#crypto Ponzi scheme refund

[lionsgatenetwork]

With the rise of wealth and innovation as a result of the introduction of crypto, fraud also flourishes—for instance, the most damaging scam to date is the crypto Ponzi scheme. Investors cannot know what is happening behind the curtains when one promises them an almost impossible return.

[ailtrahq]

Popular crypto social platform Friend.tech was hit with a series of SIM swap attacks over the weekend, allowing hackers to drain thousands of dollars worth of tokens from users’ accounts. In an Oct. 3 Twitter thread, Daren (Twitter handle @darengb), a Friend.tech user with a publicly-known real name — “doxxed” in cryptospeak — wrote that he was the victim of a SIM swap attack which enabled the hacker to sell the 34 keys he owned on the platform and exit scam on the keyholders. The attacker also sold off all the other keys Daren held and drained the 22 Ethereum (ETH) he held, worth around $36,250 as of press time. In an Oct. 4 update, Daren further highlighted that “the hacker still has access” to his Friend.Tech account despite him regaining control of his mobile phone number. He explained that the hacker has “exported [his] private key and/or are still logged in on their phone.” Daren explained that he started receiving frequent spam calls which caused him to silence his phone. This prevented him from seeing a text from his carrier, Verizon, notifying him that someone was trying to access his account. Within an hour, the hacker had successfully swapped his SIM and gained control of his Friend.Tech account and crypto wallet. Froggie.eth also fell victim to SIM swapping, with a loss of over 20 ETH worth $33,000 as of press time, according to a Sept. 30 post. Twitter user Dipper claims the same happened to him, with his account being compromised, the hacker then sold all the keys and moved the assets to another address. It is unclear whether sim swapping was involved. No idea how they could have compromised the wallet. Sorry to keyholders, if it was a big loss for you contact me and I’ll refund. Dipper SIM swap attacks allow hackers to take over a victim’s phone number by tricking mobile carriers into transferring the number to a SIM card controlled by the attacker. With access to the phone number, hackers can receive two-factor authentication (2FA) one-time passwords (OPTs) and use those to reset account passwords and fraudulently access accounts. Friend.tech itself was not compromised in this incident, however. The platform utilizes blockchain technology to let users purchase “keys” to private chat groups of influencers and content creators. Key prices increase as more users buy into a chat, incentivizing creators and providing potential returns for keyholders. While innovative, Friend.tech’s linking of users’ real-world identities with their crypto wallets leaves them vulnerable to hacking techniques, like SIM swapping. Users have called for increased security measures such as 2FA to prevent similar attacks going forward. The rapid growth of Friend.tech has exceeded even its founders’ expectations. The platform gained over 100,000 users within two weeks of launch in August 2023 and reportedly generated $25 million in its first month. However, the sustainability of its model has been called into question, with some critics likening the platform to that of a Ponzi scheme. Friend.tech allows influencers and creators to monetize their fanbase by selling access to private chat groups and exclusive content in exchange for crypto payments. While supporters see huge potential for driving mainstream adoption of social tokens and Web3, others point to similarities with patronage platforms like Patreon and worry the app’s speculative growth could lead to a rush to sell keys and then the platform ultimately collapsing.

[wafact]

Celsius to sell crypto platform amid Mashinsky court battle

Now-bankrupt Ponzi scheme Celsius Network has reached a deal with NovaWulf Digital Management LP to sell its crypto platform, in an ongoing bid to refund customers. Celsius must still seek the approval of bankruptcy court, as well as the blessing of the majority of its customers, before the deal can go through. If all goes to plan, users can expect a share of their trapped crypto on the platform…

[michaelbennettcrypto]

Hawaiian Woman Invests 401K Into Crypto Mining Ponzi Scheme, Hit With Restraining Order

A woman based in the United States island-state of Hawaii has lost nearly half of her entire life savings, in a crypto mining-related Ponzi scheme.

And while the woman is clearly the victim, she’s been hit with a temporary restraining order for voicing her concerns and attempting to retrieve the money that was stolen from her by scammers.

Investor Loses 401K Savings to Bitcoin Mining Ponzi Scheme

An investor based in Waipahu, Hawaii who cashed out half of the money in her 401k retirement fund to invest in two different Bitcoin mining operations, is now out more than $60,000 as a result of an investment scam.

Related Reading | Why This Developer of the Controversial HEX Cryptocurrency – Accused of Scam – Left

The woman claims that she made over a $60,000 investment into BitClub Network and USI Tech – two firms with ties to Bitcoin mining. These businesses claim that they used specialized computers designed to mine for the crypto asset, but instead were simply taking the from new investors to pay off older ones, in a typical Ponzi scheme.

The two companies were recommended to the woman by a close friend, who also eventually got burned in the scheme, however, it’s not clear if the initial friend was complicit in the scheme.

She made several attempts to receive a refund on her investment, but instead, the company was able to file a temporary restraining order against the woman, preventing her from furthering her case for a refund.

Deputy Prosecutor Scott Spallina says that this woman isn’t the only victim of cryptocurrency-related scams that have included a temporary restraining order, who claims has become a new pattern for perpetrators to hide behind. The deputy also claims that another investor has lost more than $100,000 from similar crimes in the area.

The woman claims that she doesn’t expect to get her money back, but wants to “see justice for what they had done.”

Crypto Crime Sees a Surge Following Bubble-Driven Visibility, Will It Ever Stop?

Cryptocurrency related crime has only increased since the asset class became widely known following the crypto bubble of 2017.

