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Ex SEC Member Calls Bitcoin a sham and IEO a Medium for Fraudulent Activities

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John Reed Stark, ex SEC's staff who worked at the commission's enforcement division joins a host of others to cast their assertions on Bitcoin.

John Reed Stark, ex SEC’s staff who worked at the commission’s enforcement division for over 15 years, joins a host of others to cast their assertions on Bitcoin.

Stark opines that bitcoin isn’t what its purported to be. He further explained that the only use case for the most valued cryptocurrency is its use as a tool for facilitation crimes.

Attorney John Reed Stark is an expert on cybersecurity and his company; John Reed Stark LLC manages cybersecurity projects for both the government and the private sector.

 

Stark Damns Bitcoin In Recent Post

In a recent post on the Law 360 Column, Stark badmouths bitcoin. In his writeup, Stark appeals to investors to stay away from bitcoin before they lose their hard earned investments.

Further, Stark, in his statement, emphasized that besides bitcoin used for speculations, the coin is majorly used to launder money secretly, financing terrorist organizations, coupled with several extortion schemes.

“Need a way to collect a ransomware payment? Need to fund terrorist-related activities? Need to hire a hitman? Cryptocurrencies like bitcoin have become the payment of choice for these, and a slew of other, criminal enterprises.”

 

IEO; a Medium for Fraudulent Activities

IEOs, unlike IPOs, are unregulated. Stark made this known in his statement that the cryptosphere has become a means for fraud. Different projects have used this medium to defraud a lot of unsuspecting investors of their money.

However, Stark assures that the SEC has kept an eye on happenings in the cryptosphere regarding IEOs and soon will go after the perpetrators to hunt them down.

 

In his word’s, Stark speaks on IEOs saying;

“IEOs represent yet another blatant attempt to hijack a similar-sounding acronym — IPO — to lure investors seeking to get rich quick. However, just like ICOs, the IEO has not a single element in common with the IPO (other than the first and last letters of its acronym).”

 

Criminals Extorting Bitcoins From Corporations as Ransoms

In his many years of experience, Stark boldly affirms the damage bitcoin extortion have had on the industry.

Among countless incidences, cybercriminals have chosen bitcoin and other privacy coins which are difficult to trace as ransoms to be paid by their preys before repossessing their possessions.

He also affirms that most victims have no choice but to pay the ransoms to protect their interests or that of their organization.

“How do most corporate victims of ransomware attacks pay the ransoms demanded? Bitcoin of course – it’s fast, reliable, verifiable, subject to little regulation, and virtually untraceable. Bitcoin is ideal for ransomware extortion schemes.”

 

Stark Joins a Host of Other Pessimists

In the past, there have been a couple of big shots which also have, like Stark, badmouthed bitcoin. Among them are Warren Buffet – who believes bitcoin is a “rat poison” and also compares it to a seashell.

Craig Wright, the self-acclaimed bitcoin initiator, has of recently said bitcoin will tank to Zero and then disappear into thin air.

It’s still very unclear why he’ll want his dream gone, but according to him, he plans to prove he’s the “real Satoshi Nakamoto” and deal with those who say he’s not; making the popular podcaster, Peter McCormack an example.

“I’m going to take pitiful people like Peter [McCormack] apart, as sad as it is, because of their stupidity. And as a lesson. People are going to learn that you cannot lie and cheat and defame people without consequences.”

Despite the challenges looping around bitcoin, it has presented itself to be a valuable asset especially in the area of global remittances.

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Written by Janet F. Sanchez

Janet Sanchez writes articles which, considering where you’re reading this, makes perfect sense. She is best known for writing cryptocurrency related news and blogs. She also writes about business, finance, and technology. Working from home and taking care of her little son, she has a passion for writing.

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