The United States Federal Bureau of Investigation, known as the FBI, is in the daily cryptocurrency news because of an interview in which a spokesperson outlined the key features of the consistent threads running through fraudulent initial coin offering (ICO) schemes. FBI’s perspective was first shared in an interview with the Netherlands-based financial news site the Paypers on February 19th.
As the FBI noted, the key strategies of scam artists in crypto include misrepresentations of their directors’ professional experience, which is an engineered false impression of how much traction the ICO has garnered in the industry and the unrealistic promises of prospective returns of its tokens.
“Like any investment product, rates of return can never be guaranteed and if it sounds too good to be true, it probably is.”
The FBI also warned investors to conduct due diligence on all schemes and the individuals behind it – as well as to always be on the lookout for entities that appear to be exclusively internet-based where a physical address or any contact is hard or impossible to come by.
The Bureau also suggested that investors should be aware of which jurisdiction the offering is registered in (if it is at all), as well as to which laws and regulations it falls subject to. FBI advised that the public can use the Financial Industry Regulatory Authority’s BrokerCheck system to verify the identities and registration status of entities.
Crypto And Forex Scams Got Away With $34 Million In 2018: UK Report
“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.
Investor Sues OneCoin Scheme Seeking Class Action
Binance Bitcoin Scam: Hackers Steal 7,000 BTC In Security Breach
“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.
Join us on Facebook
- Cryptopia Hackers Are Moving The Funds In At Least Four Wallets
- IRS Crypto Tax Guidance Is Coming Soon: Official News
- Zimbabwe Stock Exchange Interested In Adopting Blockchain Technology
- Crypto And Forex Scams Got Away With $34 Million In 2018: UK Report
- SEC Postpones VanEck ETF Application Verdict – Again
UPCOMING EVENTS RECOMMEND BY DC FORECASTS
Altcoin News3 days ago
Facebook’s Cryptocurrency Network Launched In Switzerland
Blockchain News4 days ago
Cryptopia Crypto Exchange Might Not Be Able To Refund Its Customers
Regulation5 days ago
Regulating Cryptocurrencies Is Not A Priority: Russian PM
Regulation2 days ago
Crypto Regulation In Japan: The Measures G20 Wants To Impose
Blockchain News4 days ago
Blockchain Bonds Officially Launched By CommBank And World Bank
Litecoin News3 days ago
Litecoin (LTC) Price Analysis: It Needs To Be Above $87 For Bullish Outlook
Bitcoin News3 days ago
European Central Bank: Bitcoin Is Not A Threat But It Needs Monitoring
Altcoin News4 days ago
Biggest Crypto Dump: $32 Billion Wiped Away Overnight