After this, cybercrime-related to crypto asset began to climb at an alarming rate, and is now regularly being used by hackers who install ransomware on the computers of unsuspecting individuals and businesses and then demand a ransom paid in cryptocurrency.

Related Reading | United States Regulators Begin Crack Down on Crypto and Bitcoin Crime

The emergence of crime related to crypto has caused US regulators to take a closer look at the asset class, and additional rules and regulations are expected to follow as the industry and market further develop.

Until it does, scams like these will likely continue to run rampant, giving the crypto market its wild west stigma.

The post Hawaiian Woman Invests 401K Into Crypto Mining Ponzi Scheme, Hit With Restraining Order appeared first on NewsBTC.

from Cryptocracken WP https://ift.tt/2Za1Y4W via IFTTT

[brettzjacksonblog]

Hawaiian Woman Invests 401K Into Crypto Mining Ponzi Scheme, Hit With Restraining Order

A woman based in the United States island-state of Hawaii has lost nearly half of her entire life savings, in a crypto mining-related Ponzi scheme.

And while the woman is clearly the victim, she’s been hit with a temporary restraining order for voicing her concerns and attempting to retrieve the money that was stolen from her by scammers.

Investor Loses 401K Savings to Bitcoin Mining Ponzi Scheme

An investor based in Waipahu, Hawaii who cashed out half of the money in her 401k retirement fund to invest in two different Bitcoin mining operations, is now out more than $60,000 as a result of an investment scam.

Related Reading | Why This Developer of the Controversial HEX Cryptocurrency – Accused of Scam – Left

The woman claims that she made over a $60,000 investment into BitClub Network and USI Tech – two firms with ties to Bitcoin mining. These businesses claim that they used specialized computers designed to mine for the crypto asset, but instead were simply taking the from new investors to pay off older ones, in a typical Ponzi scheme.

The two companies were recommended to the woman by a close friend, who also eventually got burned in the scheme, however, it’s not clear if the initial friend was complicit in the scheme.

She made several attempts to receive a refund on her investment, but instead, the company was able to file a temporary restraining order against the woman, preventing her from furthering her case for a refund.

Deputy Prosecutor Scott Spallina says that this woman isn’t the only victim of cryptocurrency-related scams that have included a temporary restraining order, who claims has become a new pattern for perpetrators to hide behind. The deputy also claims that another investor has lost more than $100,000 from similar crimes in the area.

The woman claims that she doesn’t expect to get her money back, but wants to “see justice for what they had done.”

Crypto Crime Sees a Surge Following Bubble-Driven Visibility, Will It Ever Stop?

Cryptocurrency related crime has only increased since the asset class became widely known following the crypto bubble of 2017.

After this, cybercrime-related to crypto asset began to climb at an alarming rate, and is now regularly being used by hackers who install ransomware on the computers of unsuspecting individuals and businesses and then demand a ransom paid in cryptocurrency.

Related Reading | United States Regulators Begin Crack Down on Crypto and Bitcoin Crime

The emergence of crime related to crypto has caused US regulators to take a closer look at the asset class, and additional rules and regulations are expected to follow as the industry and market further develop.

Until it does, scams like these will likely continue to run rampant, giving the crypto market its wild west stigma.

The post Hawaiian Woman Invests 401K Into Crypto Mining Ponzi Scheme, Hit With Restraining Order appeared first on NewsBTC.

from CryptoCracken SMFeed https://ift.tt/2Za1Y4W via IFTTT

[joshuajacksonlyblog]

Hawaiian Woman Invests 401K Into Crypto Mining Ponzi Scheme, Hit With Restraining Order

A woman based in the United States island-state of Hawaii has lost nearly half of her entire life savings, in a crypto mining-related Ponzi scheme.

And while the woman is clearly the victim, she’s been hit with a temporary restraining order for voicing her concerns and attempting to retrieve the money that was stolen from her by scammers.

Investor Loses 401K Savings to Bitcoin Mining Ponzi Scheme

An investor based in Waipahu, Hawaii who cashed out half of the money in her 401k retirement fund to invest in two different Bitcoin mining operations, is now out more than $60,000 as a result of an investment scam.

Related Reading | Why This Developer of the Controversial HEX Cryptocurrency – Accused of Scam – Left

The woman claims that she made over a $60,000 investment into BitClub Network and USI Tech – two firms with ties to Bitcoin mining. These businesses claim that they used specialized computers designed to mine for the crypto asset, but instead were simply taking the from new investors to pay off older ones, in a typical Ponzi scheme.

The two companies were recommended to the woman by a close friend, who also eventually got burned in the scheme, however, it’s not clear if the initial friend was complicit in the scheme.

She made several attempts to receive a refund on her investment, but instead, the company was able to file a temporary restraining order against the woman, preventing her from furthering her case for a refund.

Deputy Prosecutor Scott Spallina says that this woman isn’t the only victim of cryptocurrency-related scams that have included a temporary restraining order, who claims has become a new pattern for perpetrators to hide behind. The deputy also claims that another investor has lost more than $100,000 from similar crimes in the area.

The woman claims that she doesn’t expect to get her money back, but wants to “see justice for what they had done.”

Crypto Crime Sees a Surge Following Bubble-Driven Visibility, Will It Ever Stop?

Cryptocurrency related crime has only increased since the asset class became widely known following the crypto bubble of 2017.

After this, cybercrime-related to crypto asset began to climb at an alarming rate, and is now regularly being used by hackers who install ransomware on the computers of unsuspecting individuals and businesses and then demand a ransom paid in cryptocurrency.

