Stay Clear of These Blacklisted Companies Which Have Been Conducting Crypto Currency Related Scams

Category: Crypto Scams
Length: 18 Pages
Reading Time: 35 Mins

Excerpt: The risk associated with any investment is the same for all, but some experts believe that cryptocurrency is one of the more risky investment options available today. In the event that you decide to invest in cryptocurrencies, make sure to conduct thorough research and avoid fraudulent companies such as those mentioned in this article and others such as Bimcoin, AIZeus, Bytecoin, and Capital Expanse, to name a few.

April 11, 2022

Introduction

Cryptocurrency is a type of digital currency that can only be obtained through electronic means in the majority of cases. In the case of a cryptocurrency exchange service that allows you to exchange cryptocurrency for physical tokens, you will not be able to hold a physical coin or bill in your hand. Rather than going through a third party such as a bank or other financial institution, you typically exchange cryptocurrency with someone online, using your phone or computer, rather than in person. Even though Bitcoin and Ether are well-known cryptocurrencies, there are a plethora of other cryptocurrency brands, and new ones are constantly being developed. 

There are many reasons why people use cryptocurrency, including making quick payments, avoiding transaction fees charged by traditional banks, and maintaining some level of anonymity. Those who hold cryptocurrency as an investment do so in the hope that the currency’s value will rise. A cryptocurrency exchange platform is a place where you can make purchases of digital currencies such as bitcoin. Bitcoin and other cryptocurrencies can be earned through a time-consuming process known as “mining,” which necessitates the use of high-end computer equipment to solve extremely difficult mathematical puzzles.

Scammers took home a record $14 billion in cryptocurrency in 2021, thanks in large part to the rise of decentralized finance (DeFi) platforms

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Table of Contents

The Concept of Digital Wallets

crypto pig

When storing cryptocurrency, digital wallets are used. These wallets can be found online, on your computer, or even on an external hard drive, depending on your preferences. But in the event of a surprise event such as the failure of a cryptocurrency exchange platform or the delivery of digital currency to the incorrect recipient, or the loss, theft, and/or compromise of a cryptocurrency digital wallet or its associated funds, you will almost certainly be unable to recover your funds from your lost or stolen cryptocurrency digital wallet. 

Furthermore, because cryptocurrency is typically transferred directly between parties rather than through an intermediary such as a bank, there is often no one to turn to in the event of a problem involving the cryptocurrency transaction. There are significant differences between cryptocurrency and traditional currency when compared to each other. In the absence of a government, cryptocurrency accounts are virtually impossible to track down. Cryptocurrency accounts, like bank accounts in which U.S. dollars are deposited, are not insured by the federal government, unlike bank accounts. Providing assistance in recovering your cryptocurrency if it is placed in possession of a third-party company that goes out of business or has its security compromised is not the responsibility of the federal government. 

Every day, the value of cryptocurrencies fluctuates in a predictable manner. The value of a cryptocurrency can fluctuate dramatically, sometimes changing on an hourly basis, depending on the market. It is influenced by a wide range of factors, including supply and demand, among others. An investment that is currently worth thousands of dollars may only be worth a few hundred dollars tomorrow if you make it today. Even if the value decreases, there is no guarantee that it will rise again in the future.

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Is CryptoCurrency The Future of Finance?

Payment with cryptocurrency is not the same as paying with a credit card or other traditional payment methods, so those considering it should be aware of this. It is not possible to obtain legal protections for cryptocurrency payments. The law provides protection for you if something goes wrong with your credit card or debit card transaction. In the event that you need to dispute a purchase, your credit card company has a procedure in place to assist you in reclaiming your funds. Cryptocurrencies, on the other hand, are not typically backed by any government. 

Most cryptocurrency payments are non-reversible due to the nature of the technology. Following a cryptocurrency payment, you will almost always be able to get your money back if the person who received your payment sends it back to you in the same form that you sent it. Before making a cryptocurrency purchase, take into consideration the seller’s reputation and geographic location.

Additionally, you should know how to get in touch with someone in the event that there is a problem with your purchase. Perform some online research before making a payment to double-check the accuracy of the information provided. Most likely, some information about your transactions will be made available to the general public. Anonymity is frequently used to refer to transactions involving cryptocurrency. Despite popular belief, the reality is more complicated. “Cryptocurrencies” are digital currencies that store some transaction details in an open ledger known as a “blockchain,” which is accessible to anyone who has access to the internet. 

bitcoin emblem

The Bitcoin Foundation keeps a public record of every cryptocurrency transaction that takes place — on both the payment and receipt sides. Assuming the cryptocurrency in question is a digital currency, information added to the blockchain may include specifics such as a transaction amount and the wallet addresses of both the sender and receiver. 

Your digital wallet is identified on the internet by a long string of numbers and letters known as a PIN. Though it is possible to register a digital wallet under an assumed name, it is possible to identify the people who participated in a particular transaction by using transaction and wallet information. Furthermore, suppose you purchase something from a seller who also collects additional information about you, such as your shipping address. In that case, that information can be used to identify you later on in the process.

In order to steal your money through the use of cryptocurrency, scammers are constantly inventing new methods of stealing it. A scam artist is someone who tells you that you must pay with cryptocurrency in order to complete your transaction. Anyone who requests payment through wire transfer, gift card, or cryptocurrency, to be more specific, is a scam artist. Of course, if you pay, there is almost no way to get your money back if you don’t want to. Con artists are counting on people falling for their ruse. Listed below are a few examples of cryptocurrency scams to keep an eye out for. It is the claim of some businesses that you can make a substantial amount of money in a short period of time and achieve financial independence. 

bitcoin gold background

A number of scammers will ask you to make a cryptocurrency payment in exchange for the right to recruit others into a program that they are promoting. It is claimed that if you do so, you will be rewarded with recruitment bonuses in the form of cryptocurrency. According to their calculations, the more cryptocurrency you pay, the more money they guarantee you will make. Every one of these promises and guarantees, on the other hand, is made up out of whole cloth.

