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Indian Police Uncover Cryptocurrency Scam Involving BitConnect Promoter

Indian police have reportedly discovered an alleged multi-million dollar cryptocurrency scam, involving a BitConnect promoter, local media outlet the Times of India reported on June 3.

The Criminal Investigation Department (CID) in Gujarat, India, has accused Divyesh Darji — a promoter of now-defunct cryptocurrency investment program BitConnect that ceased its operations in January of last year — of luring people to invest into “Regal Coin,” promising unrealistic returns of as high as 5,000% on investment. A CID official said that the estimated amount of the scam reaches into the tens of millions of rupees.

Per the CID, Darji began offering the investment scheme back in 2017, asking potential investors to buy the coin with an investment of $2 to get $100 on each Regal Coin. A CID official said that “Darji had promised that the investor would get the principal amount in 99 days. He had also promised to give interest on principal amount as per robotic trading profit along with 1% to 1.6% bonus as referral bonus at every 11 days.”

The scam was discovered after a Surat resident, Vishal Savalia approached the CID saying that he had lost around $26,783 in the Regal Coin scam. A CID official further explained that “Savalia had allegedly given the money to Darji’s daughter, Dimki through another accused and Darji’s aide, Ramdayal Purohit and Dimki herself had downloaded Regal Coin app in Savalia’s cellphone and get him registered on its website.”

According to the police, only Purohit is presently under arrest, while Darji was released on bail a month ago and is on the lam. This is reportedly the third case involving Darji.

At the end of August 2018, Indian police arrested Darji for allegedly promoting BitConnect and scamming investors. Darji reportedly said that he had been the India head of BitConnect. The CID claims that staff at the BitCoinnect office in Surat admitted that promoters had amassed “crores of rupees from thousands of investors.”

In February of this year, India’s Union Home Minister Rajnath Singh inaugurated the cyber forensic lab and Cyber Protection Awareness and Detection Centre, with a special unit focused on cryptocurrency.

Source: Pivot – Blockchain Community

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Crypto Dusting’ Attack Sends Illegally Obtained Bitcoin to Random Cryptocurrency Wallets

Crypto dusting attack, a hack on cryptocurrency wallets is used to distribute laundered money to the wallets of unsuspecting customers, which in turn, affects their reputation and draws the attention of law enforcement, reports DarkReading on January 8, 2019. According to DarkReading, crypto dusting is a new attack which distributes illegally obtained funds from an unknown source to the wallets of innocent cryptocurrency holders……

Source: ‘Crypto Dusting’ Attack Sends Illegally Obtained Bitcoin to Random Cryptocurrency Wallets

TokenSoft Expands Its Services Acquiring SEC-Registered Broker-Dealer

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TokenSoft, security tokens platform that focuses on the tokenization of traditional assets, has announced investing in a broker-dealer company registered with the Securities and Exchange Commission (SEC), now renamed as TokenSoft Global Markets, LLC. According to the press release, TokenSoft is now entitled to acquire 100% of TokenSoft Global Markets, subject to regulatory approval.

As a result of the deal, TokenSoft will enable issuers to choose whether to host a token sale themselves or work with a broker-dealer to manage the token sale on their behalf. As for the company being acquired, TokenSoft Global Markets will expand its range of services to custody solutions, referrals to exchanges, and private placements among others.

As the announcement states, those who choose to tap the expertise of a broker-dealer will be able to turn to TokenSoft Global Markets for guidance and hands-on support at every step of the sale process.

New Proposal Promises to Make Monero (XMR) Wallet Simpler

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One contributor to the Monero (XMR) project wants to reform the wallet’s GUI to account for the likelihood that some users may not be interested in the more technical details of running a full node and may instead want to just have a desktop computer program that accesses funds and handles transactions.

“The community has long stipulated that, in its current form, the GUI is not properly tailored to the less tech-savvy. I personally have acknowledged this particular issue and am therefore proposing to add a simple mode, which would be significantly better curtailed for the less tech-savvy,” wrote the contributor, who goes by the username dEBRUYNE-1.

The “simple mode” this person is proposing would remove options usually tailored for advanced users, such as the ability to select the testnet or stagenet of the Monero blockchain. Additional features, including one where advanced users could sign a transaction file in a cold storage wallet and broadcast it through a “hot” node that has view-only privileges, are also removed from the proposed mode.

