There are more than 5,000 diverse cryptocurrencies being traded with a total market cap of nearly $250 billion. As much as 95% of those cryptos are nothing but scams, according to the creator of the world’s first proof-of-work, or PoW, crypto. Emin Gun Sirer, the creator of the first PoW-based crypto, the Karma System, is confident that the vast majority of cryptos do not represent any tech advancement and only exist to grab people’s money. Bitcoin did it first In an April 29 AMA session with Equilibrium EOSDT, Sirer slammed crypto projects like Facebook’s Libra for wanting to compete with …

While Google’s subsidiary, YouTube, is facing a lawsuit for promoting cryptocurrency scams, Google’s advertising platform continues to display fraudulent crypto ads through its advertising network. According to a report by Bitcoin (BTC) crypto exchange, CoinCorner, Google Ads was running an ad for CoinCorner’s phishing clone website, CoinCornerr.com. The issue was reported by CoinCorner’s marketing manager, Molly Spiers, on April 30. Google Ads promotes a crypto scam but doesn’t want to promote a real firm Spiers told Cointelegraph that CoinCorner’s team first noticed the fraudulent ad on Thursday morning after searching for “CoinCorner” on Google.com and Google.co.uk. According to the executive, …

A study carried out by SophosLabs in conjunction with cryptocurrency intelligence company, CipherTrace, revealed that sextortion scams are a profitable business. Between September 1, 2019, and January 31, 2020, nearly $500,000 in profits we gained by cybercriminals engaging in sextortion. According to the report, the modus operandi is that the scammers told victims through email that their computers were hacked and that they allegedly obtained information on their history of visits to pornographic pages. They then proceeded to extort the recipient of the message, asking for $800 worth of Bitcoin (BTC) as payment. Bigger criminal enterprises could be behind the …

The Federal Bureau of Investigations (FBI) expects a rise in the number of crypto scams related to the coronavirus pandemic. In a April 13 press release, the FBI warned that the increase of “cryptocurrency-related fraud schemes” would only be facilitated by more people getting on board with crypto. The elderly are particularly vulnerable, but the agency is reporting people of all ages could be victimized by such scams. “There are not only numerous virtual asset service providers online but also thousands of cryptocurrency kiosks located throughout the world which are exploited by criminals to facilitate their schemes. Many traditional financial …

The Texas securities regulator has continued its crackdown on cryptocurrency scams, spotting an alleged fraudulent crypto firm that made fake claims about COVID-19 donations. On April 8, the Texas State Securities Board (TSSB) issued an emergency cease and desist order against Ultra Mining, alleging that the crypto mining firm is involved in diverse illicit activities including purportedly fraudulent claims to double investors’ money. As specified in an official TSSB notice, the Texas action was brought jointly with the Alabama Securities Commission to stop the ongoing illegal offering. According to the order, Ultra Mining is promising some “eye-opening returns.” As such, …

Amid the apparent global surge of cryptocurrency-related scams, New Zealand’s financial regulator has warned the public against another suspected Bitcoin (BTC) investment scam scheme. In an April 6 statement, the country’s major financial watchdog, the Financial Markets Authority (FMA), issued an official warning against “Profit Bitcoin” — an alleged get-rich-quick scam that promises returns by using software that “wins” Bitcoin trades with “99.4% accuracy.” Scam purportedly involved false claims from the New Zealand’s government The FMA noted that the entity and its website, theprofitbtc.com, have the “hallmarks of a scam,” emphasizing that Profit Bitcoin is not registered as a financial …

The United States Securities and Exchange Commission has charged a former pastor and his wife for stealing $500,000 through a trio of fraudulent businesses, including a cryptocurrency offering purportedly backed by a bottled water business. According to a complaint filed on April 2, the pair also sold fake shares in their struggling water business, Teshuater, in addition to conjuring up a non-existent Bitcoin (BTC) mining outfit to dupe investors in Houston, Texas. Former pastor offers 1,400% returns overnight The complaint alleges that Larry and Shuwana Leonard “targeted investors in the African-American community by promising oversized returns on various investments related …

Three alleged cryptocurrency traders ran a Ponzi scheme which scammed more than 100 investors for over $35 million, according to a lawsuit filed by an entity formed by the victims in a federal court of Florida, United States. According to an announcement published on April 2, Q3 Investment Recovery Vehicle, who represents defrauded investors, accused the trio of alleged crypto traders of cheating victims by promising them a winning trading formula. Former NYSE and Wells Fargo workers among the accused The federal securities fraud case names three individuals as the primary perpetrators of the scheme. They include James Seijas, who …

Fake Google Chrome extensions for crypto hardware wallet manufacturer and custody provider, Ledger, continue to claim victims. On March 28, a post was published to Reddit by a user seeking to warn others that they had just lost 14,908 Ripple (XRP) (roughly $2,577) to a fake Ledger Wallet extension on the Google Chrome store. According to the poster, ‘leannekera’, the lost funds comprised a nest egg that she and her husband had been growing since 2017. The wallet that her XRP was sent to quickly forwarded her funds to a second wallet that currently holds nearly 15 million in XRP. …

Following a warning from the national watchdog earlier this month, regional authorities across the United Kingdom say Bitcoin scammers are using the coronavirus crisis to hoax citizens. In a series of consumer fraud alerts published throughout March, Manchester city council and the counties of Pembrokeshire and Norfolk echoed the Financial Conduct Authority (FCA)’s caution against “sophisticated” and “opportunistic” cryptocurrency-related schemes operating during the pandemic. Misrepresentations The three regional authorities identify a range of tactics adopted by Bitcoin (BTC) scams to take advantage of the social disorientation and anxiety amid the public health crisis. Manchester city council warns against: “Fraudsters purporting …

The Manitoba Securities Commission (MSC) has issued a public warning against cryptocurrency scams after reports of fraud involving two European firms. On March 20, the Manitoba securities watchdog published an investor alert regarding Jbcapitals and Halifax & Associated for defrauding a rural Manitoban of more than $5,500. The two firms are affiliated with each other and primarily operate in Switzerland and Denmark. Crypto scammers target victims on Facebook Senior MSC investigator Jason Roy stated that the victim was lured by a Facebook ad for Jbcapitals: “The company, Jbcapitals claimed to invest in Bitcoin/cryptocurrency markets on behalf of their clients with …

Janet Jackson’s billionaire ex husband, Wissam Al Mana, has demanded that Facebook reveal who was behind ads on the platform that used his image to promote a crypto scam. The case stems from late February when Al Mana filed a lawsuit against the social media giant about a cryptocurrency scam using his name to promote itself in the Middle East. Al Mana claimed defamation, malicious falsehood and false advertising from the purported cryptocurrency firm ‘Bitcoin Trader’. One man to sue them all Facebook has since deleted the offending ads, but Al Mana is concerned fraudsters can publish similar ads containing …