Amit Bhardwaj, the face behind one of the most expensive Bitcoin Schemes, was granted bail by the Supreme Court of India. In our latest cryptocurrency news, we find out why the court brought this decision.
Bhardwaj is the founder of GainBitcoin and he was jailed after conducting a $300 million Ponzi scheme. According to his lawyer, Amit is suffering from kidney failure for a few months. He spent his days in a jail hospital in Delhi and his health is allegedly worsening. His health didn’t allow him to go to court hearings after 12 criminal cases were filed against him.
The Supreme Court heard Amit’s bail plea a week ago. The court ordered his lawyers to submit all of the medical records for the next hearing that happened yesterday. One of the lawyers, Prakash, provided a copy of the records from the Delhi-based Institute of Medical Sciences. The records show that Bhardwaj is going through a surgery in the next months for a kidney transplant.
The records also show that Bhardwaj’s kidneys initially functioned normally but got worse over time. Bhardwaj’s lawyers stated that he needs time to get his fitness and mental health back. The court eventually granted Amit a temporary break from prison.
However, the bail didn’t come for free. Bhardwaj had to deposit $1.5 million in bonds to get bail. Usually, people pay up to $100 in similar bail bonds for smaller crimes. A million dollar bail bond wanted to make sure that Bhardwaj will stay away from escaping.
Some of the other people involved in the Ponzi scheme also got bail. Bhardwaj’s brother Vivek Bhardwaj but also some friends including Rupesh Singh, Sanchit, Rajesh Jain and Sahil Baghla.
Sanchit was working as a business developer for the company got arrested on May 24. He was released from jail after a Chandigarh court granted him bail. Another developer at the GainBitcoin Company also received bail to allegedly attend the funeral of his father.
Bhardwaj’s scams harmed more than 6,000 investors in India for more than $300 million. He later offered to compensate the victims but they refused to take the money in cash, only in bitcoin.
BTC Wallet Electrum Is Facing Another DoS Attack
South Korea Ends $18 Million Crypto Ponzi Scheme With The Help Artificial Intelligence (AI)
“Through keywords such as Ponzi, loan and recruiting members, we were able to teach the AI patterns of Ponzi schemes. The program can also identify advertisement patterns and identified the enterprise in question, which [was caught] with evidence provided by an unnamed informant.”The CEOs of the scheme, known as Lee and Bae, amassed a lot of money through selling private digital tokens named M-Coin which posed to be a real altcoin, along with membership fees from recruits, as the publication states. The figures also took advantage of the public's lack of knowledge of the crypto space to part them from their fiat investments.
“In our stakeout, we saw that most people attending the swindler’s presentation for membership were elderly people in their 60s and 70s,” Hong Nam-ki added.Currently, Ponzi schemes still remain a persistent phenomenon despite the increasing legitimacy of cryptocurrency in the public eye. This is obviously not the first (or the last) crypto ponzi scheme that exists out there - and will hopefully not be the last to be spotted with the help of artificial intelligence (AI). Earlier this year, authorities caught up with the controllers of OneCoin which is a notorious international quasi-pyramid scheme which ran for several years.
Crypto Giant Coinbase Taps Into A $255 Million Customer Insurance Policy Program
"The data is clear that, today, the most likely consumer loss scenario for any cryptocurrency company is hot wallet loss due to hacking."Martin also touched on the possible scenarios and how Coinbase's insurance policies give customers peace of mind that the Bitcoin or altcoin savings they hold at the exchange is protected from losses.
“If the worst happens and Coinbase loses customer funds, customers deserve certainty that they will be made whole,” he wrote.According to experts, the worst case scenarios for losses in this manner break down to two categories: crime and specie. While crime covers losses caused by criminals who hack, steal and conduct fraud transfers, insider trading losses are also covered. On the other hand, the Specie coverage kicks in whenever there is a physical damage or theft or private key data in cold storage. As Martin explained:
“Crime policies would not generally cover the costs of incident response, PR costs, etc. Crime policies also don’t generally cover failures of the underlying currency (e.g. 51% attacks). Coverage for hot wallet exposures are also significantly more expensive than cover for cold storage alone.”He also had plenty to say about why is insurance important for crypto companies and what it should cover.
