Scams

FCoin Blames Poor Auditing for Shutdown, but Others Suspect Exit Scam

Less than two years after bursting onto the scene, Chinese crypto exchange FCoin has shut down its operations. The platform, founded by Zhang Jian, also says it may be unable to pay the 7,000 to 13,000 Bitcoin (BTC) — about $67 million to $125 million — that is owed to its customers. Jian, the former chief …

FCoin Blames Poor Auditing for Shutdown, but Others Suspect Exit Scam Read More »

Gemcoin Founder Admits to Fraud in $147 Million Scheme

Steve Chen, the mastermind behind the $147 million Gemcoin cryptocurrency scheme, has admitted to wire fraud and tax evasion in a plea agreement. The 62-year-old Southern California resident agreed that he and other co-conspirators fraudulently promoted a cryptocurrency called Gemcoin (or Gem Coins) that helped fleece $147 million from 70,000 victims. Chen, also known as …

Gemcoin Founder Admits to Fraud in $147 Million Scheme Read More »

Anatomy of a dumb spear-phish: Hitting librarians up for Zelle, CashApp cash

Enlarge Sarah Shuda / Flickr Here’s a clue for would-be Internet financial scammers: do not target librarians. They will catch on fast, and you will have wasted your time. Yesterday, the former outgoing chair of the Young Adult Library Services Association’s Alex Awards Committee (and my wife) Paula Gallagher got a very odd email that …

Anatomy of a dumb spear-phish: Hitting librarians up for Zelle, CashApp cash Read More »

SEC Charges Ohio Man for $33M Crypto Fraud Targeting Physicians

An Ohio man has been charged by the United States Securities and Exchange Commission for allegedly defrauding 150 investors in a cryptocurrency trading scheme. The SEC’s complaint, filed in federal court in New York on Feb. 11, accuses Michael W. Ackerman of raising at least $33 million in violation of anti-fraud provisions for federal securities …

SEC Charges Ohio Man for $33M Crypto Fraud Targeting Physicians Read More »

Unknown Number of Major League Baseball Players Lured into Crypto Ponzi Scheme

Two men charged over an alleged crypto trading ponzi scheme lured investors, including professional baseball players, with social media posts boasting about their luxurious lifestyles. On January 30, the Secret Service arrested the Arizona-based founders of Zima Digital Assets, John Michael Caruso, aged 28, and Zachary Salter, aged 27. Caruso commonly refers to himself as …

Unknown Number of Major League Baseball Players Lured into Crypto Ponzi Scheme Read More »

Better Regulation Could Curb Crypto Scams, Chainalysis Report Says

Greater regulations and enforcement can deter some crypto crimes, blockchain forensics provider Chainalysis said in a new report. Chainalysis’ 2019 Crime Report, published Wednesday, details its analysis of illicit activities last year, contrasting 2019 actions with previous years. It found that while the amount of bitcoin sent from criminal entities doubled between 2018 and the …

Better Regulation Could Curb Crypto Scams, Chainalysis Report Says Read More »

More Bitcoin Scam Ads With Martin Lewis on Instagram — Can We Get a Filter for That?

Suspected crypto con artists are once again using the likeness of British financial expert Martin Lewis to defraud unsuspecting victims. In 2019, Lewis settled a defamation suit against Facebook for similar Bitcoin (BTC) scam adverts. Instagram says deceptive advertisements have no place on its platform and plans to continue improving its detection protocols for such content. …

More Bitcoin Scam Ads With Martin Lewis on Instagram — Can We Get a Filter for That? Read More »

Did 2019 Deliver on All That Was Promised for the Crypto Industry?

Disappointment isn’t always a bad thing. It can be a spur, motivating one to work harder to meet expectations and goals. It is in this spirit that Cointelegraph informally surveyed members of the crypto community about this past year’s unfulfilled industry promises. Here are some of 2019’s biggest disappointments: Adoption missing? Where are the giant …

Did 2019 Deliver on All That Was Promised for the Crypto Industry? Read More »

Deep Truths of Deepfakes — Tech That Can Fool Anyone

In its most basic sense, a deepfake is a combination of face- and voice-cloning AI technologies that allow for the creation of life-like, computer-generated videos of a real person.  In order to develop a high-quality deepfake of an individual, developers need to accumulate tens of hours of video footage associated with the person whose face/voice …

Deep Truths of Deepfakes — Tech That Can Fool Anyone Read More »

Pennsylvania Man Charged With SIM Swap Conspiracy to Steal Crypto

United States authorities have charged a Pennsylvania man with conspiracy to commit wire fraud and extortion via a series of SIM swaps targeting cryptocurrency execs and investors. SIM-swapping — alternatively 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 …

Pennsylvania Man Charged With SIM Swap Conspiracy to Steal Crypto Read More »