Connect with us
CLOSE

Bitcoin Scams

Chinese Ponzi Scheme Caused The Latest Bitcoin Sell-Off

Published

on

Chinese Ponzi

Chinese Ponzi scheme was the reason for the latest Bitcoin-sell off according to the Primitive founder Dovey Wan as we are reading in the latest cryptocurrency news today.

The PlusToken Ponzi scheme scammed more than 200K BTC and 800K ETH and are now hitting hard on the exchanges. What started in the middle of 2018, PlusToken was a classic Chinese Ponzi scheme offering high-yield investment returns. There four about four layers of membership structure offering some increasing dividends. By the start of 2019, there were more than 10 million members. The entire team of the scheme was caught by the police two months ago and will now stay in jail for many years according to Wan. However, the $3 billion of cryptocurrency they scammed out of members has not been recovered yet. Many of the Bitcoin wallet addresses which were used are not believed to be multi-sig which leads to speculation that some of the key holders remain at large.

The security audit company Peckshield has been monitoring some money-flow activities from the PlusToken wallets and has found that since early-July, more than 1000 BTC has gone into Bittrex and Huobi and some of the funds were moved into small batches of 50 and 100 bitcoins per batch. Some reports even claim that the Chinese traders noticed that someone was also consistently dumping 100BTC batches into Binance and they believe they are related to PlusToken.

According to Wan as we have red in the altcoin news previously, there are three reasons why the exchanges didn’t pay attention. One of the main reasons is that the scam has not been known outside China and maybe South Korea. The Chinese exchanges did not act because the case has been closed officially by the Chinese police. The police also didn’t work with the exchanges because the exchanges are officially banned in China. Now, both Chainalysis and Peckshield are monitoring the coins involved in the scam but the exchanges now also got involved. There is little that can be done about the tokens that were already cashed out but the exchanges are able to freeze the income tokens relating to known scams.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at editor@dcforecasts.com

Continue Reading
Comments

Bitcoin Scams

Chinese Exchange Fcoin Closes, Still Owes Users $125 Million

Published

on

By

chinese exchange fcoin
The latest Bitcoin scam news show that scams can even come from an exchange. The simple example is the Chinese exchange Fcoin which recently revealed that it may not be able to pay the 7,000 to 13,000 in BTC (around $67 million to $125 million) that it owes its users. According to Zhang, the exchange has not been hacked and is not an exit scam. Still, evidence suggests that it might be exactly that. Zhang claims that the shutdown is a result of series of internal data errors and decisions which are too complicated to explain. As he said:
“This is a problem that is a little too complicated to be explained in a single sentence, the time span is also large, and the two story development lines are advancing and affecting each other at the same time, leading to the final outcome.”
The Chinese exchange Fcoin is now in the cryptonews. After its launch in May, the reported trading volumes became some of the biggest in the world overnight thanks to a new business model called "transaction mining." Later on, one Reddit user reported that this volume was actually fake - which is when the problems started. The exchange was later on described as a scam by many and the suspicions about its business model turned out true. There was no airdrop nor ICO at launch and the Chinese exchange Fcoin distributed 51% of its native tokens to users for reimbursing transaction fees. The CEO of Binance, Changpeng Zhao, has publicly called FCoin a Ponzi scheme since the middle of 2018, commenting on Zhang's post in a tweet which read:
“I rarely called out anyone, with exceptions. On Chinese social media, I called FCoin a pyramid scheme in mid-2018. Their founder calls his own plan a "better invention than #Bitcoin". That did it for me. Who would say such a thing? About themselves? Except scammers.”
https://twitter.com/cz_binance/status/1229446449152348161 To this, Zhang replied saying that there have been some errors which the Chinese exchange FCoin detected - but did not explain why it failed to address such problems before it is too late.
‘With the deepening of the investigation, we found a large number of existing data problems of dividends and mining returns, and these problems have existed for many days. As a result, a large number of users have already been through operations such as buying and selling various currencies and withdrawing cash, causing the pollution of assets.”
The platform was suspended a few days ago by its own account for risk control, which caused a lot of speculation that the project was shutting down and the operators are vanishing. In the last few sentences on his blog post, however, Zhang said that he will do everything to give back the money to users via email personally - and compensate FCoin user losses with the profits he would make from other projects.
`
Continue Reading

Bitcoin Scams

Bitcoin Robbery: 5 Biggest BTC Scams In History

Published

on

By

bitcoin robbery
The term Bitcoin robbery is used by a lot of people who have been scammed to show how much Bitcoin (BTC) they lost, how they felt etc. In today's crypto news, we are listing the biggest Bitcoin scams and report the top cases where most BTC was stolen from users. Bitcoin hackers stealing $500,000 in 2011 In early 2011, a Bitcoin Talk forum user with a nickname @allinvain made over 25,000 BTC from mining. This was a period when BTC was at $20 which made his Bitcoins worth around $500,000. Then, on June 13, he woke up to see a huge chunk of his Balance gone. The Bitcoin robbery victim could have around $250 million right now. Hackers bring down the world's (then) largest exchange A Russian named Alexander Vinnik owned Bitcoin exchange called BTC-e. Even though the law enforcement officials alleged that he knowingly accepted stolen Bitcoins from Mt. Gox - the case went viral in the Bitcoin news then. 'Bitcoin Savings And Trust' Scheme Was Shut Down The Bitcoin Savings And Trust was a classic Ponzi scheme which lured customers with a promise of high returns. Many described it as a Bitcoin robbery and the scheme finally shut down in August 2012 and a year later, the government indicted the main guy behind it - Tendon Shavers. Bitfloor suffers a catastrophic attack and loses 24,000 Bitcoins The Bitfloor exchange was the target of a Bitcoin robbery in September 2012, saying goodbye to more than 24,000 Bitcoins which were then worth around $250,000. The exchange did not have that much BTC in reserve so it was made insolvent by this theft. Even though it resumed its operations a week later, the effort was unsuccessful and the exchange closed its doors for good in April 2013. A major exchange loses 120,000 in BTC to hackers In August 2016, the Bitcoin exchange Bitfinex announced that it lost $77 million worth of Bitcoins in a Bitcoin robbery organized by multiple hackers. The company foisted the costs on to users and forced them to take a 36% reduction in the value of their deposits. This has been one of the biggest Bitcoin scams up to date. If you want to get more information on the latest Bitcoin robberies, keep on reading our blog!
`
Continue Reading