Victims are initially approached by scammers who make them uninvited offers from fictitious “investment managers.” If you hand over the cryptocurrency you’ve purchased, these con artists claim that they will be able to assist you in expanding your wealth. The only problem is that once you log into the “investment account” that they set up on your behalf, it becomes clear that you will be unable to withdraw your money unless you pay additional fees. 

Job offers for cryptocurrency investors, the sale of cryptocurrency, the mining of cryptocurrency, and the conversion of fiat currency to bitcoin are all common scams. Some scammers send unsolicited job offers for cryptocurrency investors, the sale of cryptocurrency, the mining of cryptocurrency, or the conversion of fiat currency to bitcoin. Scammers use job search websites to post fictitious job openings. In the end, they will take your money or personal information after promising you a job (in exchange for a fee).

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Scammers & Fraudsters Are Now Targeting The Crypto Market

The promise made by scammers is that if you fall for their trap, you will profit financially. It is a scam if they make you believe that you will make money from their offer. No matter if there is a celebrity endorsement or customer testimonials, this is true. (Though those can be easily made, they are not necessary.) With a high probability of success, they guarantee large payouts. It is impossible for anyone to guarantee a specific rate of return, such as doubling your investment. The amount of time has been reduced significantly. Besides that, they make unsubstantiated claims of giving away free money. 

They’ll make the promise in either cash or cryptocurrency, but free money promises are almost always a ruse. Scammers make outrageous claims without providing any evidence or explanations to back up their claims. When it comes to their business, people who are serious about it want to know how their investment works and where their money goes. Aside from that, good investment advisors are eager to share their expertise with their clients. Before making a decision, take a look at the information provided there. Investigate the company and cryptocurrency names on the internet, as well as words like “review,” “scam,” and “complaint” in the search results to see if there are any complaints. Have you ever wondered what others have to say about a subject?

Because cryptocurrency is all the rage these days, and people of all ages are looking to invest in it in order to make large sums of money, it is critical to learn and fully understand what cryptocurrency is in order to increase the likelihood of making profitable returns rather than suffering catastrophic losses. Please read on for more information on cryptocurrencies and cryptocurrency scams, including the different types of crypto scams, the history of cryptocurrency scams, and how to avoid falling victim to one of these scams.

CHAPTER 1: What is Cryptocurrency?

Bitcoin, also known as crypto-currency or crypto, is a type of digital or virtual currency that makes use of cryptography to ensure that transactions are secure. A digital currency or virtual currency is a term that is used to refer to this type of money. Contrary to traditional currencies, which are issued and regulated by central authorities, digital currencies, such as bitcoin, are issued and regulated by a decentralized system that records transactions and issues new units, as is the case with traditional currencies. Bitcoin, in contrast to traditional payment systems, does not require banks to verify transactions. This is because cryptocurrency does not require banks to verify transactions. 

There are no middlemen involved, and anyone can send and receive payments with relative ease from anywhere in the world. A cryptocurrency payment is not a physical item that can be carried around and exchanged in the real world; instead, it is a series of digital entries in an online database that describe a specific transaction, similar to how credit cards operate. When cryptocurrency funds are exchanged, transactions involving those funds are recorded in a public ledger, which is accessible to anyone. When it comes to storing digital currency, digital wallets have become popular. A coinage of the term “cryptocurrency” was made due to the fact that transactions in cryptocurrency are verified through the use of encryption technology. 

That is to say, advanced coding is required for the storage and transmission of cryptocurrency data between wallets and between wallets and public ledgers, as well as between wallets and private key infrastructure. The goal of data encryption is to ensure the security and safety of information transmitted over networks. In 2009, Bitcoin was created and is still the most well-known cryptocurrency, despite the fact that it is not the first. Many people’s interest in cryptocurrencies is motivated by the desire to make a profit, with speculators driving prices up to dizzying heights at various points.

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When it comes to cryptocurrency transactions, they are recorded on a distributed public ledger known as the blockchain, which is updated and maintained by the currency holders. An operation known as mining must be performed in order to generate cryptocurrency units, and this process entails the use of computational resources to solve complex mathematical problems, the solution of which results in the generation of cryptocurrency units. Users can also purchase the currencies from brokers, then store and spend them through the use of cryptographic wallets, which are becoming more popular. 

It is important to note that if you hold cryptocurrency, you do not actually hold anything tangible in the traditional sense. An encryption key allows you to transfer data or units of measurement from one person to another without the need for the involvement of a third party you can put your faith in. The fact that Bitcoin has been around since 2009 does not diminish the fact that cryptocurrencies and blockchain technology applications are still in their infancy in terms of financial applications, with more applications expected in the future. As a result of recent technological advancements, it is possible that bonds, stocks, and other financial instruments will be traded in the future.

Tens of thousands of different cryptocurrencies are available to use today. Bitcoin, ethereum, litecoin, ripple, stablecoins, and altcoins are just a few of the well-known cryptocurrencies. As the world’s first cryptocurrency, Bitcoin, which was created in 2009 and is still the most widely traded, was the first to be created. The cryptocurrency, which was created by Satoshi Nakamoto, who is widely believed to be a pseudonym for an individual or group of people whose precise identity remains unknown, is a form of payment. Ether (ETH) or Ethereum, on the other hand, is a blockchain platform that was created in 2015 and that has its own cryptocurrency, known as Ether (ETH) or Ethereum. 

going up chart

It is the second most widely used cryptocurrency after Bitcoin, and it is growing in popularity. Though most similar to bitcoin, litecoin has moved more quickly to develop new innovations, such as faster payments and processes that allow for a greater number of transactions to be processed. It was first introduced in 2012, and it is still in use today. Ripple is a distributed ledger system that was first introduced in 2012. Aside from tracking cryptocurrency transactions, Ripple can also be used to track a variety of other types of financial transactions. It has been developed in collaboration with a number of different banks and financial institutions by the company that developed it. In cryptocurrency terms, stablecoins are digital assets that are intended to maintain a consistent level of purchasing power over time.

