Posts Tagged ‘fraud’

The fintech ‘genius’ accused in $165m fraud

Shortly after the UK voted to leave the EU in 2016, WB21, which claimed to be a fintech company, announced it was upping sticks from London to Berlin. Its chief executive, Michael Gastauer, declared that the legal uncertainty of Brexit had driven his business to Germany. Last Wednesday, the US SEC unveiled a civil lawsuit […]

FINRA Takes Down HempCoin Cryptocurrency for Selling Unregistered Securities

The Financial Industry Regulatory Authority (FINRA) has issued its first cryptocurrency-related disciplinary action, charging Timothy Tilton Ayre, a broker in Agawam, MA., with securities fraud and the unlawful distribution of HempCoin, which the agency claims is an unregistered cryptocurrency security. FINFRA has accused Ayre of trying to entice people to invest in Rocky Mountain Ayre […]

How To Spot Fraudulent ICOs… And Avoid Them [ANALYSIS]

How can you tell if an ICO is a legitimate investment or a scam that just aims to steal your money? There are several things to look out for.  If you’re seriously considering a particular ICO right now, here are some questions you should be asking before handing over your cold, hard cash, based in […]

How not to lose money when buying tokens

Because of fraudsters, the crypto industry participants lose about $9 million daily. One of the riskiest areas for the investor is the purchase of tokens — digital assets of companies developing blockchain-based projects. But it’s difficult to frighten and stop token buyers. On average, investors who buy project tokens even at the stage of ICO can […]

Cryptocurrency fraud leads to £2 million worth of losses this summer

The UK’s national reporting centre for fraud and cyber crime Action Fraud has warned the public about fraudsters advertising ‘get rich quick’ investments to scam people out of money. The latest statistics from Action Fraud show that in June and July, victims reported losing £2,059,501.29 to cryptocurrency scams – an average of £10,095.59 per person. In the […]

Self-Advertised as Turkey’s ‘National Cryptocurrency,’ Turcoin Outed as Ponzi Scheme

Turcoin, advertised by its creators as Turkey’s “national” cryptocurrency, has been outed as a ponzi scheme. Istanbul-based company Hipper, whose partners Muhammed Satıroğlu and Sadun Kaya launched ‘Turcoin’ in 2017, is the subject of a criminal complaint after payouts to investors stopped in early June 2018. Turcoin promised to become Turkey’s “national cryptocurrency” upon its launch, […]

Tea Tokenizers Arrested in China for Alleged $47 Million Crypto Fraud

Police in Shenzhen, China, arrested six individuals who allegedly defrauded 3,000 Chinese investors out of $47 million by selling a cryptocurrency they claimed was backed by a commodity. The six suspects formed a firm based in Shenzhen called PEB, which beginning in January 2017 issued a blockchain-powered token dubbed Pu’er Coin. According to the police investigation, though […]

US regulator creates fake ICO to teach investors a lesson

The U.S. Securities and Exchange Commission (SEC) has come out with an ingenious way to guide prospective investors on looking for red flags on ICOs. The SEC recently launched an ICO web page to demonstrate potential investment victims what are the obvious signals of frauds and scams in connection with these investments. The spoof ICO […]

US Government to Submit ‘Oversized’ Argument in ICO Fraud Case

U.S. prosecutors are planning an «oversized» response to a motion to dismiss in an ongoing — and potentially precedent-setting — ICO fraud lawsuit. Maksim Zaslavskiy has been accused of committing securities fraud in connection with two ICOs, RECoin and Diamond Reserve Club World. In September of last year, the U.S. Securities and Exchange Commission filed suit, […]