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Bitcoin Scams

Angry Crypto Investors From Africa Burn Down Scammer’s House

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Angry Crypto

Angry crypto investors from South Africa went after the person behind the Bitcoin Wallet Ponzi scheme as we previously reported here in our latest cryptocurrency news.

Many of the investors put their money into the Bitcoin Wallet scam hoping to double their money so they decided to burn down the house of the operator of the cryptocurrency scheme, Sphelele Sgumza Mbatha.

According to the Times, the angry crypto investors set Sgumza’s house on fire and other properties as well that belonged to Mbatha who reportedly was the operator of the scam which was based in Kwa-Zulu Natal’s town of Ladysmith. Among the many items that got destroyed in the fire, including a very luxury vehicle that belonged to Sgumza. Before setting the house on fire, his house also got looted with furniture and electronic items getting stolen and driven away in a light truck. It was not clear whether the looting had something to do with the angry crypto investors or just opportunists.

The people that invested in the scam have previously gone after Sgumza to no avail. The hunt started on Tuesday night when the investors tried to get into the Bitcoin Wallet’s premises in a bid to try and get their money back after the news emerged that the investment scheme had collapsed. In the process, the staff of the company was assaulted by the angry investors before they were taken away to the local police station. The fake reports noted that Sgumza has been arrested which led to a massive group of people to go to the police station.

Just a few weeks ago, Sgumza earned the nickname ‘’Lord of Ladysmith’’ because of his luxurious lifestyle. On the streets, he became very popular as the Bitcoin Wallet’s popularity grew. The trigger for the bad turn came over the weekend after the reports stated that the Ponzi scheme has closed the shop after running out of money to pay the investors. Bitcoin wallet, of course, denied the reports saying that they are only moving operations online in order to cater to the massive demand.

As noted in the altcoin news, Sgumza disclosed that the Bitcoin Wallet website has been hacked. He also later claimed that he was not the CEO of the company but only an employee.

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Bitcoin Scams

Bitcoin Reaches The Second Inning As Bakkt Launch Nears

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Bitcoin Reaches
Bitcoin reaches the second Inning as the launch of the crypto exchange bakkt is nearing since it is considered as the major driver for institutional crypto adoption and the bull market. In the coming altcoin news today, we take a closer look at the cryptocurrency and what the Bakkt launch will bring us. Bakkt was supposed to be launched already but as we can see, it is still pending. This increases the chances that the 2019 bitcoin bull run has just started since the bitcoin exchange company is boosting the Wall Street companies with the promise of uncorrelated returns to the stock market. The launch has taken longer than expected but the work is ongoing. The User acceptance  testing (UAT) is scheduled to begin soon according to the exchange and a Fundstrat research report:
 “Bakkt’s launch is expected late in the current quarter.”  “Bakkt could be a huge catalyst for institutional participation in the crypto market.”
Bakkt hosted a summit this week at the NYSE and the company behind it-ICE stated that the things are looking quite bullish for the bitcoin cryptocurrency in the latter part of the year. According to the Fundstrat note, there is a robust turnout at the conference of more than 100 investors. The Commodity Futures Trading Commission which is the most important agency in the launch of Bakkt’s bitcoin futures contracts also had representation. Fundstrat’s reports show that the CFTC  is seeing massive growth in demand and interest for Bitcoin futures from the Public. The bitcoin futures contracts by the CME and CBOE are still considered as the mark of the beginning of the crypto bull market. This is why bitcoin reaches the second inning since soon it will be clear whether the history will repeat itself again. As the latest cryptocurrency news report, Ari Paul, the CIO of BlockTowerCapital participates in the Bakkt event and he is helping with the new addition of users into space. The report also shows that Paul believes that retail adoption will be massive once the app and UI make crypto on-ramps safe and easy to use as PayPal.  
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Bitcoin Scams

Australian Couple Loses $900,000 In A Crypto Scam

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australian couple
Australian Couple Mike Taylor and his wife Karen in their mid-seventies lost more than $900,000 after investing in an elaborate cryptocurrency scam according to the reports we have in our latest cryptocurrency news below. The Australian Couple told the 7News local station that the losses included their lifetime savings:
 “That was the whole of our superannuation – that’s now gone.”
They didn’t explain how the scheme actually worked but Taylor commented that it was during a crypto trading scam website that promised high returns. He added that they decided to invest because the site ‘’looked legitimate.’’ The couple decided during a trip around the country to invest in the scam. They stated that the money basically disappeared and left the couple and many other Australians in the bankruptcy. Taylor told 7News that he had to go back to work and sell his old 1965 Pontiac in order to make the ends meet. This is not an isolated case according to the reports. On the contrary to what people think, crypto scams have increased massively since 2017 according to the reports issued by the Australian Competition and Consumer Commission since 2018 that the losses generated by the crypto scams reached about $6.11 million which shows a massive 190 percent increase over 2017. With the new addition of the $990,000 already gone, 2019 sets a new trend for crypto scams and the Australian Securities and Investments Commission is aware of this happening. There is a 32 percent increase in fraud since 2018 with more than 2,400 reported cases. The Australian watchdog announced the new corporate action plan for 2018 that the crypto sectors and ICOs are the number one priority. If the new policies become a success the country will be able to reduce the crypto scam phenomenon. One strategy that showed to be successful among the scammers is to usurp the identity of celebrities to deceive users. The most popular case was the one of High Jackman which guaranteed returns of more than 10,000 percent. The cryptocurrencies have characteristics that could complicate the protection of users in times of fraud mainly because the transactions are irreversible which makes it impossible for any entity to return funds to a scam victim. Also, the network is decentralized and removes the control from the bank but also there is a high level of anonymity which makes it difficult to know who owns a particular wallet as noted in the altcoin news reports.
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Bitcoin Scams