To distinguish them from bitcoin, alternative cryptocurrencies (which include tokens, cryptocurrencies, and other types of digital assets other than bitcoin) are referred to as “altcoins,” “alt coins,” and other similar terms. The Wall Street Journal’s Paul Vigna referred to altcoins as “alternative versions of bitcoin” because bitcoin serves as a model protocol for altcoin developers. After bitcoin was first introduced, the term was commonly used to refer to coins and tokens that were created after that time. In their underlying principles, alternative cryptocurrencies (altcoins) frequently differ from bitcoin in their use of technology. The fact that Litecoin aspires to process a block every 2.5 minutes, rather than every 10 minutes as Bitcoin, means that Litecoin can confirm transactions significantly more quickly than Bitcoin.

Another example is Ethereum, which has smart contract functionality that allows decentralized applications to be run on its blockchain. Ethereum is a cryptocurrency that has been around since 2009. Ethereum has been in existence since 2009 and is a type of cryptocurrency. 

The most widely used blockchain technology, according to Bloomberg News, will be Ethereum in the year 2020. Based on reports from The New York Times, it had the most “following” of any alternative cryptocurrency in 2016. Alt Season is a term that refers to a period in which significant gains have been made across the alternative cryptocurrency markets. Cryptocurrencies that are not Bitcoins are referred to as “altcoins’ ‘ in order to distinguish them from the Bitcoin cryptocurrency that started it all.

Forex-Scam

CHAPTER 2: Essential Details Regarding Cryptocurrency That All Investors Should Know

In most cases, when you hear the term cryptocurrency, you think of it as a type of digital currency that is designed to function as a medium of exchange over the internet and is not reliant on any central authority, such as a government or a financial institution, to support or maintain its operations. Individual coin ownership records are stored in a digital ledger, which is a computerized database that employs strong cryptography to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership. 

The digital ledger is used to protect transaction records, control the creation of additional coins, and verify the transfer of coin ownership. Despite the fact that cryptocurrencies are not necessarily considered to be currencies in the traditional sense, and despite the fact that they have been classified in a variety of ways, including as commodities, securities, and currencies, in practice, they are generally regarded as a completely separate asset class from other types of securities and commodities. Some cryptographic schemes rely on validators to ensure that the cryptocurrency remains operational. 

Proof-of-stake models require token owners to put their tokens up as collateral, whereas proof-of-work models do not. In exchange, they receive authority over the token in a proportional amount to the amount of money they have put into the project. These token stakes typically gain additional ownership in the token over time as a result of network fees, newly minted tokens, or other similar incentive mechanisms that are implemented. Cryptocurrency is a digital asset that, unlike paper money, does not exist in its physical form and is not issued by a government or other authority. When compared to digital currencies issued by central banks, cryptocurrency controls are typically exercised through a decentralized system (CBDC). 

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The application of censorship to digital currencies is generally restricted when they are in the process of minting or creating prior to release or when they are issued by a single issuer, among other things. Whenever a cryptocurrency is implemented with decentralized control, it operates through distributed ledger technology, which is typically a blockchain, which serves as a public financial transaction database for the entire world to see. When a cryptocurrency is implemented with decentralized control, it operates through distributed ledger technology, which is typically a blockchain. 

Bitcoin, in the world of digital assets and money, is a tradable digital asset or digital form of money that is built on blockchain technology and is only available online. In the world of digital assets and money, a cryptocurrency is a tradable digital asset or digital form of money that is only available online. Cryptocurrencies, as the name implies, are digital assets that use encryption to authenticate and protect transactions, earning them the designation. Around the world, over a thousand different types of cryptocurrencies are being used at any given point in time. Bitcoin, a decentralized cryptocurrency, was the first to be developed and released as open-source software in 2009, making it the first cryptocurrency. There have been a plethora of new cryptocurrencies developed since the introduction of bitcoin in 2009.

According to Jan Lansky, a cryptocurrency is a system that satisfies the six primary requirements listed below. A centralized authority is not required; the system’s current state is maintained through distributed consensus among its participants. The system keeps track of the total number of cryptocurrency units in circulation, as well as who owns each one of those units. The system is in charge of determining whether or not new cryptocurrency units are permitted to be created. Whether or not new cryptocurrency units can be created, the system specifies the circumstances under which they were created, as well as how to determine who is the legal owner of the newly generated cryptocurrency units.

Gold Coins

The only way to establish ownership of cryptocurrency units is through the use of cryptographic methods. Transactions in which the ownership of cryptographic units is changed are permitted to be completed through the use of the system, according to the rules. A transaction statement can only be issued by an entity that can demonstrate that it currently owns the units that are the subject of the transaction statement. Suppose two different instructions for changing ownership of the same cryptographic unit are entered at the same time. In that case, the system is only capable of executing one of the instructions by default. The word “cryptocurrency” was officially added to the Merriam-Webster Dictionary in March of 2018.

It is created by the entire cryptocurrency system collectively, at a rate that is defined at the time of system creation, and it is made publicly available to the general public. In centralized banking and economic systems, such as the United States Federal Reserve System, the supply of currency is controlled by corporate boards of directors or by the governments of the countries involved. Companies or governments are unable to create new units of decentralized cryptocurrency, and they have not yet provided backing for other firms, banks, or corporate entities that have assets valued in the cryptocurrency. One of the most important technical systems on which decentralized cryptocurrencies are built was developed by a group or individual known as Satoshi Nakamoto, who is also widely recognized as the founder of Bitcoin. As of May 2018, there were over 1,800 different cryptocurrency specifications. 

