Tag: Bitcoin Scams

Leaders of South Korean Crypto Exchange Komid Jailed for Faking Volume: Local Media

Leaders of South Korean Crypto Exchange Komid Jailed for Faking Volume: Local Media

COINTELEGRAPH, CRYPTOCURRENCY
Two leaders of the South Korean cryptocurrency exchange Komid were reportedly sentenced to serve jail time for faking exchange volumes, Korean crypto media outlet blockinpress reports on Jan. 18.The exchange’s CEO, surnamed Choi, received a three-year sentence, while another company leader with an unspecified role was purportedly sentenced to two years imprisonment for fraud, embezzlement and misconduct, the article notes.The charges reportedly outline a scheme where the exchange faked 5 million transactions in order to inflate the volume, which reportedly earned them $45 million. It is also suspected that the company used a bot to automatically create large orders and attract new users. The article quotes the judge saying:“Choi has committed fraud for a countless number of victims for a l
Crypto Investor Names Primary Suspect in $24 Million SIM Swapping Case

Crypto Investor Names Primary Suspect in $24 Million SIM Swapping Case

COINTELEGRAPH, CRYPTOCURRENCY
A 21-year old American has been accused of stealing millions of dollars in crypto via a method known as SIM swapping, according to a press release shared with Cointelegraph Jan. 17.As reported, plaintiff Michael Terpin — a long-time blockchain and crypto investor — first filed a lawsuit against AT&T last August, accusing the firm of negligence that allegedly allowed the suspect to gain control over Terpin’s phone number and steal almost $24 million worth of crypto.SIM-swapping — also known as a “port-out scam” — involves the theft of a cell phone number in order to hijack online financial and social media accounts, enabled by the fact that many firms use automated messages or phone calls to handle customer authentication.According to Terpin's declaration, which was filed with the Unite
New Zealand Police Confirm Investigation Into Alleged $3.6 Million Hack of Cryptopia

New Zealand Police Confirm Investigation Into Alleged $3.6 Million Hack of Cryptopia

COINTELEGRAPH, CRYPTOCURRENCY
Police in New Zealand confirmed they are investigating what appears to be a major hack of local cryptocurrency exchange Cryptopia worth at least $3.6 million, a press release stated on Jan. 16.Cryptopia, which abruptly shut down its website and exchange services on Jan. 14, subsequently said it had detected malicious activity.“The Cryptopia exchange suffered a security breach which resulted in significant losses,” officials wrote in a statement uploaded to the company’s Twitter account.As users and the media learned of the hack, Cryptopia has since said it will not comment further on the ongoing proceedings as it is now in the hands of an official law enforcement investigation.“We are unable to update anyone at the moment as it's now a police matter,” one of two similarly-worded tweets pub

NZ Exchange Cryptopia Reports Hack With ‘Significant Losses’

COINTELEGRAPH, CRYPTOCURRENCY, ETHEREUM
New Zealand digital assets exchange Cryptopia has suspended services after detecting a major hack that has reportedly “resulted in significant losses,” according to a tweet posted today, Jan. 15.The exchange revealed in the tweet that the hack occurred yesterday, Jan. 14. The platform had initially informed the public it was undergoing unscheduled maintenance, issuing several similarly laconic updates before today’s official disclosure of the breach.According to today’s tweet, the exchange has notified government agencies and authorities, including the New Zealand Police and High Tech Crimes Unit, who have reportedly opened an investigation into the matter and are allegedly treating the incident as a major crime.Cryptopia — whose total daily trade volumes are currently not disclosed on Coi
Spanish Securities Regulator Adds 23 Forex and Cryptocurrency Exchanges to Warning List

Spanish Securities Regulator Adds 23 Forex and Cryptocurrency Exchanges to Warning List

COINTELEGRAPH, CRYPTOCURRENCY
The Spanish National Securities Market Commission (CNMV) has added 23 unauthorized forex and cryptocurrency entities to its warning list on Jan. 14.Among the companies added to the list is Blonde Bear OÜ, also referred to as Black Parrot Ltd., which claims to be a forex and cryptocurrency exchange operator but reportedly operates in Spain without a license.The company, which operated on the trade111.com and tradex1.com domains, has also been flagged by the Polish Financial Supervision Authority for operating in Poland without the required license.Another company added to the CNMV’s warning list is Dax300, also known as Brown Fox Ltd., for operating in Spain without a license. This company is involved in the trading of contracts for difference (CFD) tracking cryptocurrencies, commodities an
Two Alleged Ethereum ‘Scam Forks’ Appropriating Users’ Private Keys, Report Finds

