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The Word Fraud And Its Relationship With The Crypto Market

By January 13, 2023January 31st, 2023No Comments

One of the ways to attract users to these types of scams is by putting them in the mouths of people they trust or even those they admire. Read to get more info about this most reliable trading platform.

When it comes to digital scams, unfortunately, everything related to the digital market is affected, from purchases of goods and services to cryptographic negotiations; this usually happens anywhere in the world without distinction of any kind, it simply happens, and it is the point in favor of all those who are against cryptocurrencies.

Electronic commerce is open to any person, including shell companies, created with the simple motive of defrauding any number of people from legal tender.

The most notorious frauds using cryptocurrencies

From the moment Blockchain technology became known and installed, the emergence of digital currencies such as Ethereum, Cardano, Dogecoin, Tether, and Litecoin was relevant. At the same time, companies such as cryptocurrency trading platforms have also emerged.

It came back at the end of 2017; Centra Tech issued a fraudulent Initial Coin Offering ( ICO ) that raised 28 million euros.

The ease with which Internet scams tend to hide their objectives very well, reaching the point of advertising where famous artists and with a severe reputation are found, such as the case of Visa and MasterCard, where the boxer Floyd Mayweather was also hired.

In this case, a set of demands arose from the moment the project founders resigned, and that is where the whole problem is uncovered.

After an in-depth investigation by the US Securities and Exchange Commission where it was determined that the created project was based on misleading advertising to the point that its creator or CEO did not exist.

Once incarcerated, the fraud perpetrators were incarcerated to serve 65 years in jail.

Although many crimes have been generated that have acquired much more professional characteristics and with the ease of posing as accurate, today, many investors are prepared to overcome all these situations and identify them quickly.

It is interesting how at a specific moment, all those users of the Internet and the crypto-active market with bad intentions prepare to be able to use the trend and create their deceptive strategies.

To date, it is considered that cryptographic scams have obtained an amount that exceeds 2,600 million euros.

Worst of all, the scammers posed as Bill Gates and Elon Musk, with 20 million Twitter followers, claimed they were giving away cryptocurrency to celebrate the company’s new launches.

It is estimated that they created a network of some 15,000 fake account bots and that, with this method, they obtained more than 1.4 million euros.

The year 2019 marked many events in the cryptocurrency and blockchain ecosystem, such as the rise in the price of bitcoin or the controversy with Facebook’s announcement of its cryptocurrency, Libra, to China’s position regarding blockchain development.

One of the most notorious was those involved in the OneCoin scam facing justice in several countries. A company originated in Bulgaria.

Although the case dates back to before this year, it was in 2019 when multiple events aroused much more attention to the project undertaken by the so-called ” cryptoreine, “Ruja Ignatova, who has been missing since 2017.

Following in the footsteps of PlusToken, another one that caused a stir this year, PlusToken was born in China, a company that offered investments in various cryptocurrencies that would have defrauded police officers of at least USD 2.9 million. This figure occurred after the arrest of the founding members of the company last July.

Here’s a review of some of the most popular “crypto scams” of recent years.

  • Trendon Shavers runs the renowned Ponzi scheme from Bitcoin Savings & Trust, BST.
  • Mt. Gox was a bitcoin exchange based in Tokyo, Japan.
  • Bitconnect is another Ponzi scheme that defrauded more than $2 billion from investors in the United States and worldwide.
  • Arbistar 2.0. It is a case similar to Bitconnect; those affected could reach 32,000,
Jerico Saquing

Jerico Saquing

Jerico is the founder of Peso Hacks. He's also a freelance writer who specializes in topics related to finance, travel and games. In his spare time, he likes to watch anime, play mobile games and read books.

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