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Bitcoin, and other similar cryptographic systems, rely on the cooperation of parties who are mutually distrustful of one another, known as miners. Miners use their computers to help validate and timestamp transactions, adding them to the ledger in accordance with a specific timestamping scheme to ensure the safety, integrity, and balance of ledgers in a proof-of-work cryptocurrency system such as Bitcoin. In a proof-of-stake (PoS) blockchain, transactions are validated by holders of the associated cryptocurrency, who are sometimes pooled together in stake pools to increase the likelihood of a transaction being successful. 

Numerous digital currencies, such as bitcoin, are designed to gradually reduce the amount of currency that is produced, effectively capping the total amount of currency that has ever been produced and made available for distribution. Comparing cryptocurrencies to traditional currencies held by financial institutions or cash on hand, it is possible that cryptocurrencies will be more difficult to seize by law enforcement agencies than traditional currencies.

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Blockchain

A blockchain ensures the legitimacy of each cryptocurrency’s coins by verifying their transaction history. A blockchain is a continuously growing list of records, referred to as blocks that are linked together and secured using cryptographic techniques. Typically, each block contains a hash pointer that serves as a link to a previous block, along with a timestamp and transaction data. Blockchains are inherently resistant to data modification because of the way they are built. 

A distributed ledger that “can record transactions between two parties efficiently and in a verifiable and permanent manner” is defined as “an open, distributed ledger.” When used as a distributed ledger, a blockchain is typically managed by a peer-to-peer network that works together to validate new blocks in accordance with a predetermined protocol. As soon as data is recorded, it cannot be changed retroactively without affecting all subsequent blocks, which requires the agreement of the majority of the network’s participants. Inherently secure, blockchains are an example of a distributed computing system with high Byzantine fault tolerance, as demonstrated by the Bitcoin network. Because of this, the blockchain has been used to achieve decentralized consensus.

Cryptocurrency

Nodes

In the world of cryptocurrency, a node is a computer that is connected to a cryptocurrency network, which is referred to as an instance of a node. An individual node participates in the blockchain of an electronic currency by either relaying or validating transactions or by hosting a copy of the blockchain on its own computer or network. A copy of the blockchain underlying the cryptocurrency that each network computer (node) supports is maintained by each network computer (node) in order to relay transactions. 

Upon successful completion of a transaction, the node that initiated the transaction broadcasts the transaction’s details through the node network to other nodes throughout the node network, ensuring that the transaction (as well as every other transaction) is known to all other nodes throughout the node network. There are three types of node owners: volunteers, those who are hosted by the organization or body responsible for developing cryptocurrency blockchain network technology, and those who are enticed to host a node in order to receive rewards for hosting the node network. Volunteers are node owners who give their time and energy to the cryptocurrency blockchain network technology. Node owners are also referred to as node operators in some circles.

one holding a 50 dollar bill and a bitcoin for another

CHAPTER 3: Top 4 Crypto Scam – Blacklisted Companies

Unfortunately, there are cryptocurrency brokers out there who are looking to take advantage of unsuspecting customers on a daily basis. In the following section, you will find a list of websites and trading companies that are involved in fraudulent cryptocurrency activities. Bitcoin scams, cryptocurrency scams, phony initial coin offerings (ICOs), forex crypto scams, and other trading companies that engage in fraudulent activities involving cryptocurrency are all included.

Adrenaline Coin

Following the latest Adrenaline Coin review, it has been determined that the company is operating illegally and without a valid financial regulatory license.

If your account has been blocked by Adrenaline Coin, and you are unable to log into your account, that is certainly one of the many red flags to look out for. A few other warning signs to look out for are if your account with Adrenaline Coin has been frozen, your bank account has been debited for the amount specified, the website for Adrenaline Coin has been taken down, Adrenaline Coin is not picking up the phone to take your calls, you have become aware that Adrenaline Coin has taken money from your bank account without your permission. As a result, Adrenaline Coin is providing you with an incentive, or if Adrenaline Coin is requesting that you deposit additional funds into your account after you experienced a significant loss of funds.

Other than these main signs to look out for, it is important to remember that an unexpected communication is received, and you are unable to determine who or from where it originated. The communication contains a request for you to perform a task, such as attempting to obtain your personal information. Apart from this, if there are spelling and grammatical errors in the communication, the communication contains a suspicious link or attachment, which you are urged to click on, the communication creates a sense of urgency for you to act immediately. Failure to act could result in the loss of sensitive information or the loss of an amazing special opportunity; if you do not act immediately, a suspicious phone call from someone claiming to be from the government and requesting a monetary payment has been received by you, you need to beware.

shib coin

A phone call from someone claiming to be from the Internal Revenue Service (IRS) or a tax authority, demanding payment for unpaid taxes, a request for money to be sent to settle a debt, pay taxes, or pay any other amount owed, and for money to be sent via courier, prepaid bank card, or gift card, a phone call in which you are asked for personal information, banking, credit card, or investment account information is received, a phone call from an unknown number with an incredible offer and the pressure to act immediately in order to secure it are a few more things to be wary of.

Airbon

The likelihood that you have been scammed or that you are a victim of a scam increases the more you come across Airbon. The characteristics of an excellent broker include not only being regulated but also having a positive reputation, offering excellent trading conditions, and providing exceptional customer service. The general rule of thumb is that you should never subscribe to a broker who is not regulated. Such brokers are only required to provide easy access to trading instruments; they are not required to provide any other services.