Two Alleged Ethereum ‘Scam Forks’ Appropriating Users’ Private Keys, Report Finds

COINTELEGRAPH, CRYPTOCURRENCY, ETHEREUM
Altcoins Ethereum Nowa (ETN) and Ethereum Classic Vision (ETCV) are reportedly appropriating the private keys of users trying to redeem their allegedly forked coins. The suspected scam was covered in a report sent to Cointelegraph by the Guarda Wallet development team on Jan. 11.The official website of the Ethereum Nowa project — which doesn’t contain a white paper — describes the process that users are supposed to engage in to obtain ETN. According to the website, the user should first send ETH to an address, and then export the private key and redeem the cryptocurrency using the dedicated online tool.A user on Ethereum block explorer Etherscan has commented on the aforementioned address, asserting that the address is engaging in a “scam [hard] fork/airdrop” after warning “Don’t send anyt
Maltese Celebrities Notify Police After False Report of Involvement in Crypto Investment Scheme

Maltese Celebrities Notify Police After False Report of Involvement in Crypto Investment Scheme

BITCOIN, COINTELEGRAPH, CRYPTOCURRENCY
A Maltese actor and two hosts of a local TV show have notified the police after a false report that they are involved in a Bitcoin investment scheme called “Bitcoin Revolution.” The story was reported by the Malta Independent and Malta Today on Thursday, Jan. 10.As per the Malta Independent, an article with a fake endorsement of Bitcoin Revolution was initially published on a website called Major News. It depicted two hosts of the One Breakfast show, Wayne Sammut and Elaine Degiorgio, and falsely claimed that Davide Tucci, a Maltese actor and TV star, was a guest on their show.Major News continued its false report by claiming that Tucci convinced Degiorgio — as they were “on air” — to make a 250 euro deposit to a trading platform called Bitcoin Revolution, which supposedly had helped himse
Hackers Turn Twitter of Belgian Non-Profit Into Fake Coinbase Promo Account

Hackers Turn Twitter of Belgian Non-Profit Into Fake Coinbase Promo Account

COINTELEGRAPH, CRYPTOCURRENCY
The Twitter account of a Belgian non-profit was evidently hacked and made into a fake affiliate account of United States crypto exchange Coinbase. The impersonating account posted what what appeared to be a scam giveaway promotion, allegedly celebrating Coinbase's user base growth in a tweet today, Jan. 9, that has since been deleted.Scammers had targeted the account of the Federation of Enterprises in Belgium (FEB), a non-profit organization that aims to promote the interests of Belgian businesses.After taking control of the FEB’s Twitter account, the scammers transformed the account to appear to be affiliated with Coinbase. The account’s description read “Official Coinbase Promotion Account,” and its profile and cover photos featured Coinbase branding, as well as a link to Coinbase’s off
US: Financial Data Co. FactSet Sues Blockchain Terminal Affiliate

US: Financial Data Co. FactSet Sues Blockchain Terminal Affiliate

COINTELEGRAPH, CRYPTOCURRENCY
United States financial research company FactSet has filed a lawsuit against a company affiliated with professional trading service Blockchain Terminal (BCT), according to documents published by the Supreme Court for the State of New York County, Jan. 3.As stated in the lawsuit, in January, 2018, FactSet and the defendant — CG Blockchain — entered into an agreement to develop an interfacing application between the two firms' products. FactSet also granted a license to CG to use its products.According to the documents, CG had agreed to pay a minimum licensing fee of about $3.8 million, payable in three increments.However, FactSet claims that the amount was not payed, and insists the contract between the two companies has thus been breached. Moreover, the plaintiff states that CG retained th
From Bitconnect to SIM-Swap Swindling: 2018’s Biggest Scams

From Bitconnect to SIM-Swap Swindling: 2018’s Biggest Scams

COINTELEGRAPH, CRYPTOCURRENCY
2018 will long be remembered as the start of a significant cryptocurrency bear market, but the declining market still provided opportunities for scam artists to snag unwary investors.Given that 2017 was a breakout year for Bitcoin (BTC) and the likes, investors were clamoring to enter the fray as the price of cryptocurrencies skyrocketed toward the end of the year.With such a positive environment, businesses and developers looked to leverage blockchain technology for new projects, leading to a boom of new initial coin offerings (ICO) that has collectively raised more than $20 billion since the beginning of 2017.This provided the right atmosphere for more nefarious individuals to set up scam operations looking to fleece unsuspecting victims.The modus operandi varied from project to project,...