The United States Securities and Exchange Commission (SEC) has halted a confirmed cryptocurrency Ponzi scheme after it took funds worth $30 million, the regulator confirmed in a press release on May 21. The principal behind Argyle Coin, Jose Angel Aman, is now subject to legal action for running a Ponzi scheme using funds he gained from investors in his alleged diamond resale outfit. Aman had previously drawn suspicion over similar diamond-related companies, each promising investors huge returns through the reselling of wholesale diamonds. Argyle Coin, it was claimed, had full backing in the precious stones. “As alleged, Aman operated a …

Cryptocurrency project OneCoin is denying claims that it is a “hybrid ponzi-pyramid scheme” and scam, news outlet Samoa Observer reported on May 14. OneCoin is purportedly a cryptocurrency Ponzi scheme project, that raised hundreds of millions of dollars worldwide by luring investors with the promise of big returns and minimal risk. An investigation by the United States found that the project’s founders had generated 3.353 billion euros ($3.769 billion) in sales revenue. In April, a church in the Pacific nation of Samoa became at the center of scrutiny after ministers had invited OneCoin to speak to its congregation. Notably, Samoa’s …

Ads pertaining to blockchain tech, industry news, as well as events and educational materials for cryptocurrencies can now be displayed on Facebook without prior approval. The social media giant announced the development on Facebook Business on May 8. This marks a change from last year, when Facebook implemented a policy that required crypto and blockchain promoters to get prior consent before they could run advertisements. The press release goes on to specify that this change will not apply to advertisements that seek to promote a particular cryptocurrency, and ads for initial coin offerings (ICOs) remain forbidden. The stated purpose of …

A New Zealand church accused of colluding with a cryptocurrency Ponzi scheme in targeting the congregation, has denied knowingly participating in illegal activity in a Facebook statement on May 2. The Samoan Independent Seventh Day Adventist Church (SISDAC) is one of two places of worship accused of having links to OneCoin, which raised hundreds of millions of dollars worldwide by luring investors with the promise of huge returns. According to RadioNZ, the scam specifically targeted New Zealand’s Samoan community — with OneCoin workers using SISDAC and the Samoa Worship Center “to reach a vast network of would-be investors.” One woman …

A church in the Pacific nation of Samoa is at the center of scrutiny after ministers invited notorious cryptocurrency Ponzi scheme OneCoin to preach to its congregation, New Zealand-based media network Radio NZ reported on April 26. OneCoin, which is now all but defunct after the indictment of both its masterminds, raised hundreds of millions of dollars worldwide by luring investors with the promise of huge returns. Samoa’s central bank banned any activities involving the scheme in 2018, but representatives nonetheless succeeded in approaching the Samoa Worship Centre and pitched their likely fraudulent investment product to members. A number of …

South Korean police have arrested suspects behind a cryptocurrency ponzi scheme using artificial intelligence (AI), local English-language news outlet Korea Joongang Daily reported on April 8. The scheme, which reportedly stole a total of 21.2 billion won ($18.3 million) over a six-month period in 2018, came to an end after the Seoul Special Judicial Police Bureau for Public Safety trained robots to catch those involved using keywords and other clues. “Through keywords such as Ponzi, loan and recruiting members, we were able to teach the AI patterns of Ponzi schemes,” Hong Nam-ki, section chief of the bureau’s second investigation team, …

The Supreme Court of India has granted interim bail to two brothers who are among the chief suspects accused of running a Bitcoin (BTC)-related Ponzi scheme. The development was reported by Indian tech startup news source Inc42 on April 3. Amit Bhardwaj and his brother, Vivek Bharadwaj, have succeeded in their appeal for interim bail, which they had reportedly requested in November 2018, with Amit asked to deposit ₹10 crores (~$1.5 million) for the bail, Inc42 writes. As previously reported, the Bhardwaj brothers had been arrested on April 4, 2018 for allegedly defrauding around 8,000 investors out of ₹2,000 crores …

The United States Federal Bureau of Investigation (FBI) is seeking to contact investors in alleged ponzi scheme Bitconnect (BCC) that collapsed in January last year, a news statement confirmed on Feb. 20. As part of ongoing investigations into the activities of the well-known but shadowy scheme, the Cleveland branch of the U.S. law enforcement agency appealed to ex-investors to give information about their interaction with Bitconnect. A dedicated questionnaire is already available online, Special Agent Vicki D. Anderson explaining that responses would assist investigators in identifying those affected by monetary loss. “The FBI is seeking potential victims who invested in …

According to a recent report from crypto analytics specialists Chainalysis, Ethereum (ETH) has become the crypto platform of choice for scam artists. Its research suggests that 2018 saw far more sophisticated, higher-earning scams carried out using ETH, although the actual number of these crimes dropped significantly year on year. The amount stolen through ETH-based scams doubled from $17 million in 2017 to $36 million in 2018. This equates to 0.01 percent of ETH in circulation. Chainalysis identified over 2,000 scam Ethereum addresses, which have managed to secure funds from nearly 40,000 unique users in the network. In the space of …

About $1.7 billion in cryptocurrency had been obtained via illicit means in 2018, according to research published by crypto analytics company CipherTrace on Jan. 29. Of that $1.7 billion, over $950 million was stolen from crypto exchanges, representing a 3.6 times increase over 2017. On the other hand, at least $725 million was lost in 2018 to scams such as ponzi schemes, exit schemes and fraudulent initial coin offerings (ICOs). CipherTrace also listed what the company believes to be the top ten cryptocurrency threats: the highest is SIM swapping, which is a kind of identity theft involving taking control over …

The value of Ethereum (ETH) stolen via scams reached $36 million 2018, according to a report released by crypto analytics company Chainalysis on Jan. 23. According to the Chainalysis report, scams that occurred last year were reportedly more sophisticated, bigger and vastly more lucrative. Chainalysis also reports that Ethereum has “long been known as the cryptocurrency of choice for scams.” Chainalysis reports that the value of stolen funds more than doubled in 2018, compared to the $17 million in ETH obtained through scams in 2017. The increase in profits occurred despite the fact that the number of scams declined compared …

United States crypto-focused law firm Silver Miller has filed a lawsuit against a purported crypto hedge fund manager who was allegedly operating a fraudulent Ponzi scheme. The court documents were published to the Silver Miller website Dec. 26. The case — which has been filed at the Court of the Southern District of New York on behalf of multiple plaintiffs who invested in the scheme — alleges that Jeremy Spence, alongside a small cohort of accomplices, orchestrated a fake entity called “Coin Signals.” Spence is alleged to have deceptively represented himself as a successful crypto trader. He reportedly offered investors …