You are informed that the trader will trade on your behalf; however, regulated brokers are not permitted to trade on your behalf. In the event that you receive a phone call from a specific broker but you have never registered with him, you should ignore the call. On the Internet, there is no sign of a broker. You should be wary of scams if you can’t find much information about the so-called broker online. If you make an investment with one of these brokers, you have undoubtedly been duped. To report fraud, please fill out this complaint form, and a representative from our company will contact you shortly. 

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Broker scams and forex trading scams are most commonly identified by the fact that the broker is either not regulated at all or has a regulatory license that is of low quality. Even if there are errors when logging in, the broker must have the resources to correct the situation in the shortest amount of time possible in order to avoid losing out on trading opportunities that may arise. Users should be able to access their accounts and trade with ease if the trading platform provided by the broker is simple and intuitive to use. User-friendliness and simplicity are essential for a trading platform to assist users in their daily trading activities. The broker must have a cutting-edge trading platform that is supported by advanced analytical tools and the most up-to-date forex trading technology.

There is no need to be concerned if you are unable to access your broker account. A professional broker will never purposefully deny a user access to their own account. The absence of communication methods such as email, phone, text messaging, and chat, as well as the presence of a support team that does not appear to understand the trade or who is evasively asking certain questions, could indicate that the broker is a scam or at the very least a low-quality broker. When dealing with clients, some less-than-honest brokers will be aggressive and push them to make certain trades. In some Forex trading scams, the fraudulent broker will only provide their own platform, which may or may not turn out to be a fake platform. 

Never assume that Airbon is legal simply because the website has a friendly chat bot that greets you when you first visit it or because the broker pays you a lot of attention in the first few weeks after you sign up. If you are interested in trading foreign exchange, cryptocurrency, CFDs, or commodities, paying close attention to the broker with whom you transact can help you avoid broker withdrawal problems as well as broker fraud, which can be very costly. A wide range of trading products may be offered by some brokers, whereas other brokers may specialize in a specific area, such as foreign exchange trading. The accounts of most brokers are structured differently depending on the amount of the transaction. Because leverage is inversely proportional to risk, it is only available in small amounts.

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The tradition of accepting large minimum deposits, on the other hand, is extremely common among scammers, whose primary goal is to steal as much money as possible from a trader before he becomes suspicious. More offensive still, the minimum deposit required for a bronze account allows you to access more features from more reputable and regulated foreign exchange brokers for the same amount of money. If Airbon requests an amount that is significantly higher than the norm, it is more likely that Airbon is a scam. 

In spite of this, a great deal of attention must be paid to this factor because it is frequently an area where people are duped by brokerage scams. It is possible that if you sign up quickly, the broker will offer you transactions, or they may tell you that if you do not open an account right away, the opportunity to make a lot of money will disappear in a day or two.

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Airfio

So many scams are now posing as initial coin offerings (ICOs). Airfio.com is one of those shady websites that sell tokens to unsuspecting customers. Airfio claims that it wishes to revolutionize the world of cryptocurrency banking and the fintech industry in which it operates. Using neural networks in conjunction with blockchain technology, the company hopes to accomplish this goal. According to the claims, this will result in increased security and a more seamless operation of the interface. Airfio also claims to have a long-term vision for its business. However, the majority of their short-term objectives (such as installing ATMs in approximately seven countries around the world) were expected to be completed by 2020.

What’s more, Airfio was allegedly established in order to streamline financial transactions through the use of blockchain technology. They are expected to facilitate financial transfers, issue debit cards, and perform a variety of other tasks. They have the potential to be the future of cryptocurrency banking (just like every other ICO has always promised). There is nothing groundbreaking about this. Lots of things are supposed to be going on here, and they are all interesting. In addition to offering ARF coin, they are also offering Visa cards, a mining app, an SDK for developers, a decentralized exchange, and a variety of other products and services.

digital decentralized

According to the website, all of the platforms and functions mentioned above were created using artificial intelligence technology. We have no way of knowing how accurate this is. And even if it were true, we don’t see any reason why artificial intelligence would be required in this situation. The question we are posing is why people would require every function of their bank to be powered by artificial intelligence technology. They claim that this is the first time that blockchain technology and artificial intelligence have been brought together, but we can’t see any meaningful connection between the two technologies here. 

Airfio also claims to provide a smart wallet that enables peer-to-peer transactions to be completed quickly, securely, and anonymously. This wallet, too, is said to be equipped with artificial intelligence and to have a variety of cutting-edge features. These features are intended to provide some sort of benefit to the user in some way. In one of the features mentioned by Airfio, it is possible to create up to ten different addresses in a single wallet.

In addition to this, Airfio users can make use of a special Visa Card that has been developed in order to synchronize the services provided by this platform with those provided by a traditional ATM system. The Visa card can be used anywhere in the world, as long as the outlet accepts Visa cards, which is nearly everywhere. While this website refers to it as a Visa card, we can see very clearly on their website that it is, in fact, a MasterCard card because there is a MasterCard logo displayed instead of the Visa logo. We’re not sure what’s causing the confusion. As a result of the confusion, it is unclear which network this card will be connected to. The card, according to them, was scheduled to be released in the second quarter of 2018.

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bitcoin

OneCoin

When it comes to cryptocurrency, OneCoin is a Ponzi scheme run by Bulgaria-based offshore companies OneCoin Ltd (registered in Dubai) and OneLife Network Ltd (registered in Belize), both of which were founded by Ruja Ignatova in collaboration with Sebastian Greenwood and promoted as a cryptocurrency. OneCoin is considered a Ponzi scheme due to the organizational structure of the company and the previous involvement of many of the people involved in OneCoin in similar schemes, both of which have occurred. According to the New York Times, it was “one of the biggest scams in the history of the world.” 

