied to government projects. Saudi Arabia’s Finance Ministry has warned against crypto tricksters using the kingdom’s official emblem to promote tokens that purport to be tied to government projects. Arab News reported on Aug....
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Judge Rejects Multimillion Dollar Asset Plea in Crypto Fraud Case

A Canadian judge has dismissed a motion to set aside an asset freeze in a civil forfeiture case involving the purported FUEL token. A Supreme Court judge in British Columbia (BC), Canada, has denied a motion to set aside an asset freeze, which was requested by the defendants in a multimillion dollar cryptocurrency fraud case....
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$240M in Suspected Scheme Assets Moves in Four Bitcoin Transactions

Over $240 million in suspected proceeds from crypto exit scheme PlusToken have moved in four Bitcoin transactions. Over $240 million in proceeds from the alleged crypto scheme PlusToken have reportedly moved through four Bitcoin (BTC) transactions. Whale Alert — a Twitter account dedicated to reporting large cryptocurrency transactions — posted on Aug. 17 that four...
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CoinGecko Joins AMLT Network to Combat Exchange Fraud, Scams, Hacks

CoinGecko has joined a blockchain analytics network focusing on anti-money laundering and know your customer issues in an effort to improve its exchange transparency services. Crypto market aggregator CoinGecko has joined the network of blockchain analytics and anti-money laundering (AML) company Coinfirm. This partnership will reportedly allow CoinGecko to improve its exchange Trust Score algorithm,...
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Justice Department Slams Crypto Escrow Exec Over $7 Million Fraud

The U.S. Attorney’s Office of the Southern District of New York has indicted the head of a bitcoin escrow company for defrauding investors of $7 million. According to the press release published by the division of the Department of Justice, head of Volatnis Escrow Platform LLC, Jon Barry Thompson, was charged with two counts each...
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Bitcoin Phone Scammers Defraud Victims of $2 Million in New York

The New York Police Department (NYPD) has issued warnings on an increase in Bitcoin-related fraudulent activity where con artists impersonate key government officials to defraud unsuspecting victims. NYPD spokesperson says con artists using this method have already stolen millions of dollars from hundreds of people. New York is only the latest in an increasing number...
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