The Financial Conduct Authority (FCA) which is the British financial regulator, just one day ago issued a warning against an illegal crypto-related firm named Next Coin Market according to the official statement of the regulator that we have in our blockchain news today.
According to the regulator, the Bulgaria-based Next Coin falsely claimed to have the authorization to operate in the country from the UK financial authority and that it was able to offer crypto-related services to the British residents.
The Financial Conduct Authority explained that Next Coin was making users click a link that led them to a fake website that was well-created and made people believe that the company was legit and that it was authorized by the regulator. However, Next Coin was not registered according to the FCA and even turned out that the company is involved in criminal activity.
The regulator asked the public to report cases that are related to false claims of companies claiming to be authorized by the FCA. Before transferring money, the FCA advises the public to first research or report any concerns to the UK national reporting center for cybercrime and fraud-Action Fraud.
The FCA also made clear that anyone who operates as an unauthorized company is not protected by the Financial Services Compensation Scheme which means it cannot complain to the Financial Ombudsman Service which is the expert in resolving financial issues.
Also, very recently, the Swiss-based crypto bank Dukascopy issued multiple warnings against forex trading companies mainly GCG Asia which aims to scam people by representing as the bank’s authorized branch-company.
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“Scammers can be very convincing so always do your own research into any firm you are considering investing with, to make sure that they are the real deal.”The report is a viral topic in the latest cryptocurrency news - mostly because the FCA stated that scammers use social media to find potential investors. According to the regulator, crypto and forex scams like these often use pictures of celebrities with fake endorsements alongside images of luxury goods such as cars and watches. In 2018, the initial coin offering (ICOs) advisory firm Statis Group released a study in which it found that more than 80% of ICOs in 2017 were scams. The associated losses for that year, as the study showed, totaled around $1.34 billion. In the latest altcoin news, we can also see that new evidence surfaced, suggesting that purported Bitcoin (BTC) exchange Goxtrade is a Bitcoin scam. As the evidence shows, Goxtrade reportedly used the real names and photos of unaffiliated parties including the blockchain figure Amber Baldet to fill their website staff page and its absent from the UK's registry of companies and businesses. All in all, the number of crypto and forex scams is increasing and there must be certain regulation to prevent these billions which are lost on a yearly basis.
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“Please also understand that the hackers may still control certain user accounts and may use those to influence prices in the meantime. We will monitor the situation closely. But we believe with withdrawals disabled, there isn’t much incentive for hackers to influence markets.”Right now, Zhao believes that the Bitcoin scam won't have a big incentive to influence markets. As he added, he is working on conducting a Twitter AMA to field questions from the community. The Binance Bitcoin scam has triggered the exchange to use a Secure Asset Fund for Users (SAFU) which will help and cover the incident. The altcoin news show that there is no risk for other altcoins to be stolen. As a reminder, Binance created the fund in July 2018 as a type of emergency insurance for cases like these.
ISIS Used Bitcoin To Fund Horrific Sri Lanka Easter Bombings: Research
“CoinPayments admits that their wallet was involved but denied that it is connected to ISIS,” the blockchain intelligence firm told Globes. “It’s possible that the company is not aware of the usage of their wallets, perhaps because ISIS uses straw companies [to] transfer the money.”For all of you wondering why ISIS used Bitcoin and not any altcoin (which would been featured in our coming altcoin news), the truth is that ISIS-linked Bitcoin wallets exist and WhiteStream has been following them for the past two years. In fact, the company maximized its focus on one specific Bitcoin wallet which was receiving donations actively over different periods. In that manner, WhiteStream found that ISIS used Bitcoin from a wallet address listed on the ISIS fundraising website. According to Levy, the transactions were passively traced back to CoinPayments while the company did not know that they were actually facilitating the ISIS Bitcoin funding campaign. As Levy said:
“Our assumption is that the terrorist organization probably possesses many bitcoin addresses through CoinPayments, with every donation sent to a different address,” Levy told Globes. “On the day before the Sri Lanka terror attacks, we identified two relatively big transactions at this address with bitcoins worth about $9,800.”In February, Whitestream had named CoinPayments for facilitating Bitcoin-enabled donation campaigns for Hamas which is a Palestine-based Sunni-Islamist fundamentalist group.
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