Tag Archives: crypto scams

In a high-profile case involving a massive cryptocurrency fraud, a British-Chinese woman, Jian Wen, has been sentenced to six years and eight months in prison for her role in laundering Bitcoin proceeds from a $6 billion investment scam in China. Wen, aged 42, was found guilty in March of laundering Bitcoin on behalf of her former boss, Yadi Zhang, whose real name is Zhimin Qian. According to a recent report, Qian is alleged to have defrauded around 130,000 investors in...

Rashawn Russell, a former investment banker, has been sentenced to 41 months in jail for wire fraud related to a cryptocurrency and access device fraud. Russell’s sentencing took place at the Eastern New York District Court in Brooklyn after his September 2023 guilty plea. Former Banker’s $1.5 Million Crypto Fraud Prosecutors detailed that Russell began soliciting investments in November 2020, targeting friends, former college classmates, and co-workers for his R3 Crypto...

Hong Kong police have taken into custody three employees of a currency exchange shop who are suspected of engaging in fraudulent activities. This followed an incident where a customer at the shop reportedly encountered stacks of “hell money” before executing a cryptocurrency transfer worth approximately HK$1 million. Hong Kong Authorities Arrest 3 for Crypto Fraud On Wednesday, Hong Kong’s technology crime division apprehended three individuals aged between 31 and 34. The...

After wreaking havoc across the digital asset sector and stealing millions of dollars, scam-as-a-service kingpin ‘Pink Drainer’ has vowed to erase all traces of its operations and announced the winding down of its nefarious infrastructure. In an unexpected statement shared via Telegram, Pink Drainer, the wallet drainer tool known for siphoning funds from cryptocurrency wallets, announced its retirement. This decision comes after Pink Drainer said that it had reached its...

The individual associated with a recent $71 million wallet phishing attack has finally begun transferring the funds to new addresses. The scammer’s wallet remained inactive for the last six days after converting the stolen 1,155 WBTC into around 23,000 ETH. Scammer Transfers Stolen Crypto The bad actor stole Wrapped Bitcoin (WBTC) on May 3 after creating a wallet address closely resembling the victim’s in an “address poisoning” scam. The address featured similar alphanumeric...

Blockchain analytics company Elliptic said that its researchers have made progress in leveraging artificial intelligence (AI) to detect money laundering in Bitcoin. A recent paper detailing this research was co-authored with researchers from the MIT-IBM Watson AI Lab. Elliptic revealed a successful identification of illicit proceeds deposited at a cryptocurrency exchange, new patterns of money laundering transactions, and previously unidentified illegal wallets upon utilizing...

A New York court and the Federal Bureau of Investigation (FBI) have revealed an indictment against Idin Dalpour. The 39-year-old New York resident is accused of organizing a sophisticated Ponzi scheme that allegedly defrauded investors of $43 million. $43 Million Ponzi Scheme According to the indictment, he ran the Ponzi scheme from approximately 2020 through April 2024. He targeted investors in the United States and abroad, soliciting investments through an entity he...

On April 29, Dutch law enforcement arrested a man believed to be connected to the fraudulent activities associated with the ZKasino internet gambling platform. During the operation, authorities confiscated assets valued at approximately 11.4 million euros ($12.2 million), including cryptocurrency, real estate, and luxury vehicles. Dutch Authorities Seize Millions in Assets According to a Fiscal Information and Investigation Service (FIOD) report, the 26-year-old man was...

Crypto hackers have claimed another major victim, fooling him into sending $68 million to a wallet he thought was somebody else’s. Blockchain data indicates that a once-wealthy Ethereum user lost all of his Bitcoin holdings after hackers contaminated a recipient’s wallet history. The user now holds just $1.6 million in crypto at his address. The Danger Of Address Poisoning According to Etherscan, the sending wallet’s remaining assets include 0.89 ETH ($2,747) and 1.63 million...

The X account of famous actor Tom Holland, which has over 7 million followers, was recently hacked. The attackers used his platform to promote a fake cryptocurrency and NFT scheme. Fake ‘Spiderverse’ Partnership with Binance The compromised account was used to announce a partnership with the global crypto exchange Binance, supposedly launching “Spiderverse” tokens. A link to a fake website was attached, enticing users to gain early access to the fake SPIDER cryptocurrency and...