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Bitconnect Scam: How to receive $2.5 Billion Refund from FBI?

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FBI has then taken on the task of investigating the crimes that have been committed by Bitconnect and announced that it is seeking information from victims.

BitConnect: A cryptocurrency that became famous only for developing a major Ponzi scheme that valued the coin (BCC)for a market cap of $2.5 billion in the peak of December 2017.

The company proposed its value, which was that the users would receive up to 10% return on their investment each month. Bitconnect also claimed to use the strategy of tiered-investment which was based on the total amount of funds that an investor will initially deposit.

On 3rd Day of January 2018, BCC reached the top of its all-time high at $463, before plunging by 65%, down to $5 by the end of January. Bitconnect attempted to repay all investors for $363 per BCC, but by the time the investors received the coins, the price had already gone well below $10, making their refunds practically worthless.

Bitconnect tried to pay back to all its investors for $363 as per BCC, but by the time the investors received the coins, the price had gone down below $10, making their refunds worthless.

After receiving a cease order which was issued by the regulators in Texas and North Carolina, Bitconnect then announced that they would be shutting down their exchange and lending operations. The assets of the company got froze and the founders are currently under investigation.

 

Seeking information from the Bitconnect victims:

After the dozens of lawsuits filed against the company, FBI has then taken on the task of investigating the crimes that have been committed and further announced that it is seeking information about victims who may have lost their money by the Ponzi scheme.

FBI has prepared a questionnaire Based on the type of questions that are being asked, it looks like that the FBI is in search of anyone who is possibly involved in promoting Bitconnect.

 

The questions that the questionnaire consists of are:

  • Where did you first hear about Bitconnect? (Friend, Youtube, Event, Other)
  • How much money did you invest in Bitconnect?
  • What was the username associated with your Bitconnect account?
  • Who referred you to Bitconnect (if applicable)?

Based on these questions the FBI is investigating and looking into the case.

 

In the end:

Ponzi schemes seem to be around for decades, they always look into finding new ways to emerge and trick unsophisticated investors into pouring money into them. At last, hopefully, those people who lost money learned the most important lesson from experience.

#Scam

Alert: Bitcoin Core Developer Accuses HitBTC of Scam

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Luke Dashjr, a Bitcoin core developer is claiming that the cryptocurrency exchange HitBTC is a scam and the company is stealing money from the customers.

Luke Dashjr, a core developer of the original Bitcoin is claiming that the infamous cryptocurrency exchange HitBTC is a scam and the company is stealing money from the customers by not letting them withdraw their cryptocurrencies from the exchange.

 

Is HitBTC a Scam?

According to Luke Dashjr, HitBTC is surely a scam as the exchange is not letting him withdraw his funds from the exchange. The issue initiated when the exchange suddenly started to ask for personal information from Luke which according to him was not supposed to concern the exchange at any cost. The bitcoin core developer is also advising other people in the cryptocurrency space to withdraw their funds from Hitbtc.

 

HitBTC is shutting down the exchange accounts of people who are not complying to their KYC requirements, however, earlier the exchange did not have any KYC requirement. The exchange had earlier pledged to give a notification to the traders if there are any changes in the rules and policies of the company, however, Luke said that the company never sent any kind of notification at all.

 

Reply by HitBTC:

HitBTC replied back to the allegations very quickly stating that the withdrawal issue was due to the token swap of KIN which was going on at that particular time. They also asked Luke to send them over his details so it’s easy for them to find a solution for him.

 

Other Allegations:

HitBTC has been accused of scam and fraud by many people in the past including John Mcafee, one of the most famous personalities in the crypto space who called the company a fraud because of the withdrawal issues with MTC token.

Also, a complaint was recently made by a cryptocurrency trader and investor Trace Mayer who said that the company had frozen his exchange account while the Proof of Keys event was going on which was organized especially to expose cryptocurrency exchanges like HitBTC.

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#Bitcoin

Bitcoin ATM Fraud: Four Canadian Men Declared Wanted

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Four men have been suspected and declared wanted by the police in connection with the Bitcoin ATM double-spending attacks.

According to a report published by the CBC. four men have been suspected and declared wanted by the police in connection with the double-spending attacks at Bitcoin ATMs. According to the report, a hundred and twelve transactions took place in just September 2018 out of which around sixty-six (half) of these took place in Calgary and others in Hamilton, Toronto, Winnipeg, Montreal, Ottawa, and Sherwood Park. However, the men that are suspected have unknown identities and the local police are seeking the help of the public in order to identify them.

 

Bitcoin ATM: Double Spend Fraud

Bitcoin ATMs installed in these areas had a zero-confirmation transaction which means that even without a single confirmation, the bitcoin atm allowed the withdrawals which made it possible for the suspects to perform double-spending in these ATMs.

The alleged persons performed a hundred and twelve transaction averaging to around $1800 per transaction in just ten days of time and made more than $200,000 out of it.

 

How does Double-Spending Work?

Double spend is made possible due to tools developed by Peter Todd, a bitcoin core developer who resides in Canada. The tool called replace-by-fee-tools allows the user to ‘unstuck’ and ‘stuck’ transaction by paying extra fees. However, the tools were not developed or endorsed for performing such criminal activity at a bitcoin atm.

According to Peter Todd, the double spend tool creates two transactions in sequence out of which the 1st transaction makes the stated payment to the stated address and the 2nd transaction double spends the same transaction with a transaction which has a greater amount of mining fee, making the payment only to the change address. Also, the user can choose to state that the 1st transaction additional OP-Return, Multisig as well as Blacklisted address outputs. As many bitcoin miners would not accept the transactions that have these kinds of outputs, instead they will accept the 2nd transaction that is a double-spend transaction which indeed assists the user to double spend.

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#Scam

OneCoin Founders Arrested: Charged Billions for Fraud

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Konstantin Ignatov and Ruja Ignatova, the founders of OneCoin Ponzi Scheme were arrested in Los Angeles airport on Wednesday, 6th March.

Konstantin Ignatov and Ruja Ignatova, the founders of OneCoin Ponzi Scheme were arrested in Los Angeles airport on Wednesday, 6th March. As per the announcement made by the US Attorney Office of the Southern District of New York, a US district attorney has charged the founders who are accused of securities fraud, wire fraud and money laundering by tempting people to invest billions in the cryptocurrency scam.

 

OneCoin was founded in Bulgaria in 2014 as a multi-level marketing project. The members of the project received a commission for attracting more and more investors to buy the OneCoin cryptocurrency. The network of the company grew massively and had already attracted more than 3 million investors globally.

 

According to the investigation, OneCoin made more than $3.77 billion in sales revenue and around $2.25 billion in profits between the 4th quarter of 2014 and 3rd quarter of 2016.

 

The district court attorney said that the founders performed an old-school pyramid scheme on a new-school program which compromised the probity of the financial system of New York and extracting billions from people in the form of investments.

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