Tag Archives: crypto scams

The United States Department of Justice (DOJ) has indicted two men for perpetrating a crypto Ponzi scheme that defrauded investors of approximately $25 million. According to a press release from the Justice Department, 51-year-old David Gilbert Saffron of Australia and 52-year-old Vincent Anthony Mazzotta Jr. of California operated a fraudulent crypto investment scheme that lured victims with false promises of high returns. DOJ Charges Two Men for Operating Crypto Scheme Per...

TL;DR Warning About Fraudulent NFT Scheme: The Cardano Community, a Twitter account, warned users about a scam involving Berry Pool delegators receiving a dubious NFT, falsely promising extra ADA rewards through a fraudulent event. Significant Losses Incurred: Victims who connected their wallets and signed transactions following this scam have suffered losses exceeding 200,000 ADA. The associated website has been identified as a scam. Advice for Caution and ADA Price Surge:...

The IRS Criminal Investigation (CI) has disclosed its top 10 cases of 2023, representing the most significant incidents of the previous year. CI Chief Jim Lee highlighted that billions of dollars in fraud, victims across the globe, and criminals are all about personal gain. In a statement to CryptoPotato, Lee said that the CI investigation successfully dismantled international tax schemes that targeted individuals’ personal information, probed multi-level marketing schemes...

A phishing scam targeting the Stargate Snapshot platform resulted in significant financial losses. A Discord Moderator of LayerZero, the underlying network of Stargate, revealed that a scammer effectively carried out a deceptive proposal vote, utilizing a phishing link to manipulate users into staking STG tokens. Scammer Misleads Token Holders in Fake Proposal Vote The scam unfolded on the Stargate platform, governed by its token holders, who participate in voting on various...

A circuit court in Estonia overturned a previous ruling allowing the extradition of two Estonian citizens charged with cryptocurrency fraud and money laundering to the United States. According to the court, the Estonian government did not consider certain circumstances before agreeing to extradite the individuals involved in the case. New Court Ruling Cancels Extradition Approval Ivan Turogin and Sergei Potapenko, who ran a virtual currency mining business called HashFlare,...

Following the JPEX fiasco, it appears that another crypto trading platform called Hounax reportedly scammed some Hong Kong investors, causing them to lose over $15 million. Meanwhile, some of the victims believe that the city-state regulator’s warning about the platform came after they already locked their money in Hounax. Hounax Crypto Exchange Allegedly Disappears With Customer Funds About 131 supposed investors between 19 and 78 years old fell victim to an alleged crypto...

Electric Capital, a prominent venture capital firm, has warned about a sophisticated scam operation targeting potential investors. Avichal Garg, Co-Founder and General Partner of Electric Capital, revealed in a recent post the alarming tactics being employed by scammers. Electric Capital Exposes Sophisticated Crypto Scam According to Garg, the fraudsters are masquerading as representatives of Electric Capital, orchestrating meetings and deceitfully persuading individuals to...

United States prosecutors arrested three people for allegedly stealing $10 million from financial institutions and laundering the stolen funds using cryptocurrency exchanges. The individuals could each get up to over 80 years in prison if found guilty of the allegations. Defrauding Banks and Channeling Proceeds to Crypto Exchanges A press release by the U.S. Attorney’s Office for the Southern District of New York announced the arrest of Zhong Shi Gao, Naifeng Xu, and Feo...

On Nov. 15, Scott Melker, aka “The Wolf of All Streets,” said that one of his followers was hacked in the latest scam targeting Ledger users. While checking his Nano S hardware wallet, the user reported seeing a 503 HTTP API error when it attempted to synchronize, “which in and of itself terrified me.” The victim reached out to Ledger support and reported having the CTO (chief technology office) contact him via direct message on X. This is when alarm bells should have rung as...

The founders behind the once multi-billion dollar cryptocurrency, SafeMoon (SFM), have been charged with multiple counts of fraud and conspiracy by U.S. government, with accompanying charges from the Securities and Exchange Commission (SEC). On Wednesday, founders Braden John Karony (aka “CPT_HODL_T_MUN”) and Thomas Smith (aka “papa”) were arrested in Provo, Utah and Bethlehem, New Hampshire, respectively. The third defendant, Kyle Nagy (aka “SafemoonDev”) remains at large....