Chinese police have reportedly arrested a group of scammers who launched a faux crypto scheme to recoup their losses after being defrauded by a number of different crypto-related cons themselves. According to an article from the Public Information Network Security Supervision Bureau posted on WeChat earlier today, an investor named Yang created a fake investment scheme after losing around 100,000 yuan (over $14,000) to a crypto MLM project. After teaming up with two other investors who had similarly been deceived by crypto scammers, Yang launched a fake mobile app and a token called "Baiye Chain". Their operation reportedly amassed more …

A Manhattan federal judge has ruled that Longfin — a now defunct firm whose shares surged 1000% in 2017 after it bought an undervalued crypto company — must repay $223 million plus interest to investors over alleged securities fraud. In a July 29 order, Judge Denise Cote determined the nine-figure sum is collectively owed by Longfin, its chief executive Venkata Meenaalli, CTO Vivek Ratakonda, and the director of two related companies, Suresh Tammineedi. The ruling granted a default judgment that had been requested by lead plaintiff Mohammad Malik in January. Malik’s argument emphasized a request from Longfin’s counsel to withdraw …

The Australian Securities and Investments Commission, or ASIC, is asking people to remain cautious about celebrity-endorsed Bitcoin (BTC) scam sites. According to the commission’s public warning, the Australian watchdog has received a number of reports of fraudulent crypto sites that claim to be endorsed by prominent businesses, new sites, and government agencies. Some even appear to have the endorsement of national celebrities like Waleed Aly, Mike Baird, Dick Smith, and Virginia Trioli. Crypto bot scams are active in Australia The ASIC outlined a number of examples as part of their warning. One example, Bitcoin Evolution, is a fake crypto trading …

The story of PlusToken, one of the largest scams in the cryptocurrency industry, takes another twist as dozens of major suspects have been arrested. As many as 27 core PlusToken team members have been arrested by Chinese police, according to a July 30 report by local industry publication ChainNews. According to the report, the total amount of investor losses in the PlusToken scam is estimated at 40 billion Chinese yuan or $5.7 billion. The report also mentions that investigators have also arrested another 82 core members of the scheme. Dovey Wan, founding partner of blockchain-based investment company Primitive Ventures, tweeted …

Cybersecurity firms have identified an exponential rise in crypto-related scams in Russia during the first half of 2020. Researchers identified 23,000 sites involved with crypto scams that are still online and targeting new victims. According to Kommersant, which cited research from Kaspersky Labs, the problem is three times greater than during the same period last year. One common example sees victims offered the chance to complete surveys in order to receive commissions — however they’re required to pay an “entrance fee” fee first. Another scam, identified by Qrator Labs, involved sites that offered victims more than $275 per hour to …

Last week Cointelegraph published a story about investors having difficulty getting their money back from a crypto fund called AMFEIX, which promised high-yield profits for investors who sent them Bitcoin (BTC). Our story described more than 500 pending withdrawals from users trying to get their money back, and AMFEIX’s unsatisfactory communication with those users. The company addressed its users via its official Telegram channel after the story was published, suggesting that the withdrawal delays were due to technical difficulties that had been an issue since May. It also stated that “members who show loyalty to AMFEIX will have priority” in …

A New York State appeals court affirmed on July 9 that the state attorney general’s fraud investigation into iFinex et al. — i.e., iFinex, Bitfinex and Tether Holdings — could continue. Whether that probe will result in litigation against the company that issues Tether (USDT), the world’s most widely used stablecoin, is anyone’s guess, but if it does, it might promote a more regulated stablecoin industry. As Felix Shipkevich, an attorney specializing in cryptocurrency-related legal and regulatory matters at Shipkevich PLLC, told Cointelegraph: “The New York attorney general, NYAG, is often viewed as the nation’s most important state enforcer of …

A number of people who invested in a cryptocurrency company are claiming that the company is scamming its users. The fund in question is called AMFEIX, which promised high-yield monthly returns to its users and supposedly raised more than $60 million in Bitcoin (BTC). At the end of June, Cointelegraph began receiving emails from AMFEIX users who had invested their funds into the project. These users claimed that there have been lots of pending withdrawal requests that have been delayed since May 2020. They also claim that the project's support team has been ambiguous in how it communicates with investors. …

A South Korean court has sentenced an unnamed 43-year-old man to two years and six months in prison for his participation in a $249 million crypto mining pyramid scheme. According to Yonhap Lee Sang-wook, the judge at the Incheon District Court who made the announcement, the crypto mining pyramid scheme is still under investigation. The indicted was allegedly a secretary of the illegal company from May 1 to September 23, 2017. No details were given about the magnitude of his involvement, nor the specific cryptocurrency involved in the fraud. Police said that he played an active role by sending fake …

Wirecard chief operating officer Jan Marsalek reportedly used Bitcoin (BTC) to move funds from Dubai to Russia. Russian media outlet Kommersant reported on July 20 that Marsalek is hiding in Russia with funds that he was able to transfer there with the cryptocurrency. Per the report, Marsalek is currently in a private house near Moscow under the supervision of Russian special services. Documents leaked earlier this month also suggest that Marsalek indeed had links with Russian government operators. According to a recent report, he allegedly held secret documents and bragged of his intelligence service ties in an effort to further …

Cities in China will soon begin testing a new Central Bank Digital Currency, or CBDC. Scammers are now taking advantage of this fact by impersonating “CBDC test” groups. According to Tencent QQ, criminals are promoting a scam that asks potential victims to open a new debit card. Victims are told they will receive a “significant amount of money” after an initial investment, generally starting around 10,000 yuan ($1430 USD). Each victim is promised that their investment will grow to 70,000 yuan ($10,023) within an undisclosed period. This scam seems to be appearing most frequently in the cities where CBDC tests …

Jan Marsalek, the former chief operations officer of Wirecard who went missing after his supposed trip to the Philippines last month to chase the missing 2 billion Euro in the company’s books, has been located in Belarus. Marsalek reportedly entered the Philippines via Manila before flying to Cebu City and then to China in June. Philippine authorities said there was no footage of Marsalek arriving in the city nor were there records of a flight leaving Cebu for China. Forged traveling tracks According to investigative reporting website Bellingcat, the former Wirecard executive’s trip to the Philippines was forged. Investigations have …