According to U.S. prosecutors, the scheme brought in approximately $4 billion in total revenue around the world. In China, law enforcement recovered 1.7 billion yuan (US$267.5 million) from 98 people who were prosecuted for various crimes. Ruja Ignatova vanished in 2017, around the time a secret U.S. arrest warrant was issued for her, and her brother, Konstantin Ignatov, took over as her legal representative. Ruja Ignatova, on the other hand, has not disappeared or been arrested, as has happened to the majority of the leaders. Greenwood was arrested in 2018, and Konstantin Ignatov was arrested in March of this year. Konstantin Ignatov entered a guilty plea to charges of money laundering and fraud in November of this year. Overall, the charges carry a possible sentence of up to 90 years in prison.

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CHAPTER 4: Which Crypto Scam Tactics Do These Blacklisted Companies Use To Steal From You?

Because there is no backing from a government or central bank for this virtual money, it is completely untraceable. However, you can use cryptocurrencies to purchase goods and services, exchange them for U.S. dollars and other traditional currencies on digital markets, and even obtain them through specialized ATMs. The value of virtual currencies, on the other hand, is entirely determined by supply and demand, as opposed to the value of government-backed money. It is possible for the market to experience wild swings, resulting in either significant gains or significant losses for investors. Furthermore, when compared to traditional financial products such as stocks, bonds, and mutual funds, cryptocurrency investments are subject to significantly less regulatory oversight than these traditional financial products. 

Recently, there has been a significant increase in the amount of cryptocurrency fraud being perpetrated. According to the Federal Trade Commission (FTC), the Federal Trade Commission (FTC) received nearly 6,800 complaints about cryptocurrency investment scams from October 2020 to March 2021, an increase from 570 complaints during the same time period the previous year. The number of reported losses increased by a factor of more than ten, reaching more than $80 million in the last twelve months. Despite the high-tech sheen of cryptocurrency, many of the scams associated with it are simply newfangled versions of old-fashioned con games played in a digital environment.

bitcoin

Even though various types of cryptocurrencies have been in existence for several years, they only gained widespread recognition in 2017 when the price of Bitcoin, one of the more established cryptocurrencies, skyrocketed to nearly $20,000, representing an annual gain of more than 2000 percent. In spite of the “Great Crypto Crash” of 2018, cryptocurrency continues to be extremely popular, with Bitcoin being accompanied by other significant cryptocurrencies such as Etherium, Ripple’s XRP, Binance’s Tether, and countless other alternatives. 

Aside from that, the number and sophistication of cryptocurrency exchanges have increased, providing customers with platforms through which they can trade cryptocurrencies for a variety of assets, including conventional currency and other digital currencies, as well as other cryptocurrencies. Any financial instrument, however, carries the risk of being used by bad actors to defraud investors out of their money. In particular, this is true for cryptocurrencies, which are highly volatile and have piqued the public’s interest as a result of their widespread use. 

Blockchain fraud has emerged as a dominant topic of discussion among government enforcement attorneys, with numerous prominent conference panels and agency bulletins addressing its various forms, the hype versus reality, the numerous ways in which it can facilitate fraud, and efforts to rein in its abuse. As cryptocurrency scams and fraud become more prevalent, the need for whistle-blowers to assist the SEC, CFTC, and IRS with their enforcement efforts will only grow in importance.

bitcoin graph

Market Manipulation

Market manipulation fraud, also known as “pump and dump” fraud, is a type of securities fraud in which the perpetrators artificially inflate the price of targeted security, usually a low-trading-volume issuer in the over-the-counter securities market, which is largely controlled by the fraud perpetrators. Due to artificially increased trading volume, the targeted security (also known as the “pump”) experiences an artificial increase in market price, which is then quickly sold off by fraud perpetrators into an artificially inflated market for that security (also known as the “pump”) (also known as a “dump”). 

This results in illicit profits for the perpetrators, while innocent third-party investors suffer financial losses as a result of the crime. Most of the time, increased trading volume is generated by convincing unwitting investors to purchase shares of a targeted security through the use of false or deceptive sales practices and/or the release of publicly available information about the security, among other methods. 

According to the FBI, a modern variation on this scheme involves computer criminals, mostly based in foreign countries, gaining unauthorized access to the online brokerage accounts of unsuspecting victims in the United States through social engineering techniques. In order to affect the pump portion of the manipulation, a coordinated online purchase of the targeted security is made by a group of victim accounts. At the same time, the fraud perpetrators sell their existing holdings in the targeted security into the inflated market to complete the dump portion of the manipulation.

decentralized blockchain

Inflationary arbitrage is the deliberate attempt by an individual or group to drive up the price of an asset in order to profitably sell their own holdings at a higher price than they were originally purchased. “The pump” is the first step in the process. Cryptocurrency schemers use social media platforms such as Facebook, Twitter, and other online communities to disseminate false or misleading information about minimally traded coins with the goal of convincing people to invest in their schemes. These posts frequently contain embellished due diligence (also known as “D.D.”) and make predictions about an impending surge. They’ll use emojis such as rocket ships and moons, as well as diamonds and outstretched hands, to suggest that an investment is about to explode and that investors should buy and hold onto their investments until the bubble bursts, according to CNBC. 

After that, it’s time to take a trip to the landfill. The increasing momentum causes other investors to cash in and drive the price higher, while the schemers cash out and make an immediate fortune. Investors scramble to limit their losses when they realize that the hype surrounding the coin was unfounded, causing the coin’s price to plummet precipitously. Credibility is the most important factor to consider when identifying a pump-and-dump scheme. Watch out for anonymous accounts with little or no posting history — or accounts with a history of baseless pumping — if you’re following cryptocurrency movements on social media platforms such as Reddit and Twitter. The majority of the time, these are con artists.

falling bitcoin

Pump and Dump Schemes

An example of a pump-and-dump scam is when a group of traders, such as the coin’s founders or collaborators, spreads misleading or false information in order to inflate the price of an asset before selling their shares at the inflated price in order to profit from the increase in value of the asset. Buyers who are unfamiliar with a coin or who are influenced by promotional materials found online are more likely to suffer significant financial losses, which can result in significant financial losses for regular investors. 