"Companies should focus on insurance for value in flight. This means that exchanges and wallets should have sufficient Crime coverage to fully cover their hot wallets (including enough buffer to handle asset price spikes)," Martin added.He concluded with a statement in which he said that Coinbase is working with regulators and insurers to create more insurance solutions in different areas.
Facebook Fraudsters Use Photos Of Celebs To Lure People Into BTC Investing
Crypto scams and frauds are always a hot topic for cryptocurrency news and in ours we have a case where fraudsters use photos of Australian TV celebrities, mainly hosts of popular TV shows in order to convince the people to invest in a bitcoin scam.
The funny thing is that the scam is taking place on one of the most popular social media platforms on the planet-Facebook. Con-artists create profiles that seem legitimate and successfully manage to trick people into investing.
Photos of TV presenters Karl Stefanovic and Waleed Aly were used in a fake news segment on a popular evening talk show The Project where both of the hosts discuss how much they are making by investing in bitcoin using Bitcoin Trader. After the fake Facebook profile pages were created, the scammers pay the platform to promote their posts so it reaches millions of people in order to maximize the views so the message gets spread out.
One sponsored post even stated:
‘’The Project co-host Waleed Aly was left in disbelief as Stefanovic pulled out his phone and showed viewers how much money he’s making through this new money-making program that now has everyone in Australia whispering.’’
There were also some falsified quotes by Stefanovic saying:
‘’It’s the single biggest opportunity I’ve seen in my entire lifetime to build a small fortune. I urge everyone to check this out before the banks shut it down.’’
After the fake and sponsored ads were reported to Facebook, the social media giant stated that the scam does not breach their terms or conditions that the complaint was ‘’rejected’’ after outlining that the advert featured on the platform was acceptable. The report goes on to explain the guidelines that the platform does not ‘’allow deceptive, false or misleading content, including deceptive claims, offers or business practices’’ and yet again Facebook did nothing.
The scammers posted the first ad on Facebook on Tuesday and people were led to invest minimum of $20 with a guaranteed 10 times bigger return.
Facebook crypto scams are increasing constantly it seems, since a couple of days ago a New York Fraudster was sentenced to 20 years in jail for a FB Crypto scam. Also, Jason Flack or better known as Patrick McDonnell was also a fraudster due to convincing others to invest in crypto via Facebook.
Join us on Facebook
- Thomas Lee: BTC Misery Index Has Never Been Reported During Bear Market
- Top Altcoins Record Losses, Bitcoin Drops Under $5,300 Again
- BTC Mining Becomes Profitable Once Again, Are The Bulls Back?
- War-Torn Afghanistan Aims To Improve Its Economy With Bitcoin
- Serena Williams Gold Medals Winner Invested In Crypto Exchange Coinbase
UPCOMING EVENTS RECOMMEND BY DC FORECASTS
Altcoin News4 days ago
Notre Dame Reconstruction Powered By Crypto Fundraising Campaign
Altcoin News4 days ago
LTC Price Can’t Keep The Pace Any Longer: Crypto Analyst
About3 days ago
The Real Satoshi Nakamoto To Be Revealed By John McAfee
Blockchain News4 days ago
Legal Blockchain Experts Are In High Demand: Report
Altcoin News2 days ago
Russia’s Central Bank Looks Into The Pros And Cons Of CBDC
Analysis3 days ago
Bitcoin (BTC) Price Holding Onto Crucial Support Levels: An Increase Is Likely
Altcoin News4 days ago
Tezos Price Rises By 10% Reaching A New Five-Month High
Altcoin News4 days ago
Coinbase Expands Its Crypto Offering To 11 More Countries