Cardano Price Gains 17% on the Road to $0.05 Over the past 24 hours

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The Cardano price has gained nearly 18% in USD value. That pushes the price to $0.042 and change, which may very well become a new level of support for this altcoin moving forward. There is also a near 12% gain in the ADA/BTC ratio which should not be overlooked. It is pertinent for altcoins to note gains in BTC value while this uptrend remains in place…..Read more

Hackers steal an estimated $59m from Japanese crypto exchange Zaif – The Block

https://www.pivot.one/share/post/5c1ca8911d57e743859729c2?uid=5bd49f297d5fe7538e6111b6&invite_code=JTOJYV

Tokyo Police Shuts Down Cryptocurrency Pyramid Scam, Arrests 8 Men – Scott Jeffrey

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When investing in cryptocurrency it’s extremely important to be mindful of various scams that you could be targeted for. There are a number of individuals that are working to create scams that con people out of Bitcoins and other cryptocurrency. Because it’s quite easy to transfer crypto and because it could be difficult to receive a refund on cryptocurrency, it can be one of the perfect tools for the creation of financial scams.

A recent cryptocurrency pyramid scheme was highly successful in targeting around 6000 people internationally from a hub in Tokyo. Eight men were arrested and charged with stealing roughly $68.42 million in various cryptocurrencies.

The company that they were associated with was called Sener and they claimed to be an official United States investment firm. The company that they created was unregistered and they were collecting cryptocurrency from people to have it then reinvested at several levels of membership status. The group held a series of seminars and gatherings promising monthly returns of roughly 20% on any of the money invested through their system. Customers could receive a referral bonus for bringing in new investors to the system.

The company that they created was widely successful through their seminars as well as through a series of YouTube videos that were published on the subject of cyptocurrency investment with them. The group was able to work unimpeded over several months without for filling their promise and while operating illegally without registration.

Their practices would have continued if a lawsuit was not properly filed against them. A group of 73 of their members stepped forward to create a lawsuit in the Tokyo District Court. This group of individuals is seeking ¥370 million in damages for the funds that were taken from them in the illegal operation of this business.

There are a number of other members that bought into this company that have still yet to come forward or request any type of compensation for the scheme.

As news continues to spread about Sener, more of their victims are coming forward in an effort to seek damages. Because the company was not operating with a proper securities license it’s also quite possible that they will be unable to continue their operations in the United States as well as several other international locations.

When you are considering an investment in cryptocurrency or having your currency managed for investment is important to consider the validity of a company and its structure. If you are starting to see that there are levels of membership, ongoing referrals and an overall lack of publication on a company, this could represent a risky choice for your investment.

Asking the right questions such as whether a company is properly registered for the trade of securities can also help to make sure that they aren’t forcibly shut down in a hurry for operating illegally and that your money can remain safe in their hands.

 

 

 

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Colorado Securities Regulators Crack Down on Four More ICOs for Alleged Illicit Practices – Helen Partz

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The Colorado Division of Securities has filed cessation orders against four Initial Coin Offerings (ICOs) allegedly involved in fraudulent and illicit practices, according to an official announcement Nov. 20.

Colorado Securities Commissioner Gerald Rome issued the new cease and desist orders following investigations by the Division’s ICO Task Force. Rome has issued 18 cessation orders to ICO projects offering unregistered securities since May, 2018. According to the announcement, at least two more orders are still pending.

The recent orders affected four crypto and blockchain-related firms; Global Pay Net, Credits LLC, CrowdShare Mining, and CyberSmart Coin Invest. All the companies were reportedly accessible to Colorado residents and allegedly violated securities laws.

Regulators state that the projects also engaged in fraudulent marketing practices; Global Pay Net allegedly falsely claimed that “investors receive 80 percent of the company’s profits.” CrowdShare Mining promised an “at least 1,000 percent” four-year return on investment for investors who bought its token.

Commissioner Rome stated that the “sheer number” of cease and desist orders against ICOs should be a “red flag […] that there is a real risk that the ICO you are considering is a fraud.” Rome also highlighted the problem of crypto investor protection, claiming that fraudsters “simply create a fake ICO to steal investors’ money,” and “trick investors into wrongfully paying them.”

Earlier this month, the securities regulator issued cease and desist orders to four ICOs for allegedly offering unregistered securities.

On Nov. 19, Italian securities regulator Commissione Nazionale per le Società e la Borsa (CONSOB) issued enforcement actions against three crypto-related firms for alleged violation of local financial laws by failing to register as financial intermediaries.

That same day, the North Dakota Securities Commissioner issued a cease and desist order against an alleged Russia-based ICO that posed as Liechtenstein Union Bank.

According to a recent study by the University of British Columbia, ICOs face a “compliance trilemma” that limits their potential. Some issuers shirk compliance measures in order to “reach a distributed pool of investors” and have an offering that is “cost-effective.”

The study explains, “If issuers forgo these costs, the risk of being non-compliant rises significantly. The result is a trilemma, whereby issuers currently must forgo one of these goals to realize the other two, or to compromise on all three.”

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