One of the ways to attract users to these types of scams is to put them in the mouths of people who build their trust or even those they admire.
Those who distrust cryptocurrencies have one more reason to cover their backs: Electronic scams occur everywhere and cryptocurrency exchanges are no exception, ignorance of this trend facilitates the execution of millionaire fraud.
Hundreds of fraudulent companies have managed to scam billions of euros with fake promotions and decentralized applications. Luckily, Crypto Genius is one of the trusted application for crypto exchange.
The most notorious frauds using cryptocurrencies
It is the last of dozens of ‘crypto scams’ that have emerged in the last decade in the heat of the success achieved by bitcoin, whose price is currently around 57,470 euros.
The introduction of blockchain technology has allowed the development of thousands of cryptocurrencies such as Ethereum, Cardano, Dogecoin, Tether, and Litecoin. At the same time, businesses such as cryptocurrency trading platforms (‘exchanges’) have also emerged,
Everything GOES BACK to the end of 2017, the Centra Tech company issued a fraudulent Initial Coin Offering (ICO) that raised 28 million euros.
Impressive true and to achieve it, they were in charge of announcing agreements with Visa and Mastercard and even the boxer Floyd Mayweather and the producer DJ Khaled had promoted it.
Everything began to fall apart when two of its founders resigned and the first lawsuit arrived.
Where an investigation by the US Securities and Exchange Commission determined there was never such a strong agreement with the aforementioned financial companies, that the project was presented with a lot of misleading publicity and that even the CEO of the company was non-existent “, Criptonoticias explains.
In April 2018, the founders were arrested and their crimes of fraud were estimated to carry up to 65 years in jail.
Without a doubt, the forecast of the cybersecurity analyzes was fulfilled, since 2018 they anticipated that cryptocurrencies would exist as one of the main threats of the year.
It was like this over the last 365 days, the frauds have been spreading and improving. It was observed that there is a new wave of viruses that seek to sneak into devices and use their resources and energy to mine cryptocurrencies.
In short, this evolution in viruses illustrates that threats continually adapt to user trends. But it’s just one of the ways they can gamble you with cryptocurrencies.
Scams grew and the US Federal Trade Commission estimated that more than 2,616 million euros would be lost to crypto scams.
Twitter bots spread, some even hacked official accounts to write tweets in which they encouraged users to make transfers with Ethereum, assuring them that they would receive more money in return.
The worst was the scammers pretended to be Bill Gates and Elon Musk, with 20 million followers on Twitter and claimed that they were giving away cryptocurrencies to celebrate the new launches of the company.
It is estimated that they created a network of about 15,000 fake account bots and that using this method they achieved more than 1.4 million euros.
The year 2019 marked many events in the ecosystem of cryptocurrencies and blockchains as was the rise in the price of bitcoin or the controversy with Facebook’s announcement of its cryptocurrency, Libra, to the position of China regarding the development of blockchains.
One of the most notorious was those involved in the OneCoin scam facing justice in various countries. A company originated in Bulgaria.
Although the case comes from before this year, it was in 2019 when multiple events raised much more attention on the project that was undertaken by the so-called “crypto queen”, Ruja Ignatova, who has disappeared since 2017.
Following in the footsteps of PlusToken who was another that caused a stir this year was born in China PlusToken, a company that offered investments in various cryptocurrencies, would have scammed at least some USD 3,000 million police. This figure came after the arrest of founding members of the company last July.
Here is a review of some of the most popular “crypto scams” of recent years.
- Bitcoin Savings & Trust, Known as BST, Bitcoin Savings & Trust was a typical Ponzi scheme operated by Trendon Shavers,
- Mt. Gox was a bitcoin exchange based in Tokyo (Japan).
- Bitconnect another Ponzi scheme that defrauded more than 2 billion dollars from investors in the United States and around the world.
- Arbistar 2.0. The ‘Arbistar case’ is being investigated. It is a case similar to Bitconnect the affected people could reach 32,000,
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