Things can become even more complicated in a market that is largely unregulated, such as the investment market. While pump-and-dump schemes are prohibited in the stock market, cryptocurrency regulations are still in the early stages of development, so fraudsters are taking advantage of the situation to see how far they can get away with committing fraud in the cryptocurrency market.

In the course of this year, the values of bitcoin, ether, and dogecoin have all reached all-time highs, and cryptocurrency enthusiasts believe that they represent the currency of the future for the entire world. It appears that the underlying blockchain technology, which enables crypto to function by creating a digital ledger that records transactions, is a more secure form of currency than conventional currencies. When there’s money to be made, scammers, on the other hand, aren’t far behind in their pursuit of it. A common type of scam in the cryptocurrency space, pump-and-dump schemes take advantage of unsuspecting investors while making large sums of money for the scammers. 

bitcoin with graph

Alternatively, they can enlist the assistance of social media influencers who are compensated for encouraging people to purchase a specific digital coin in order to raise the value of that particular coin. As soon as the value of their coins increases, scammers and influencers sell them, allowing them to pocket the profits while the rest of the public watches their investments depreciate. Generally speaking, a pump and dump scheme is a type of securities fraud that involves the trading of stocks. Scammers create false publicity about a stock in order to generate interest in the stock in question. Because of this, the stock’s price rises as soon as investors begin to purchase shares in the company. 

The con artists who are behind the fake hype sell off all of their stock in the company when the price reaches a certain level. A result of this is a precipitous drop in the stock price, leaving new investors with a significant financial burden to bear. In the majority of cases, it operates in a similar manner to how stocks do. It is necessary for a cryptocurrency asset to appreciate in value for an individual or group of individuals to pump up the value of that asset. Because it makes use of a different type of fluid, the pump-and-dump system is distinct. 

It takes someone with the following of Musk to make a difference in the value of bitcoin, ether, and dogecoin, which are all well-established cryptocurrencies. Those with coding skills, on the other hand, can create their own crypto tokens, which are digital assets that are built on top of existing blockchain technologies such as Bitcoin or Ethereum, rather than having to start from scratch because developing a complete blockchain system for a currency takes a significant amount of time and effort.

binance profit graph

In July, four members of the “FaZe” Clan competed in a pump-and-dump event for a “SaveTheChildren” token, and the winner received a $100 donation to the charity. Pro gamers, as well as other influencers, used the coin to promote themselves and their brands to their respective audiences. Following an increase in the value of the tokens they had been given as part of the scam, they began selling them, with some making an estimated $30,000 from the sale of their tokens. Earlier this year, a cryptocurrency known as SafeTrade was promoted as “rug-proof.” It has since been delisted. 

As soon as people began to purchase the coins, the organizers were able to sell their coins quickly and leave everyone else in the dust. An investigation conducted by researchers from the University of Technology Sydney and the Stockholm School of Economics in Riga over the course of seven months discovered 355 instances of cryptocurrency pump-and-dump scams, according to a study published in 2020. The perpetrators of these scams walked away with millions of dollars in their pockets.

Internally regulated securities frauds, such as insider trading and pump and dump schemes, are investigated by the Securities and Exchange Commission (SEC), which is a government-run regulatory agency that oversees the financial markets. Although it currently does not have cryptocurrency-specific rules in place, the government does not intend to implement cryptocurrency-specific rules until at least the year 2021.

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Initial Coin Offering Scams

Difficulty counting the number of new cryptocurrencies introduced each month, and along with the introduction of new tokens and coins, a series of initial coin offerings (ICOs) is launched (ICOs). A growing number of investors are becoming more interested in cryptocurrencies despite the fact that the market has been battered this year. When all of these factors come together, scammers are attracted to the situation. 

As a matter of fact, if investors have demonstrated that they are willing to place their money into an extremely speculative cryptocurrency, it would appear that they are equally willing to place their money into fraudulent tokens or initial coin offerings (ICOs). Making the most of the numerous new investment opportunities that are becoming available while also remaining safe from fraudulent initial coin offerings (ICOs) and questionable coins and tokens can be a daunting prospect for those who invest in cryptocurrencies. 

It is becoming increasingly difficult for even experienced investors to keep up with the rapidly evolving technology behind blockchain and cryptocurrency, which is accompanied by a slew of new terms and phrases. The following steps, while not a guarantee that any cryptocurrency or blockchain-related startup will be legitimate or successful, can assist you in making the best decision possible about whether or not to invest in a specific cryptocurrency or blockchain-related startup.

cyprto currency coins

However, there are several ways to help ensure that you do not fall victim to one of the many fraudulent initial coin offerings (ICOs) and shady coins and tokens that can be found. You do not become a victim of one of these potential scams. The most effective way to protect yourself is to conduct extensive research on the individual members of a project’s team before making an investment decision. 

The whitepaper for a cryptocurrency or initial coin offering (ICO) is the document that serves as the project’s foundation. You should avoid doing business with companies that do not provide whitepapers, as this is highly recommended. Make certain that you have read and analyzed the whitepaper in its entirety. The development of a token or currency system that will facilitate the process of crowdfunding raising will be critical to the success of any initial coin offering (ICO). 

Through the efforts of legitimate businesses and organizations, potential investors can easily track the progress of the token sale as well as the overall operation of the system. Keep an eye on the number of tokens sold during the ICO’s initial coin offering (ICO). When looking for new investment opportunities in the initial coin offering (ICO) and cryptocurrency spaces, general caution should be exercised.