Related Reading | United States Regulators Begin Crack Down on Crypto and Bitcoin Crime

The emergence of crime related to crypto has caused US regulators to take a closer look at the asset class, and additional rules and regulations are expected to follow as the industry and market further develop.

Until it does, scams like these will likely continue to run rampant, giving the crypto market its wild west stigma.

The post Hawaiian Woman Invests 401K Into Crypto Mining Ponzi Scheme, Hit With Restraining Order appeared first on NewsBTC.

from Cryptocracken Tumblr https://ift.tt/2Za1Y4W via IFTTT

[giottuss-blog]

Giottus – Another Big Digital Currency Trading Scam is about to Come

Summary: Cryptocurrency scams have been popular for a long time. Giottus is one of the fake crypto-based companies which make many false promises to the users.

Digital currencies are extremely complicated and a bit of confusing especially to the new users. As a result, many scammers get a chance to try their hands in making people fool and take a significant sum of money to their home.

Some of the most common crypto scams are phishing, ponzi and pyramid schemes, fake exchanges and wallets, as well as mining scams. In order to protect yourself against these cryptocurrency scams, it’s important for you to open your eyes before investing in the digital currency world.

Even today’s market is full of fake crypto-based companies, which have a plenty of ponzi schemes to offer. One false company that I know is Giottus, which is also on the same path and continues to take the money out of the pocket of digital coin traders.

They ensure you to help you out whether you have a plan to buy, sell or trade the digital coins. However, their services are very pathetic and useless. There is no chance of getting your money refunded in case if you decide later to invest somewhere else instead in the crypto world.

Their website is full of grammatically incorrect and error-filled content. Over in some area of the website, you can find out the plans and offers, which promise abnormally high returns.

You can also find out the negative reviews about this company over several websites. May be you would not be able to find them out since the company’s representatives are very smart and immediately initiate deleting such content in order to protect their company’s rapport.

This digital currency trading platform doesn’t have a team of skilled and knowledgeable professionals. The company maintains a huge list of fake employees over their website.

In addition to this, you will have to face with the unrealistic and rude behavior of their employees if you approach them in a search for the answers to any queries related to the investment in digital coins.

The KYC verification process of the company is very slow and you, in some cases, have to wait for 4-5 days to get your KYC verified in order to begin trading in the digital currency world. The poor quality security measures and bad quality testing makes it difficult for the users to enjoy a tension-free crypto trading experience.

No proper rules are followed for the transactions made through their digital trading platform. As a result, there is no chance to trust on their platform for stability and safe execution of orders.

They charge a hefty amount as the trading fees and their illiterate staff starts arguing with you in case if you inquire about any discrepancies related to the submission of wrong amount. The improper design of the website makes it difficult for the users to find out the information they are looking for.

Over the website, you are promised of buying, selling and trading Bitcoin (BCH), Ripple (XRP), Litecoin (LTC), Ethereum (ETH) and Bitcoin (BTC). But, on the real note, you will only be allowed to trade only 2 or 3 digital currency.  

[jacobhinkley]

Turcoin Ponzi Scheme Exposed, Founders Flee with Millions

Turkey’s so called “national” crypto, Turcoin, has turned out to be a classical example of a Ponzi scheme, local media reported. The founders of the “alternative” digital currency are believed to have fled the country with millions of dollars collected from defrauded investors. The company behind the Turkish token stopped distributing dividends earlier in June.  

Also read: Indian Ponzi Scheme-Funded Cryptocurrency Mine Raided by Police

‘National, Alternative, Rivaling Bitcoin’

Turcoin, presented as a “rival to the global virtual currency bitcoin,” has been exposed as just another Ponzi scheme, after the executives of the project suddenly disappeared, according to local press reports. The Turkish altcoin, advertised as a national alternative digital currency, was launched by the Istanbul-based company Hipper A.Ş. founded by Muhammed Satıroğlu and Sadun Kaya last year.

In what sounds like a familiar scenario, every new participant in the network was supposed to bring more revenue to the person who signed them up. And as it happens with most financial pyramids, Turcoin crumbled as soon as growth grounded to a halt amid rising suspicions.

Hipper hit the headlines in Turkey with a lavish gala organized to promote the cryptocurrency last year. The event was attended by many Turkish celebrities, Hürriyet recalls. The company has also reportedly given away about 20 luxurious cars to the token’s early adopters.

The project suddenly stopped paying bonuses in early June. Since then, desperate investors have been trying to reach its Istanbul office without much success. “I am ruined. I don’t know what to do,” a 38-year-old man, who bought Turcoins worth 560,000 TL, almost $120,000 USD, told the daily. Hipper’s website is still online, currently offering “Cloud mining rental services.”

Billion Turkish Liras – Gone?

According to Sabah, the executives of Hipper have left Turkey with 1 billion TL stolen from thousands of defrauded investors. Many of them were lured with promises of monthly incomes of 250 TL (~$52) in return for an investment of 1,500 TL (~$315), the newspaper reported. Angry members of the scheme have raided the company’s office in the northwestern province of Kocaeli after their calls remained unanswered.

“I was only a mediator. Our company, Hipper, does not even have a single dollar in the bank. All the money went to Sadun Kaya’s company in Cyprus,” Muhammed Satıroğlu, one of Hipper’s founders, told Hürriyet. The daily wrote that he owns 49 percent of the company that issued the Turcoins.

