ThreatFabric, an Amsterdam-based cybersecurity firm specializing in threats to the financial industry, has identified the "Cerberus" Trojan that steals 2-Factor Authentication (2FA) codes generated by the Google Authenticator app for internet banking, email accounts, and cryptocurrency exchanges. US-based cryptocurrency exchange Coinbase is one of the crypto platforms listed in Cerberus’ exhaustive list of targets — which also includes major financial institutions around the world and social media apps. The cybersecurity firm notes that it has not identified any advertisement on the dark beb for Cerberus’ updated features, leading it to believe that the updated version is “still in the test …

The FCoin exchange has officially announced that it will relaunch operations. A committee was formed after the exchange announced insolvency, promising to eventually return users’ funds. The exchange’s existing team will resume the operation of the FCoin and FMex websites, handing them over to an “interim committee” led by community representatives. The announcement was made on Feb. 27 on FCoin’s support page. The community will draft a compensation plan for the users affected by the insolvency. No details are available, with the announcement suggesting that it could be a mix of creditor’s rights or company equity. Finally, after the payment …

Janet Jackson’s ex-husband, the Qatari billionaire Wissam Al Mana, is suing Facebook after a crypto scam used his image to promote itself in the Middle East without his permission. Al Mana is claiming defamation, malicious falsehood and false advertising by the unnamed cryptocurrency firm, The Times reported on Feb. 23. His defamation action has been filed in Dublin, Facebook’s European headquarters, where the legal framework for such cases is deemed to be more amenable for plaintiffs than the United States. Sue Facebook in Dublin, not Menlo Park Defamation cases, according to Belfast-based defamation lawyer Paul Tweed, stand a greater chance …

Less than two years after bursting onto the scene, Chinese crypto exchange FCoin has shut down its operations. The platform, founded by Zhang Jian, also says it may be unable to pay the 7,000 to 13,000 Bitcoin (BTC) — about $67 million to $125 million — that is owed to its customers. Jian, the former chief technology officer of Huobi, tried to explain the reasons for the platform’s insolvency, identifying poor auditing practices. Crypto pundits, however, say there is a more sinister aspect to FCoin’s demise — one that involves a cleverly orchestrated exit scam by the platform’s hierarchy. An …

Steve Chen, the mastermind behind the $147 million Gemcoin cryptocurrency scheme, has admitted to wire fraud and tax evasion in a plea agreement. The 62-year-old Southern California resident agreed that he and other co-conspirators fraudulently promoted a cryptocurrency called Gemcoin (or Gem Coins) that helped fleece $147 million from 70,000 victims. Chen, also known as “Boss,” reported an income of $138,000 in 2014 which is a far cry from the $4.8 million he now admits to pocketing that year. Chen used the proceeds to buy homes and pay for a gambling habit, authorities said. Virtual Coins Backed By Nothing Between …

Bitcoin Gold (BTG)’s price is being manipulated by a whale controlling close to half of the circulating supply. These are the findings of an analysis conducted by an independent trader and analyst, who preferred to remain anonymous. He published his findings in a blog post, where he explained why he believes a single group of people accumulated their way into a huge Bitcoin Gold position, and are now using that supply to control the market. Accumulation through Bitfinex The events started in August 2018, when Bitfinex margin long positions began its sharp ascent to include almost two million BTG. The …

A new extortion scam targeting website owners serving banner ads through Google's AdSense program has begun circulating the Internet. The malicious scheme demands Bitcoin (BTC) in exchange for preventing an attack, which would purportedly lead to the users’ AdSense account suspension. The email-based extortion scheme was reported by security news and investigation blog KrebsOnSecurity, on Feb. 17. The blog post detailed that some site owners received a message as their site had been spotted by the malicious program as one seeking revenue from publishing an ad. The message ostensibly read: “Very soon the warning notice from above will appear at …

An Ohio man has been charged by the United States Securities and Exchange Commission for allegedly defrauding 150 investors in a cryptocurrency trading scheme. The SEC’s complaint, filed in federal court in New York on Feb. 11, accuses Michael W. Ackerman of raising at least $33 million in violation of anti-fraud provisions for federal securities laws. Luring investors via a private Facebook group for “Physician Dads” Ackerman’s scam was operated together with two unnamed founding partners, with whom he established the Q3 Trading Club in June 2017. This was followed by an investment partnership Q3 I LP, and an affiliated …

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 …

Two men have been charged over an alleged crypto trading Ponzi scheme lured investors, including professional baseball players, with social media posts boasting about their luxurious lifestyles. On January 30, the United States Secret Service arrested the Arizona-based founders of Zima Digital Assets, John Michael Caruso, aged 28, and Zachary Salter, aged 27. Caruso commonly refers to himself as "Krypto King" in social media posts and claims he’s been a cryptocurrency investor since 2012. He has a criminal history and was last released from prison in late 2017. Salter is an aspiring R&B singer who releases music under the name …

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 …

Blockvest, which is currently embroiled in a dangerous lawsuit with the SEC, obtained a small victory in a similar case filed by an elderly couple. However, the Jan. 21 court filing suggests that this is based on a legal technicality. The case against Blockvest was filed by Tommy and Christine Garrison, who alleged that the project violated securities law and regulations, and engaged in unlawful business conduct and financial elder abuse. The couple had filed the case against Rosegold Investments and Master Investment Group, the companies behind the project. They also cited Reginald Buddy Ringgold, III, aka Rasool Abdul Rahim …