A cryptocurrency staking wallet that offers users as much as 1.5% daily returns is bearing striking resemblance to a Ponzi scheme. That’s according to a Medium article published on April 19 by Jan Kowalski which warns readers to steer clear of an app known as StakedWallet. The website offers Proof-of-Stake “investment opportunities” wherein the user’s daily payout increases the longer they keep their funds staked. Staking payouts begin at 0.6% per day, and increase to 1.5% after nine months. Seemingly effortless daily returns such as these have been a hallmark of almost all well-known cryptocurrency scams in the past, including …

Popular Ethereum (ETH) block explorer Etherscan has launched a machine-learning powered surveillance engine to flag ETH and wallets that are associated with illicit activity. Wallets that have originated from illegal sources will now be blacklisted — allowing users to identify when coins they are receiving have a checkered history. Etherscan blacklists funds of illegal origin Etherscan announced its ETHProtect detection system in a blog post on April 14. ETHProtect will generate “daily user reports on suspicious fraudulent activities” which will be reviewed and verified by Etherscan’s security research analysts. The detection system is designed to identify funds associated with hacks, …

U.S. District Judge Valerie Caproni has scheduled an April 16 hearing for the representation of the plaintiffs’ in a class action suit against the $4 billion crypto Ponzi scheme, OneCoin, to justify why the case should continue. The date was set on April 10 after the plaintiffs missed multiple deadlines to file consecutive monthly status reports. Lead plaintiff missed two consecutive reporting deadlines Law firms Levi & Korinsky LLP and Silver Miller will have to justify why a $4 billion class-action suit against OneCoin should continue after its lead plaintiff, Donald Berdeaux, again failed to meet the court’s deadline for …

Sentencing for the co-founder of the major crypto scam OneCoin has been postponed for a further three months at the request of the United States government. On April 7, the New York Southern District Court approved a motion to adjourn the sentencing control date for Konstantin Ignatov, brother and accomplice of OneCoin co-founder and current fugitive Ruja Ignatova, a.k.a the "Cryptoqueen." Originally set for April 8, Ignatov’s sentencing date will now take place on July 8, 2020. Ignatov’s cooperation as a witness As reported, OneCoin is among the industry’s most infamous exit scams. Founded in 2014, the Bulgaria-based firm remained …

Q3 Investment Recovery Vehicle (Q3IRV), an entity representing the more than 100 victims of the alleged $35 million Q3 Ponzi scheme, has filed a class-action lawsuit against Wells Fargo Advisors. The suit accuses Wells Fargo of failing to inquire into the activities of an employee accused of co-masterminding the scam. The plaintiffs assert that the Wells Fargo subsidiary failed to make appropriate inquiries into its financial advisor James Seijas — as per the firm’s policy mandating employees to regularly report activities relating to outside interests. Crypto Ponzi victims sue Wells Fargo for vicarious liability Q3IRV is seeking damages and interest …

The United States Commodity Futures Trading Commission (CFTC) has requested that the alleged founder of the crypto $147 million Ponzi scheme Control-Finance be declared a default. On April 3, the CFTC filed for a ruling of default after Control-Finance’s alleged founder and director, Benjamin Reynolds, did not respond to the regulator’s complaint. CFTC unable to locate Reynolds after 10 months The CFTC’s complaint was filed during June 2019 — alleging that Reynolds misappropriated at least 22,858 BTC from more than 1,000 customers from May 1, 2017. In January 2020, the SEC requested additional time to locate Reynolds amid an ongoing …

The Philippines Securities and Exchange Commission (SEC) warned of a crypto Ponzi scheme targeting Filipino, Australian, and European investors on March 30. The scheme, Bitcoin Revolution, comprises a classic Ponzi in which investors are offered exorbitant compounding daily returns on deposited funds. Bitcoin Revolution claims to have software that produces trades with a success rate of between 88% and 95% — offering a path to seven-figure status over just 61 days. From an initial deposit of just $250, the scammer claims that investors can earn 300% per day or 9,000% per month. Bitcoin Revolution brokers face 21 years in prison …

New Jersey federal prosecutor Craig Carpenito is fighting the request of two alleged crypto scammers to be released from a county jail amid the coronavirus pandemic. According to court documents filed with the United States Department of Justice on March 24, Carpenito asserted that the recently enacted Bail Reform only preferences pretrial release of a defendant when their appearance at trial could be reasonably assured. Carpenito noted that COVID-19 has sparked a “national conversation” regarding whether pretrial detainees accused of nonviolent crimes should be released, in order to reduce the risk of coronavirus rapidly spreading in U.S. jails. However, he …

Two alleged crypto Ponzi scheme operators have requested that a New Jersey federal court grant their release from jail over concerns that the facility will soon host a COVID-19 outbreak. Matthew Goettsche and Jobadiah Weeks submitted separate motions petitioning the Essex County Correctional Facility in Newark, New Jersey for their release on March 20 and 23, respectively. Goettsche’s attorney, Rodney Villazor, said, “it is not a matter of ‘if’, but ‘when’” the corrections facility hosts a coronavirus outbreak. He argues that once the virus reaches the jail, “it will be nearly impossible to stop its spread,” adding that “the risk …

Some authorities think current traditional market instability lies behind Bitcoin’s (BTC) recent plunge, while others feel the alleged PlusToken scam is the cause. Bill Herrmann, CEO of alternative investment banking firm Wilshire Phoenix, believes Bitcoin’s recent bearishness is simply due to traditional market instability. “The recent drop in the price of bitcoin is a result of the sudden and fierce decline among most asset-classes over the last several weeks,” he told Cointelegraph, adding: “In times of extreme volatility, which is often followed by panic — most retail investors, whether it’s Bitcoin or in equities, sell first and ask questions later. …

Legendary soccer player Ronaldinho Gaúcho was ‘arrested’ trying to enter Paraguay with a fake passport. One of the greatest soccer players in the history of the sport and now under investigation for participation in companies accused of running cryptocurrency scams using his name, Ronaldinho Gaúcho, was detained on March 4, in Paraguay, according to Cointelegraph Brazil. The Paraguayan National Police reportedly entered the hotel suite where the former ace was staying at the Paraguay Golf Club and found two false Paraguayan passports in his name and his brother Roberto de Assis Moreira’s. The player went to the country to participate …

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 …