Scams

The latest monitor report on defunct crypto exchange QuadrigaCX revealed that its CEO misused customer funds.

Nearly 100 victims from various parts of China have reported to the Hangzhou police bureau, claiming that two young men stole nearly 7,000 bitcoin.

A Dutch news outlet has reported the arrest of a local man on charges of deceiving investors with a bogus bitcoin mining scheme.

The U.S. Commodity Futures Trading Commission had a message for conference goers at Consensus 2019: “Be on the lookout for virtual currency fraud” and if you see it, let us know.

Several major cryptocurrency traders, including representatives from Galaxy Digital Holdings and Cumberland DRW, reportedly met to discuss an industry-wide blacklist of suspicious actors to stem the tide of scams and theft in the space.

“To avoid the fraud and scam detection systems employed by banks, scammers are now increasingly asking for payment via unusual payment methods such as gift cards and cryptocurrencies.”

Sensing a rise in crypto-related scams and fraudulent investment schemes, the SEC and the CFTC have issued a joint warning to investors, encouraging them to take a more thorough approach to verifying potential investments in the space.

According to a report by research and risk assessment firm Digital Shadows, this scam was committed through a wide array of “sextortion” blackmail strategies, which included the weaponization of emails.

The company had reportedly lost $26 million as a result of theft and the subsequent bankruptcy declaration. Coinbin’s CEO Park Chan-kyu claims that the move was “due to a rise in debt following an employee’s embezzlement.”

On January 26, 2019, clients of peer-to-peer bitcoin trading service LocalBitcoins were the targets of a phishing scam which resulted in the theft of...