Muhammed Satıroğlu and Sadun Kaya

Satıroğlu has joined investors in filing a criminal complaint against his partner, Sadun Kaya, who is said to hold 51 percent of the Turkish company and is thought to have fled the country with 100 million TL (~$21 million) taken away from about 10,000 people, according to the numbers quoted by Hürriyet. Satıroğlu claims he has not stolen any money and promises to start refunding Turcoin investors as soon as Turkish authorities unfreeze his bank accounts.

Meanwhile, Sadun Kaya, who has reportedly left Turkey, maintains that not he but his partners embezzled most of the money. “Everyone is trying to put the blame on me,” he complained in a conversation with Sabah. Kaya is also chairing the administrative board of Anafis Inc., another company involved in the scheme.

Amidst conflicting reports about the size of the fraud, it’s unclear if Turcoin will turn out to be the country’s biggest Ponzi scheme. The record holder for now, according to the online outlet Ahval, was revealed in March, when authorities in the northwestern province of Sakarya launched an investigation against Çiftlik Bank. Its 26-year-old founder Mehmet Aydın fled to Uruguay after reportedly collecting more than 500 million TL (~$128 million USD) from some 78,000 people in just two years.

Do you think authorities should take measures to prevent obvious Ponzi schemes? Share your thoughts on the subject in the comments section below.

Images courtesy of Shutterstock, Ahval, Turcoin.

Bitcoin News is growing fast. To reach our global audience, send us a news tip or submit a press release. Let’s work together to help inform the citizens of Earth (and beyond) about this new, important and amazing information network that is Bitcoin.

The post Turcoin Ponzi Scheme Exposed, Founders Flee with Millions appeared first on Bitcoin News.

Turcoin Ponzi Scheme Exposed, Founders Flee with Millions published first on https://medium.com/@smartoptions

[lionsgatenetwork]

With the rise of wealth and innovation as a result of the introduction of crypto, fraud also flourishes—for instance, the most damaging scam to date is the crypto Ponzi scheme. Investors cannot know what is happening behind the curtains when one promises them an almost impossible return.

[thepause]

SEC Sues 5 Over Bitconnect Ponzi Case | First Mover - CoinDesk TV

SEC Sues 5 Over Bitconnect Ponzi Case | First Mover – CoinDesk TV

The SEC has filed a complaint against five Bitconnect promoters over $2 billion in unregistered assets. Lisa Braganca, attorney and former SEC branch chief, joins "First Mover" and explains the 2018 downfall of Bitconnect and whether the defendants' actions constitute a Ponzi scheme. #cryptocurrency #digitalfinance #finance #bitcoin #crypto Subscribe to CoinDesk on…

[armandj]

Scotiabank CFTC Settlement, MTI FSCA Investigation: Editor’s Decide

With Summer time holidays underway and in a gentle week for information, let’s check out the tales that dominated the foreign exchange, fintech, and crypto headlines, in our greatest of the week section.

CFTC Settles with Scotiabank for $127M for Regulatory Violations

As Finance Magnates reported this week, the US Commodity Futures Buying and selling Fee (CFTC) introduced on Wednesday the settlement of two separate enforcement actions in opposition to the Financial institution of Nova Scotia (BNS), working as Scotiabank, for a complete fantastic of $127.four million.

The regulator charged the provisionally registered swap seller for spoofing and violations of swap seller compliances. It additionally discovered the corporate making false statements to cowl up each allegations.

Learn extra on the Scotiabank CFTC Settlement right here.

South African Regulator Asks MTI Shoppers to Urgently Withdraw Funds

South African regulator the Monetary Sector Conduct Authority (FSCA) has initiated an investigation in opposition to the actions of Mirror Buying and selling Worldwide for a number of operational considerations and urged its purchasers to “request refunds into their very own accounts as quickly as potential.”

The FSCA is anxious concerning the cryptocurrency buying and selling firm’s claims of holding 2.9 billion rands (over $168.eight million) in its purchasers’ buying and selling accounts because the regulator couldn’t verify the existence of the funds.

The platform was additionally flagged by the US and Canadian watchdogs.

Learn extra on the Mirror Buying and selling Worldwide (MTI) FSCA Investigation right here

Might the US Postal Service’s Blockchain Be Constructed on the Ethereum Community?

The USA Postal Service (USPS) has filed a patent for a blockchain-based mail-in voting system, in response to documentation revealed on the US Patent and Trademark Workplace web site late final week. A paragraph within the submitting notes that the blockchain platform may very well be based mostly on “the Ethereum open software program platform or different comparable platforms,” although there isn’t a affirmation that the platform might be constructed in any respect.

In a Finance Magnates evaluation, we delved deeper into the topic and checked out how viable the proposition of blockchain within the USPS ecosystem actually is.

Learn extra on USPS and Blockchain right here

Plus500 Turns into Primary Sponsor of Italy’s Atalanta B.C. Soccer Crew

Plus500 introduced one more sports activities sponsorship this Wednesday, with the London listed dealer revealing that it has signed an settlement with Italian soccer workforce Atalanta Bergamasca Calcio to grow to be its sole and unique sponsor.

Underneath the settlement introduced as we speak, Plus500 would be the principal sponsor for Atalanta B.C. for 3 years commencing on the first of September 2020. That is the third sports activities sponsorship introduced by the Israel-based dealer this 12 months, with the final one introduced lower than two weeks in the past.

