Popular Crypto Scams and Frauds of US
Introduction-
The rise in cryptocurrencies and crypto-related technologies has made a lot of changes in the world of finance and ITs. As cryptocurrencies gain popularity, the surety of scams and scammers increases. Millions and thousands of people around the globe have begun investing to increase their wealth and gain profits. Along with this, the crypto scams seem to be taking an urge and their potential threat is massive. A report from the FTC shows that since October 2020 consumers have lost more than $80 million by crypto scams only in the US, whereas a lot of scams remain unreported.
It is not surprising since the crypto criminals have been caught and justice was served to the victims throughout the world. The world’s largest cryptocurrency exchange, Binance, was ordered by the High Court of Justice in London to identify hackers and freeze their accounts after a victim lost the amount equals to $2.6 million in the second week of August. It was then considered as a hint to the crypto scammers all around the world that the judiciary is all ready to use its powers and forces in order to catch those scammers and take necessary actions.
Popular Crypto Scams-
There are numerous crypto scams all around the world and it is difficult to describe them all. Let us have a quick glance at the most popular crypto scams of the US and how the judiciary and various law enforcement agencies took charge of these crypto scammers in the US and cracked the cases-
- The owner of RG coins (Bulgarian bitcoin exchange) was suspected of his participation in a transnational online auction fraud. The amount worth $7 million out of 900 Americans was reported. He was then sentenced to federal prison for 121 months by the U.S. District Court in New York. Later on, it was known that he is the seventeenth member of his Romania-based fraud network to be convicted.
- A former Australian student was found guilty of securities fraud. It was part of a plea deal for operating a Ponzi scheme disguised as a crypto-based hedge fund in New York.
- The Florida cryptocurrency firm cheated investors for more than $36 million. It has also paid celebrities to promote and advertise its business. After which, the founder of this firm was sentenced to eight years in prison.
- A Swedish operator of Bitcoin fog was charged with operating a money transmitting business that was unlicensed and money transmission without a license. A charge of money laundering was also added to this. It handled over 1.2 million bitcoin transactions worth approximately $335 million. He was arrested at Los Angeles International Airport in April and in July, he was sentenced to 15 years in federal prison. The Bitcoin fog was labelled as the longest-running bitcoin money-laundering service.
Conclusion-
The relevant legal authorities and law enforcement agencies around the globe are continuously pursuing crypto crimes and cracking them. They are dedicatedly involved in returning the stolen or lost crypto to its rightful owner and arresting the crypto criminals and perpetrators. The crypto scammers can be very creative and can run for some time but they can’t hide from the eyes of the judiciary and legit authorities.
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