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OneCoin Founders Arrested: Charged Billions for Fraud



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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Alert: Bitcoin Core Developer Accuses HitBTC of Scam



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 ATM Fraud: Four Canadian Men Declared Wanted



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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Exposed: Japan Growth Rate Scandal, Fake Economic Data



Recently shocking news regarding the fraud in Japan's growth rate came into flash. Around 40% of the total economic data were found to be fake.

Recently shocking news regarding the fraud in Japan’s growth rate came into flash. The scandal was cast at a very large scale. Around 40% of the total economic data reported by the Japan Govt. were found to be fake. This storm is going to affect investors and businesses who were on a different page investing in the country on the basis of fake data.


It’s not a recent fault, it has been there for so long:

Those who are confused that this scam was being performed for only the recent years and reports, the truth is, it is not a recent fault. It has been there for so long. As per reports, around 40% of 56 economic policies of Japan has errors. Thus, the country has been producing and analysis over the years on erroneous policies. These economic policies have their basis on fraudulent data.

Thus, not only the recent reports, rather over the years, this scam has been continuing.


Erroneous Methods:

It seems that the knowledgeable economic policymakers were not aware of the glitch in their policies for such a long time. It is quite surprising. Let us talk about a recent survey. Recently, around 500 employees were collaborated to work on a model related to the growth of Japan. These employees were paid more than the regular same designation workers to focus on the survey with more interest.

The employee reported that the erroneous methods have affected around 20 million people. The monetary amount that Japan has incurred is around $490 million. If we add the additional cost like monitoring, it would sum up to around $759 million!

The prime minister of Japan, Shinzo Abe is very upset and annoyed with these results. This loss would certainly affect the financial condition of Japan. In related to it, the Prime Minister has announced a paltry of $5.9 million from the next year’s budget to make up this loss. Also, around 22 officials which were found to be guilty in this scam are suspended and actions are being taken against them. This list also includes the Labour Minister of Japan,  Takumi Nemoto


Bank of Japan has been assigned the work for calculations:

The impact of this scam is huge that the estimated growth rate of Japan that was supposed to around 3.3 % has been declined to 2.8% with the modified policies.

The bank of Japan is considering to do all the calculation once again to measure the final loss. It is waiting for the results of the investigations made by the Japan Govt. before starting its recalculation.

The Bank of Japan has been dependent on labor ministry for so long and it would be interesting to see how the BoJ manages to recalculate this loss.


No to crypto- Bank of Japan:

Amidst this shocking news, the BoJ has continued to have a negative view about crypto space. The rumors were strong regarding some approval of crypto in perspective of hosting of Olympics next year. But BoJ has clarified and warned people for crypto-payments. However, if we look, on the other hand, crypto could have helped the BoJ during this loss. Since the bank is looking for some better alternatives, the blockchain technology would have provided that credibility to BoJ. But this idea would not be supported by sophisticated officials as it would allow the bank to see each person’s wallet through a third party app which may concern about security and privacy. But for now, the bank of Japan has neglected all its views on using cryptocurrencies.


This news is going to adverse the economic and financial conditions of Japan. Many of the investors and businessmen are thinking as if they have been frauded by the growth rate and other erroneous reports produced by the government. They might think of taking a U-turn from their investments in Japan. Also, the loss incurred is so high. The Japan government is going to face a lot of difficulties such as calculating the exact loss, the change in policies or come with new policies etc. They ould also have to prove the investors that the new policies are not fraudulent and it maintains the accuracy.

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