As the principle sponsor, Plus500’s emblem will seem on the entrance of the Atalanta B.C. jersey for each nationwide and worldwide video games. Moreover, the net CFD buying and selling supplier can have entry to branding rights.

Learn extra on the Plus500 Atalanta Deal right here.

US Regulators Cost AirBit Membership For Working Crypto Mining Rip-off

US authorities this week asserted that AirBit Membership has been promoting unlawful funding schemes in addition to claiming passive, assured every day returns that can not be verified.

The DoJ named defendants on this case as Pablo Renato Rodriguez, Gutemberg Dos Santos, Scott Hughes, Cecilia Millan, And Jackie Aguilar. The compliant recognized dos Santos and Rodriguez as founders of AirBit Membership. The pair are serial scammers that have been fined $1.four million three years in the past for working one other Ponzi scheme referred to as “Vizinova.”

Learn extra on the AirBit Membership Prices right here.

Binance-Owned Crypto Playing cards Supplier Swipe to Launch within the US

Swipe, a digital asset pockets and debit card platform, has simply introduced that it’ll quickly be launching its providers within the US with plans to increase elsewhere within the nation after receiving the mandatory regulatory sign-offs.

The information comes a couple of weeks after Swipe’s takeover by Binance and issuance of a Swipe-powered crypto debit card, branded to the influential crypto change.

Swipe is already obtainable in 31 nations, largely within the European Union.

Learn extra on the Swipe US launch right here.

Sumitomo Mitsui Monetary Group Takes 14% Stake in SBI R3 Japan

As Finance Magnates lined this week, the Sumitomo Mitsui Monetary Group, Inc. has bought a 14 p.c stake within the three way partnership between SBI Holdings and blockchain expertise supplier R3 Holdo LLC, SBI R3 Japan Co., Ltd.

In a press release from SBI Holdings on Monday, the corporate revealed that the three way partnership has signed a Share Buy Settlement and accomplished the switch of 14 p.c of its firm shares to Sumitomo Mitsui.

Learn extra on the Sumitomo Mitsui Monetary Group Stake in SBI R3 Japan

Unique: FX & CFD Dealer Zenfinex Raises £5m in Sequence A Funding Spherical

There’s about to be plenty of adjustments for international change and contracts for distinction dealer Zenfinex Restricted, with the corporate revealing completely to Finance Magnates that it has lately accomplished a Sequence A funding spherical, elevating £5 million.

Zenfinex, which is presently regulated by the Monetary Conduct Authority (FCA), will put the money raised through the funding spherical in direction of its world operations. As such, purchasers can count on plenty of adjustments on the horizon for the buying and selling supplier.

Finance Magnates can verify that these adjustments embody geographical growth throughout Asia, the Center East and additional all through Europe, in addition to the growth of its product providing. Main the current funding spherical was Zenfinex Applied sciences Restricted which is headed by Oscar Hilt Tatum IV.

Learn extra on the most recent Zenfinex developments right here.

  source https://www.financeary.com/forex/scotiabank-cftc-settlement-mti-fsca-investigation-editors-decide.html

[coin-news-blog]

Understanding Transaction Fee Mining and its Changes

New Post has been published on https://coinmakers.tech/markets/understanding-transaction-fee-mining-and-its-changes

Understanding Transaction Fee Mining and its Changes

Since its introduction into the cryptoasset markets, transaction fee mining and the exchanges that support this model have been regarded with suspicion. However, it appears that the tide might be turning as some exchanges are reworking the model.

In this article, you will learn about the concept of transaction fee mining, its history, the exchanges that employ it, and recent changes.

What is transaction fee mining?

In Q1 and Q2/2018, the digital asset market witnessed a curious new development. A number of exchanges were exhibiting sudden increases in trading volumes. The changes in trading volume happened over a relatively short period and resulted in the affected cryptocurrency exchanges climbing up the rankings on cryptoasset data platforms such as CoinMarketCap. The exchanges involved in the market movements were BitForex, FCoin, CoineEx, CoinBene, and Coinsuper.

According to research published by Hacken, a cybersecurity firm with a focus on the digital asset sector, the sudden growth in trading volumes on these exchanges was due to the adoption of a new model called transaction fee mining. Also referred to as trans-fee mining, the new model drew heavy criticism from many corners of the market with a number of thought leaders and crypto-focused publications even likening it to a Ponzi scheme.

Watch the latest reports by Block TV.

To understand what transaction fee mining refers to, it is important to first understand the model that the majority of cryptocurrency exchanges utilize. When traders execute a trade on an exchange, they are charged a fee. These fees will form the bulk of the profit generated by the exchange. In contrast, for exchanges running the trans-fee mining model, users are refunded the fees levied on their trades in the exchange’s token.

Why the backlash?

Now, exchange tokens are hardly a new idea. Binance was the first digital asset trading platform to launch its own native digital asset, Binance coin (BNB). Following the success BNB witnessed, a number of exchanges adopted the concept, making a few amendments to birth the transaction fee mining model.

FCoin, a Chinese exchange, is credited as the pioneer of the trans-fee mining model. FCoin made headlines when it began promising customers 100% of their transaction fees reimbursed in the form of its native FT token.

Similar to exchange tokens, the trans-fee mining model also confers users with greater rights as they accumulate the platform’s native token. However, because the exchanges will reimburse users the fees charged on their transactions, customers have a greater incentive to trade on platforms supporting this model. Customers typically flock to these platforms to accumulate the native asset and either sell it immediately to turn a profit or keep it in anticipation of future price appreciation.

