Tag Archives: crypto scams

Coinbase CEO Brian Armstrong just fell for the oldest trick in the crypto-twitter playbook.When Harry Potter author J.K Rowling made a surprise entrance to the Bitcoin space this weekend, Armstrong attempted to welcome her in. When Rowling apparently made a $100 BTC purchase, Armstrong told her to get over to Coinbase and urged her to check out all the other crypto assets on offer.Coinbase CEO’s Bitcoin MistakeOnly the account Armstrong replied to was a fake one. J.K Rowling did not purchase...

Recent Chinese reports indicate that a new cryptocurrency scam, resembling the notorious PlusToken, has been brought to trial this week. Dubbed WOTOKEN, allegedly scammed over 700,000 users and absorbed more than $1 billion worth of Bitcoin and other digital assets.The New Chinese Threat: WOTOKENAccording to local reports, the trial began on May 14th in the People’s Court of Binhai Country, Yancheng City, against six defendants allegedly operating the WOTOKEN project. More specifically, the...

The Ethereum blockchain is suffering a period of heavy congestion, partly caused by what appears to be a Ponzi scheme. Thousands of transactions are being pinged all across the network—all leading to a single address, which now holds $5.3 million worth of Paxos Standard (PAX) tokens.That address belongs to the operators of MMM Global – a multi-level marketing scheme that offers 1% returns on investment per day. Targets are urged to contract more people into the scheme, with the promise of...

The US Commodity and Futures Exchange Commission (CFTC) has charged the executives of two companies for alleged involvement in scams with cryptocurrencies and binary options. Both fraudulent activities had misleading marketing campaigns claiming to bring quick and significant profits regardless of any price movements.CFTC Charges New ScamsPer the document released earlier this week, two massive fraudulent solicitation schemes occurred between October 2013 and August 2018. The first one...

Crypto scams are nothing new, and now several people are finding themselves facing jail time and other harsh penalties for allegedly taking part in a series of them within China and Malaysia.Crypto Scams Keep HappeningOfficials from the latter country have arrested approximately 14 separate individuals for their alleged roles in a series of crypto scams that took place over the span of several months. All individuals arrested are Chinese nationals that were living and working out of Malaysia,...

A Texas federal judge has issued bench warrants for the arrest of a former Washington state senator and his partner after failing to appear for a hearing. The two men, David Schmidt and Robert Dunlap, have been involved in a purported cryptocurrency scam dubbed Meta 1 Coin. The SEC Charges A Crypto Scam On March 20th this year, the Securities and Exchange Commission (SEC) announced that it had obtained an asset freeze and other emergency relief to halt an ongoing securities fraud. Robert...

Ripple, the payment protocol and the company behind the third-largest cryptocurrency XRP, is taking legal action against the video giant YouTube. The firm wants to hold the platform accountable for not fighting the increased number of giveaway scams and false impersonations appearing on its website. Ripple Sues YouTube In a recent post, Ripple announced that it will file a lawsuit against the most widely-used video sharing platform. The company blames YouTube for not taking the necessary...

Another cryptocurrency-related scam led to the arrest of 14 Chinese men near Singapore. By impersonating successful investors, the perpetrators tricked victims using chat groups in popular Chinese messaging apps into sending them digital assets. 14 Chinese Men Arrested For A Crypto Scam According to a recent local report, the Chinese men conducted the fraudulent operation for at least two months. Authorities were surveilling the group for the past several weeks. They made the arrests On...

The Federal Bureau of Investigation (FBI) has issued an official warning regarding the increasing number of COVID-19 scams involving cryptocurrencies. The agency outlined various fraudulent activities, including blackmail attempts, work from home fake ads, and investment scams.FBI: Beware Crypto And COVID-19 ScamsThe sudden COVID-19 outbreak caused numerous disruptions in regular day-to-day life. Millions of confirmed cases worldwide, entire nations under lockdown led to people losing jobs...

Funds sent to cryptocurrencies scams exploiting the COVID-19 pandemic have decreased since the start of March. Scammers are using mostly phishing and blackmail emails, but their efforts have not marked much success as of late.Crypto COVID-19 ScamsAside from the many positive features cryptocurrencies possess, they are also sometimes involved in suspicious and fraudulent activities. The sudden outbreak of the coronavirus attracted numerous scams where the perpetrators requested digital assets...