Hacked Bitpoint Exchange Finds $2.3 Million In Stolen Crypto

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Hacked Bitpoint
The Japanese cryptocurrency exchange Bitpoint, which was all over the latest cryptocurrency news last week, has managed to discover part of the stolen funds. The hacked Bitpoint exchange discovered more than 250 million yen ($2.3 million USD) in cryptocurrency which is only  a small part of the $32 million that they lost due to hacker attacks. The local English language daily The Mainichi first reported about this on July 14. According to the publication, Bitpoint found the stolen cryptocurrency on overseas exchanges which were using a trading system provided by Bitpoint Japan. The hacked Bitpoint exchange told the source that the recent discovery brings the total sum of lost founds down from 3.5 billion yen ($32 million) to 3.02 billion yen ($28 million) as the latest altcoin news show. For those of you who did not follow the news, the hacked Bitpoint exchange was initially compromised on July 12. More than 2.5 billion yen ($23 million) of the stolen funds in the hack belonged to customers, while 1 billion yen ($9.2 million) belonged to the exchange. As many best cryptocurrency news sites showed, the hackers stole Bitcoin (BTC), Litecoin (LTC), Ether (ETH) and Ripple (XRP) from the hot wallets of the exchange. The hacked Bitpoint exchange then suspended all of the services following the hack, while the parent firm of the exchange, Remixpoint Inc., managed to shed 19% following the theft. Remixpoint went untraded in Tokyo after the attack due to a reported glut of sell orders. The recent incident that involved Bitpoint follows a record-breaking hack of the Japanese exchange Coincheck. The truth is, the hacked Bitpoint exchange is not even close to the sum that Coincheck lost - when more than $534 million worth of NEM tokens were directly stolen from the exchange's low-security hot wallet. What hurts people the most is the fact that Bitpoint was one of the several exchanges that received a business improvement order from Japan's finance watchdog - the Financial Services Agency (FSA) - in June of last year. One of the FSA's main concerns was the exchanges' compliance with Anti-Money Laundering as well as Know Your Customer requirements. The agency also expressed their concerns about customer funds not being kept sufficiently separate from those of the exchanges.
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Bitcoin Scams

Indian Authorities Arrest Four Crypto Ponzi Scheme Operators

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bitcoin is not banned
The Criminal Investigation Department (CID) of India is featured in the altcoin news for arresting four people accused of operating a crypto-related Ponzi scheme. The Indian authorities arrested Vijay Prajapati, Dhiraj Patel, Kamruddin Syed, and Ashiq Shaikh, all of which are the alleged creators of the KBC Coin cryptocurrency as a report by the Times of India shared on July 4. The report cites CID which argues that KBC is a Ponzi scheme. Launched 6 months ago, the price of KBC has not moved since. This is why the Indian authorities believe that it was a potential scam. The KBC coins were reportedly issued at a value of 10 paisas for each piece, with a promise that they would skyrocket in value to 10 rupees in a very short time. As the coming altcoin news then shared, people bought the coins and expected them to rise 100-fold. According to one CID member, an individual named Baljeetsingh Lashkariya first promoted KBC via a pyramid scheme. The Indian authorities are investigating this case. Meanwhile, the promotional materials show that the “first investor in the chain would get an incentive from the last circle of investors. This offer played a major role in bringing more investors to the company.” Lashkariya and another promoter named Mohan Patel have reportedly "gone underground" about the case. As reported by many best cryptocurrency news sites before this, Indian authorities and legislators have proposed a bill that would punish crypto enthusiasts in the country with up to 10 years in jail for violating the country and its anti-crypto laws. Still, no one knows if this bill is going to pass. The enforcement policy that the Indian authorities are carrying out is apparently part of the bill - which is titled “Banning Cryptocurrencies and Regulation of Official Digital Currency Bill 2019,” according to reports from The Block. At the end of May this year, SEC sued a California resident on charges of selling unregistered securities and conducting a Ponzi scheme disguised as a cryptocurrency - and taking away $26 million from users. The case in India is very similar to this case, and the Indian authorities should definitely sanction it completely.
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