Bitcoin Scams

Altsbit Crypto Exchange Suffers Hack Attack, Lost 95% Of Funds

Published

on

By

Altsbit
The Altsbit crypto exchange based in Italy was the latest to suffer a bitcoin robbery or a hack attack with its hot wallet being completely emptied by cybercriminals. In our latest crypto news, we take a closer look at what exactly happened. Altsbit announced the news of the hack in a tweet that was published on Thursday and the announcement read:
‘’Unfortunately, we have to notify you with the fact that our exchange was hacked during the night and almost all funds from BTC, ETH, ARRR and VRSC were stolen. A small part of the funds are safe on cold wallets.’’
From the announcement, it seems that Altbits had almost all of the funds on the hot wallets despite their major vulnerability to malicious cyber intrusions. The Italian crypto exchange will provide a full report on the lost funds soon and we will be able to see exactly how big of damage the theft made. In the follow-up tweets of the exchange, however, can be seen that the hackers stole 1,066 Komodo tokens and 283,375 Verus coins. This combined the value of both stolen cryptos stands at about $27,000. At press time, Altsbit had a 24-hour trading volume of $14.8 million with 98% of its trading activity coming from the ARRR/BTC pair which is the native token of the pirate Chain. Reacting to the news of the hack, some of the supporters of decentralized exchanges noted the vulnerabilities of the platforms that are centralized. However, centralized platforms still command the grater trading volume as the DEX services have a notoriously hard way of navigating the user interfaces. As for the security situation with centralized crypto exchange platforms, the 2020 crypto crime reports by Chainlink show that the exchanges seem to be better equipped to deal with the hackers. Despite the increase in the number of hack attacks, the blockchain analysis firm explained that the total amount of stolen funds in the hacks declined dramatically from the previous year. One of the important strategies that exchanges use is to limit their hot wallet holdings and this will show any inside involvement since the hackers are less sable to drain the vast crypto sums from vulnerable hot wallets. The North Korean hack group Lazarus, is suspected of being behind most of the crypto exchanges in the Asian Pacific and now it seems that it is changing its attack vectors. The group utilizes phishing malware on popular messaging platforms such as Telegram.
`
Continue Reading

Bitcoin Scams

Adobe Flash Malware Posing As ‘New Update’ Found In 1 In 10 Macs

Published

on

By

adobe flash malware
The Shlayer malware is in the focus of the crypto news around the globe as one of the recent scams circulating in the sphere. However, this Adobe Flash malware is nothing new - it was developed two years ago and discovered at the same time when it infected Mac computers. The malware seems to be in the focus again and a report showed that 1 in 10 Macs have had it in the past. The recently published full report from the Russian security outfit Kaspersky details that there are around 32,000 unique variants of Shlayer which account for a staggering 30% of all malware detected by the company's Mac antivirus products. What is perhaps more stunning in the news is that the Adobe Flash malware was the most commonly encountered Mac malware of 2019 - and that it was seen at least once by 10% of users of Kaspersky's Mac anti-virus products. This leads us to the fact that one in ten macOS users have been hit by Shlayer as the Adobe Flash malware that is deadly. One caveat, however, is the fact that many Mac users are still not running any anti-virus solutions. That said, the numbers can be even higher and Kaspersky's data is skewed because it is gathered from Mac users who actually chose to run security software (and thus considered themselves more at risk). Alternatively, it could mean that Kaspersky is "under-reporting" the true level of Shlayer activity because there is no insight on the computers which are not running an anti-virus. The Adobe Flash malware has been distribute via websites claiming to offer a live stream of a soccer match, software cracks or pirated episodes of popular TV shows. This is how the malware got in the Bitcoin news - and how unsuspecting users might have been directed to the sites and infected with it.
“These links were not added by the cybercriminals themselves: we found that all those malicious domains had recently expired, and, judging by the WHOIS data, they now belong to a single individual. On the websites, the newly minted owner posted a malicious script that redirects users to Shlayer download landing pages. There are already over 700 such domains in total," the report by Kaspersky read.
We advise all Mac users to run an up-to-date anti-virus program and detect for viruses such as the Adobe Flash malware before it is too late.
`
Continue Reading

Newsletter

For Updates & Exclusive Offers
enter your email below





NEWS CATEGORIES

ADVERTISEMENT

cryptocurrency review
FO5F93F47156 - Chinese Ponzi Scheme Caused The Latest Bitcoin Sell-Off

ADVERTISEMENT

Medium Rectangle 300 200 2 Animated - Chinese Ponzi Scheme Caused The Latest Bitcoin Sell-Off

ADVERTISEMENT

oasistrade banner

ADVERTISEMENT

300 250 - Chinese Ponzi Scheme Caused The Latest Bitcoin Sell-Off
FO710FC3F2305 1 - Chinese Ponzi Scheme Caused The Latest Bitcoin Sell-Off

ADVERTISEMENT

300 600 3 - Chinese Ponzi Scheme Caused The Latest Bitcoin Sell-Off

Trending Worldwide