The controversy around trans-fee mining is centered around the fact that the model is believed to incentivize dishonest activity. In theory, customers would prefer to trade on exchanges running the trans-fee model, because it is essentially a cost-free. However, because they earn money per trade, customers are more likely to collude and participate in wash trading to increase their earnings.

For exchanges, the incentive for dishonest activity is even greater. Trading platforms typically charge listing fees for the tokens of new projects. These fees are generally structured in proportion to trading volumes. Therefore, the greater the number of people trading on the exchange, the more they can charge a project looking to be supported by the platform. In other words, the larger the trading volume, the more fees the exchange stands to earn. As a result, they are incentivized to manipulate trading volumes. According to the Hacken report, this was determined to be happening in some of the exchanges running the trans-fee mining model during the 2018 controversy.

Additionally, other exchanges have criticized platforms running the trans-fee model because it bypasses the long-winded and complicated initial coin offering (ICO) process, avoiding regulatory and related concerns, while still gleaning the benefits.

Changpeng Zhao, Binance CEO, is quoted saying: “You use BTC or ETH to pay for the transaction fee to the exchange, where it pays you back 100% via the exchange tokens. Isn’t it the same with using BTC or ETH to buy the exchange tokens? What’s the difference between this and an ICO?”

Unfortunately, as trading volumes die down following the initial launch period, customers are generally left holding valueless assets.

Changing perceptions

On April 30, 2019, FCoin announced it was reworking its trans-fee mining model. Taking into account the criticism the model has drawn in the past, the exchange introduced a number of changes designed to reduce the incentives for dishonest behavior.

FCoin calls the new approach the sustainable mining model. The new model will reimburse funds in the digital currency in which the trade was made. Additionally, “Only 20% of the eligible FT will be distributed daily. The remaining 80% of the FT distributed will be locked for 1 year with holders continuing to enjoy benefits or interests such as dividends and voting during the lockup period.”

These changes have been lauded across the cryptoasset market because they minimize the risks witnessed within the model while maximizing the benefits. Su Zhu, CEO of Three Arrows Capital stated: “Interesting how trans-fee exchange mining went from being a pump and dump concept in 2018 to an effective incentive mechanism in 2019.”

However, it remains to be seen how the rest of the trans-fee mining exchanges will respond to FCoin’s new approach. What is clear, however, is that the crypto market continues to show signs of maturity with every year.

Source: cryptonews.com

[bitcoingape]

Move Funds When An Exchange Show These Bad Signs

New Post has been published on https://bitcoingape.com/move-funds-when-an-exchange-show-these-bad-signs/

Move Funds When An Exchange Show These Bad Signs

A study from Statis Group an ICO advisory company reveals that 80 percent of all 2017 initial coin offering were scams. Of the over $11.9 billion floated in that year in tokens and coins, a massive $1.34 billion of it, was lost. 

The scam of the year was Pincoin’s, getting away with $660 million digital assets, followed by Arisebank with $600 million. The comfort here though is that this massive number of scams received only 11 percent of the funds directed to ICOs.

As the cryptocurrency market thrives, so have the con artists, feeding off the lack of education on cryptocurrencies or taking advantage of good old trader’s greed.  There is still no silver bullet for this fraud, but there are red flags investors can watch out for, that show that things are bound to go south.

Red Flag #1: Faking Volumes of Trade

The Blockchain Transparency Institute is questioning up-to 87 percent transactions done on 25 top global crypto exchanges. Known as ‘wash trading’ trading platforms are embellishing their trading volumes to market their selling power. CoVenture, in a report, says wash trading is “when a trader/s places a buy and sell order at an identical price without changing ownership of the underlying asset. They use bots to automate these orders leading to an artificially increased volume. This gives unsuspecting traders the illusion of liquidity.”

1/ New Research from us @BitwiseInvest.

As part of 226 slides presented to the SEC on our ETF filing, we did a first-of-its-kind analysis of *order book data* from all 81 exchanges reporting >$1M in BTC volume on CMC.

TLDR: 95% of reported volume is fake but LOTS of good news! pic.twitter.com/TuXLlDCRyP

— Bitwise (@BitwiseInvest) March 22, 2019

Read: Upbit Denies Cryptocurrency Wash Trading Accusations

They use this false image to charge $50,000 or more to coin networks who are falling over themselves to list their assets on these faked volume platforms. The other advantage that they seek by presenting this fake persona is getting fantastic listings on good sites like CoinMarketCap.

Coinmarketcap.com’s intelligence shows that it is only 2 out of the 25 crypto exchanges listed on their site are free of ‘wash trading.’ Some have embellished their volumes by up to 70 percent. Upbit, the largest trading platform in South Korea for example, has executives accused of embellishing orders and records worth $226.2 billion. Others accused of wash trading is BitFinex. Investors who trade with these platforms often face a lack of liquidity when they want to withdraw their assets.

Red Flag #2: Stranger Than Fiction Hack Attacks

An exit scam can be defined as a thievery plot where blockchain startups collect money through ICOs, then vanish into thin air with it. Some of these exit scam thieves shut down their exchanges unceremoniously and use hack attacks as a cover up their nefarious activities.

MapleChange for example, one Sunday Morning in October 2018, took to Twitter making claims that “Due to a bug, some people have managed to withdraw all the funds from our exchange. We are extremely sorry that it has to come to an end like this. Until the investigation is over, we cannot refund anything”.  The loss in question was investor’s 913 BTC worth of assets.

