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...
Rice is accused of scamming investors out of more than $4 million through a cryptocurrency scam that promised federally insured accounts and brand-name credit cards.
Commissioner Rome signed the orders against Global Pay Net, Credits LLC, CrowdShare Mining and CyberSmart Coin Invest for allegedly publishing misleading statements on their websites with false promises to defraud investors.
