The United States government has stood by its evidence presented against alleged OneCoin money launderer and former attorney Mark Scott. In a memorandum filed on March 24, the government responded to Scott’s appeal that the prosecution provided insufficient evidence that the funds he handled were derived from illicit activities during November’s proceedings — where a jury handed the defendant a guilty verdict. The former attorney was found to have personally profited $50 million for laundering $400 million in OneCoin’s profits. Scott filed his motion to dismiss the case with the court last month. U.S. government rejects Scott’s appeal The government …

Despite YouTube’s many aggressive actions against cryptocurrency-related content, the world’s most popular video-hosting website is apparently having trouble discovering a major scam account involving crypto. On March 23, the crypto community spotted a bogus YouTube account impersonating Brad Garlinghouse, CEO of major blockchain company Ripple, in order to promote a fake airdrop scam. Video containing fake XRP airdrop description was uploaded on YouTube on March 19 The apparent scam account has around 277,000 subscribers and contains only one video, which promotes a fake giveaway in the third-biggest cryptocurrency, XRP. Uploaded on YouTube on March 19, the video description promotes a …

United States derivatives markets regulator, the Commodity Futures Trading Commission (CFTC), has joined the list of global authorities warning the public against cryptocurrency scammers trying to capitalize on the widespread coronavirus fears. In a statement issued on March 19, the CFTC highlighted that fraudsters commonly use major news events like the spread of COVID-19 in order to add credibility to their scam schemes or manipulate emotions. CFTC sees increased complaints involving crypto or forex-related scam schemes According to the statement, the agency has received hundreds of fraud complaints involving online digital assets or forex-related fraudulent schemes that promise to deliver …

As the number of global coronavirus cases grows each day, online scammers are turning to cryptocurrencies like Bitcoin (BTC) to steal money under the cover of the global pandemic. According to cybersecurity firm Sophos, some online perpetrators are now impersonating the World Health Organization (WHO) in an attempt to steal cryptocurrency donations to fight the COVID-19 pandemic. Scammers look to profit from the recently launched COVID-19 Solidarity Response Fund Chester Wisniewski, a cybersecurity expert at Sophos, reported on WHO impersonators in a March 19 tweet, posting email screenshots from scammers. According to Wisniewski, the fraudsters are trying to mislead people …

Two Canadian nationals have been sentenced to two years in a United States federal prison for stealing 23.2 Bitcoin (BTC) through a scam on Twitter in 2017. According to the U.S. Department of Justice, on March 17, 23-year-old Karanjit Khatar and 24-year-olds Jagroop Khatkar were formally sentenced to 24 months in prison and three years supervised release for money laundering and conspiracy to commit wire fraud. Scammers impersonate HitBTC support staff on Twitter Beginning in October 2017, the British Columbia-residents were found to have impersonated customer service representatives from the Hong Kong-based cryptocurrency exchange HitBTC. Acting under the handle “@HitBTCAssist,” …

Bitcoin (BTC) began its sudden crash due to another giant sell-off from the PlusToken pyramid scheme, analysts are suggesting as BTC/USD lost $8,000 support. According to various online commentators citing Blockchain data, participants in the $2.9 billion scheme are again attempting to rid themselves of their BTC. Mixer moves likely mean selling Ergo, the Twitter account that closely tracks PlusToken’s activities, put the total funds involved at around 13,000 BTC or roughly $210 million at the current market price. This time, Ergo said, the coins were going to mixing services to hide their traceability. Two feeder addresses have been identified, …

Zachary Salter, the co-founder of Zima Digital Assets alongside 28-year-old John Caruso, has pleaded not guilty to charges of money laundering and conspiracy to commit wire fraud in his arraignment in Arizona on March 4. The criminal indictment alleges that the pair ran a purported cryptocurrency investment scheme that was used to defraud their customers of more than $9 million in a classic Ponzi scheme. Approximately $1.9 million in deposits were cycled back to early investors as supposed investment returns. The purported profits served to validate the scheme, contributing to a further wave of deposits. The remaining $7 million was …

A whistleblower has revealed the existence of a 200-employee Ukrainian Bitcoin (BTC) trading scam that netted $70 million in 2019. The whistleblower outed the scam by providing footage and internal company documents to Swedish newspaper Dagens Nyheter, which reported the news on March 1. The scam predominantly targets investors based in Australia, New Zealand and the United Kingdom by using fake news articles advertised on Facebook and some mobile game platforms. The stories feature interviews with celebrities who purportedly made a killing by investing in crypto — including Gordon Ramsey, Hugh Jackman and Martin Lewis. Ukrainian company Milton Group accused …

The co-founder of cryptocurrency-inspired Ponzi scheme OneCoin faces charges of fraud and money laundering in her absence — but will now become a movie star. As Hollywood news outlet Deadline reported on Feb. 4, a United States production company has won the rights to a podcast about Ruja Ignatova originally aired by the British Broadcasting Corporation (BBC) in the United Kingdom. OneCoin drama plans to “get the word out” Charting the rise, fall and disappearance of Ignatova, “The Missing Cryptoqueen” saw 3.5 million downloads in four months when it went live in 2019. Now, New Regency Television will turn the …

Ugandan legislators are exploring the role of cryptocurrencies in connection with pyramid scheme frauds that are often found in the country, local newspaper PML Daily reported on Feb. 4. While legislators are moving forward with a proposal to criminalize Ponzi schemes, cryptocurrencies may come under fire as well. Speaking at the parliament, the State Minister of Finance David Bahati revealed that the government has established a task force to explore cryptocurrencies and their potential applications in Uganda. The task force will also focus on global industry 4.0 trends that could result in major developments for the country and region. Though …

The North Korean hacking team Lazarus Group targeted several crypto exchanges last year, Chainalysis reports. One of the attacks involved the creation of a fake, but realistic trading bot website that was offered to employees of DragonEx exchange. In March 2019 the hackers stole approximately $7 million in various cryptocurrencies from Singapore-based DragonEx exchange. Though a relatively small sum, the hackers went to great lengths to obtain it. The group used a sophisticated phishing attack where they created a realistic website and social media presence for a fake company named WFC Proof. The supposed company had created Worldbit-bot, a trading …

French, Belgian and Israeli investigators have brought down a scheme that defrauded €6 million ($6.64 million) from French and Belgian citizens, a Jan 29. press release from Europol reads. The fraudsters promised significant returns for the victims’ investment in what appears to have been a Ponzi scheme. The international network of fraudsters was allegedly masterminded by a French-Israeli citizen. Authorities arrested nine suspects connected with the scam in 2019. The investigation started in 2018 and was coordinated by Europol and Eurojust. The criminals reportedly set up a system promising large gains from investments in Bitcoin, diamonds and gold, and offered …