First things I found about the scammer https://t.co/hecIHyNUHW. #Maplechange #scam $LMO $CCX pic.twitter.com/3EekfloSvQ

— maplechang'ed (@Maplechanged) October 28, 2018

The exchange aggravated the situation further by shutting its social media accounts and website “for investigative purposes.” However, with hindsight, the exchange owners always had poor communication strategies and paid little attention to the platform’s security. These are warning for any investor to get out!

Red Flag #3: A High Concentration of Digital Assets in One Wallet

The core idea behind cryptocurrencies is the promotion of decentralization. If an exchange has a massive amount of assets packed in a portfolio there is need to worry. This kind of grouping of assets allows for price manipulation and often is an invitation for hackers looking for a challenge.

That's sad. There are many solutions to split private keys or signing to achieve 3/5, 5/7 etc. Never neglect security.

Also, never have CEO carry private keys. Bad on many levels.

Personally, in good health and intent to live longer and prosper. Thx for asking. Stay #safu. https://t.co/4uPQnXNN2D

— CZ Binance (@cz_binance) February 2, 2019

Also Read: $190 Million in Crypto Possibly Lost at Canada’s QuadrigaCX Bitcoin (BTC) Exchange

Worse still, if there is no multi-sign capacity and exchange’s asset is under the control of one person, and then it’s time to take off.

Red Flag #4: Too Good To Be True Promises

There exist too many Ponzi schemes set up to defraud investors with promises of huge yields. They also scam investors by pushing high commission for every new investor they bring in. Scam artists in the cryptosphere use tricks like giveaways, bounties and airdrops to access funds and accounts belonging to investors.

 In the words of Ouriel Ohayon, an expert in cryptocurrencies “”Yes, you are in control of your own assets, but the price to pay is that you are in charge of your own security.” When the deal is too good, withdraw your funds.

The post Move Funds When An Exchange Show These Bad Signs appeared first on Ethereum World News.

Source link

[michaelbennettcrypto]

Vietnam: Startup Modern Tech Goes Dark After Taking $660 Million From Investors in Two ICOs

Ho Chi Minh City-based startup Modern Tech has gone dark after duping 32,000 people of an estimated VND 15 trillion ($660 million) in relation to two fake cryptocurrency projects and their initial coin offerings (ICOs).

On Sunday, dozens of disgruntled investors gathered in front of Modern Tech’s headquarters in the business district of Ho Chi Minh City carrying signs denouncing the company’s fraudulent activities and demanding refunds, reports local news outlet Tuoi Tre News.

The owner of the Vietnamreal building where the startup was headquartered told reporters that the company had cleared out its office about a month prior to the events.

Modern Tech had claimed to be the authorized Vietnamese representative of two cryptocurrencies, Ifan and Pincoin, and was responsible for conducting two ICOs on their behalf. The team, which was made up of seven Vietnamese nationals, held conferences in Hanoi, Ho Chi Minh City, and even remote areas to lure investors to their operation.

Ifan and Pincoin

Ifan — which Modern Tech claimed was created under Singaporean laws — was marketed as “the most advanced social network” for celebrities and artists, enabling them to better connect with their fans. Its native token was intended to be used for album downloads, live performances, ticket purchases, as well as merchandises and endorsements.

Pincoin — a project initiated in Dubai — was marketed simply as an “investment opportunity” promising up to 40% in monthly profit. It claimed to be overseen by the so-called PIN Foundation. Investors were told that the tokens they receive would see their value skyrocket once they hit the secondary market. Modern Tech also promised an 8% commission for every new member introduced.

Investors first began to grow suspicious when the startup stopped paying commissions in fiat currency, but digital coins. Because of this, investors could see the value of their investment rise on a daily basis, but were unable to actually withdraw anything in cash. They took to social media to lament, some claiming they had lost a fortune investing in the alleged Ponzi schemes.

Scams in the cryptocurrency space have become increasingly popular as criminals look to tap into the Bitcoin frenzy to lure investors into “the next big thing,” often promising absurdly high rates of return.

Earlier this month in India, self-proclaimed “cryptocurrency guru,” businessman, and crypto-entrepreneur Amit Bhardwaj was arrested for allegedly scamming investors out of $307 million in the state of Indian state of Maharashtra alone.

Bhardwaj, who was on the run for almost a year, was arrested at the Bangkok airport on April 4th, and later brought to Pune to face the trial. He is accused of cheating investors with Bitcoin-based Ponzi schemes. Officials involved in investigations told India Today that Bhardwaj’s alleged scam could run between $769 million and $2 billion.

Bhardwaj operated several ventures including GainBitcoin, GBMiners, MCAP, and GB21. His book Cryptocurrency for Beginners was promoted on social media by numerous Bollywood actors.

The post Vietnam: Startup Modern Tech Goes Dark After Taking $660 Million From Investors in Two ICOs appeared first on NewsBTC.

from Cryptocracken WP https://ift.tt/2GNsYRT via IFTTT

[brettzjacksonblog]

Vietnam: Startup Modern Tech Goes Dark After Taking $660 Million From Investors in Two ICOs

Ho Chi Minh City-based startup Modern Tech has gone dark after duping 32,000 people of an estimated VND 15 trillion ($660 million) in relation to two fake cryptocurrency projects and their initial coin offerings (ICOs).

On Sunday, dozens of disgruntled investors gathered in front of Modern Tech’s headquarters in the business district of Ho Chi Minh City carrying signs denouncing the company’s fraudulent activities and demanding refunds, reports local news outlet Tuoi Tre News.

The owner of the Vietnamreal building where the startup was headquartered told reporters that the company had cleared out its office about a month prior to the events.

Modern Tech had claimed to be the authorized Vietnamese representative of two cryptocurrencies, Ifan and Pincoin, and was responsible for conducting two ICOs on their behalf. The team, which was made up of seven Vietnamese nationals, held conferences in Hanoi, Ho Chi Minh City, and even remote areas to lure investors to their operation.

Ifan and Pincoin

Ifan — which Modern Tech claimed was created under Singaporean laws — was marketed as “the most advanced social network” for celebrities and artists, enabling them to better connect with their fans. Its native token was intended to be used for album downloads, live performances, ticket purchases, as well as merchandises and endorsements.

Pincoin — a project initiated in Dubai — was marketed simply as an “investment opportunity” promising up to 40% in monthly profit. It claimed to be overseen by the so-called PIN Foundation. Investors were told that the tokens they receive would see their value skyrocket once they hit the secondary market. Modern Tech also promised an 8% commission for every new member introduced.

Investors first began to grow suspicious when the startup stopped paying commissions in fiat currency, but digital coins. Because of this, investors could see the value of their investment rise on a daily basis, but were unable to actually withdraw anything in cash. They took to social media to lament, some claiming they had lost a fortune investing in the alleged Ponzi schemes.

Scams in the cryptocurrency space have become increasingly popular as criminals look to tap into the Bitcoin frenzy to lure investors into “the next big thing,” often promising absurdly high rates of return.

Earlier this month in India, self-proclaimed “cryptocurrency guru,” businessman, and crypto-entrepreneur Amit Bhardwaj was arrested for allegedly scamming investors out of $307 million in the state of Indian state of Maharashtra alone.

Bhardwaj, who was on the run for almost a year, was arrested at the Bangkok airport on April 4th, and later brought to Pune to face the trial. He is accused of cheating investors with Bitcoin-based Ponzi schemes. Officials involved in investigations told India Today that Bhardwaj’s alleged scam could run between $769 million and $2 billion.

Bhardwaj operated several ventures including GainBitcoin, GBMiners, MCAP, and GB21. His book Cryptocurrency for Beginners was promoted on social media by numerous Bollywood actors.

The post Vietnam: Startup Modern Tech Goes Dark After Taking $660 Million From Investors in Two ICOs appeared first on NewsBTC.

from CryptoCracken SMFeed https://ift.tt/2GNsYRT via IFTTT

[joshuajacksonlyblog]

Vietnam: Startup Modern Tech Goes Dark After Taking $660 Million From Investors in Two ICOs

Ho Chi Minh City-based startup Modern Tech has gone dark after duping 32,000 people of an estimated VND 15 trillion ($660 million) in relation to two fake cryptocurrency projects and their initial coin offerings (ICOs).

On Sunday, dozens of disgruntled investors gathered in front of Modern Tech’s headquarters in the business district of Ho Chi Minh City carrying signs denouncing the company’s fraudulent activities and demanding refunds, reports local news outlet Tuoi Tre News.

The owner of the Vietnamreal building where the startup was headquartered told reporters that the company had cleared out its office about a month prior to the events.

Modern Tech had claimed to be the authorized Vietnamese representative of two cryptocurrencies, Ifan and Pincoin, and was responsible for conducting two ICOs on their behalf. The team, which was made up of seven Vietnamese nationals, held conferences in Hanoi, Ho Chi Minh City, and even remote areas to lure investors to their operation.

Ifan and Pincoin

Ifan — which Modern Tech claimed was created under Singaporean laws — was marketed as “the most advanced social network” for celebrities and artists, enabling them to better connect with their fans. Its native token was intended to be used for album downloads, live performances, ticket purchases, as well as merchandises and endorsements.

Pincoin — a project initiated in Dubai — was marketed simply as an “investment opportunity” promising up to 40% in monthly profit. It claimed to be overseen by the so-called PIN Foundation. Investors were told that the tokens they receive would see their value skyrocket once they hit the secondary market. Modern Tech also promised an 8% commission for every new member introduced.

Investors first began to grow suspicious when the startup stopped paying commissions in fiat currency, but digital coins. Because of this, investors could see the value of their investment rise on a daily basis, but were unable to actually withdraw anything in cash. They took to social media to lament, some claiming they had lost a fortune investing in the alleged Ponzi schemes.

Scams in the cryptocurrency space have become increasingly popular as criminals look to tap into the Bitcoin frenzy to lure investors into “the next big thing,” often promising absurdly high rates of return.

Earlier this month in India, self-proclaimed “cryptocurrency guru,” businessman, and crypto-entrepreneur Amit Bhardwaj was arrested for allegedly scamming investors out of $307 million in the state of Indian state of Maharashtra alone.

Bhardwaj, who was on the run for almost a year, was arrested at the Bangkok airport on April 4th, and later brought to Pune to face the trial. He is accused of cheating investors with Bitcoin-based Ponzi schemes. Officials involved in investigations told India Today that Bhardwaj’s alleged scam could run between $769 million and $2 billion.

Bhardwaj operated several ventures including GainBitcoin, GBMiners, MCAP, and GB21. His book Cryptocurrency for Beginners was promoted on social media by numerous Bollywood actors.

The post Vietnam: Startup Modern Tech Goes Dark After Taking $660 Million From Investors in Two ICOs appeared first on NewsBTC.

from Cryptocracken Tumblr https://ift.tt/2GNsYRT via IFTTT