The developers and administrative team behind any initial coin offering (ICO) or cryptocurrency project are, in many ways, the most important factors in the project’s success. With the ability to make or break new projects simply by having their names listed on a development team, superstar developers such as Ethereum founder Vitalik Buterin have dominated the cryptocurrency space, which can be traced back to the early days of the cryptocurrency industry. 

binance crypto

Scammers are increasingly likely to fabricate fictitious founders and biographical information for their projects in order to get around this. The best way to avoid becoming a victim of this deceptive strategy is to thoroughly research the individual members of a project’s team before making a financial investment in the project in question. It is critical to make an effort to determine whether or not the development team is legitimate, in addition to determining whether or not their qualifications are adequate. The whitepaper for a cryptocurrency or initial coin offering (ICO) is the document that serves as the project’s foundation. 

Detailed information on the project’s history, goals, strategy, concerns, and timetable for implementation should be included in the whitepaper of any blockchain-related project. Business whitepapers can be extremely informative: companies with a flashy website may reveal that they lack a fundamentally sound business concept. One possible alternative scenario is a company that has a website that contains spelling errors but that also has a whitepaper that contains an excellent concept as well as a meticulously planned implementation strategy. 

A whitepaper’s first step in the analysis is to read it very carefully and completely from beginning to end. Also, check to see if the whitepaper includes any complementary resources, such as financial models, legal considerations, a SWOT analysis, and a roadmap for putting the recommendations into action; you should avoid doing business with companies that do not provide whitepapers, as this is highly recommended.

Blockchain token

Romance Scams

The use of dating websites by scammers to deceive unsuspecting victims into believing that they are in a genuine long-term relationship when they are not is widespread. The subject of lucrative cryptocurrency opportunities and the eventual transfer of coins or account authentication credentials once trust has been established are frequently brought up in conversation by participants. According to the FBI, cryptocurrency accounted for approximately 20 percent of the money reported as lost in romance scams.

Several new reports from the Federal Trade Commission revealed that romance scammers stole a total of $139 million in cryptocurrency last year, which is five times the amount stolen in the same period in 2020. (FTC). Payments in cryptocurrency accounted for the majority of the total amount of money lost through cryptocurrency payments in 2021, accounting for $547 million of the total amount of money lost to scammers in 2021. A total of $9,770 was lost by victims who made payments using cryptocurrency on average. 

It has been reported that romance scammers create fictitious social media profiles using photos obtained from the internet and then trick victims into sending them money. Despite the fact that some scammers claim to be in desperate need of money due to a financial crisis, some scammers pose as “financial experts” who promise to invest their victims’ money in cryptocurrencies or the stock market, which is an interesting twist on the traditional scam. 

bitcoin

Even though cryptocurrency scams caused the most money to be lost, gift cards were the most commonly used payment method for scams — 28 percent of victims paid their “lover” with a gift card, which is inexpensive and easy to obtain. Gift card-related romance scams have resulted in a total loss of $36 million, according to the Federal Trade Commission, which is still significantly less than the $139 million worth of cryptocurrency that has been stolen. 

A total of $121 million in additional payments was made by the victims through bank transfers and other methods of payment, and a further payment of $93 million was made through wire transfers. As noted by the Federal Trade Commission, there are some warning signs to look out for that may indicate that you are being scammed. For example, if someone you’ve met online requests payment in gift cards, cryptocurrency, or through wire transfer, it’s best to decline their request. You can also check if someone is catfishing you by running their profile picture through a reverse image search, which will show you if it has been used anywhere else previously. Keep in mind that romance scams aren’t the only method by which fraudsters trick people into sending money in bitcoins.

women holding a bitcoins

Phishing Scams

Fraudsters use phishing as one of their most common methods of deception, and it is also one of the most difficult to detect. Spoofing emails, text messages, and social media posts is a common practice among cybercriminals in an attempt to make it appear as if the messages were sent from a legitimate and trusted source is a common practice. A cryptocurrency payment may be requested by some “sources,” such as a credit card provider, a bank, or a government official, in exchange for something they have provided. 

A conscious effort will always be made to convey a sense of urgency in order to encourage the user to act quickly and without hesitation. Phishing scams are particularly common in the cryptocurrency industry, where they prey on information pertaining to online wallets and other sensitive information. Fraudsters are particularly interested in crypto wallet private keys, which are the keys that enable users to gain access to funds that have been stored in the wallet. Their method of operation is very similar to that of many other common scams on the internet today. 

They send an email that directs recipients to a specially designed website, where they must enter private key information to gain access. They will be able to steal cryptocurrency from these wallets once they have obtained this information from the owners of those accounts. Phishing scams are one of the most common types of attacks on consumers today, and they are particularly prevalent in the United States. According to the Federal Bureau of Investigation, over 114,700 people fell prey to phishing scams in the first quarter of 2019. They collectively suffered a loss of $57.8 million, which equates to approximately $500 per individual.

padlock with bitcoin

Rug Pulls

Known as “rubbish pulls,” this lucrative scam involves a cryptocurrency developer marketing a new project to investors (typically a new token) and then disappearing with hundreds of millions or even millions of dollars in cash. A blockchain analysis company estimates that in 2021 this particular type of fraud will cost victims $2.8 billion in lost money, accounting for 37 percent of all cryptocurrency scam revenue. In comparison to the previous year, rug pulls accounted for only 1% of cryptocurrency scam revenue. It’s possible that the scam’s simplicity is one of the factors contributing to its widespread acceptance. 

A code audit is not required for the creation of new tokens on the Ethereum blockchain or another blockchain and for the listing of those tokens on decentralized exchanges (DEX), which are peer-to-peer marketplaces for cryptocurrency traders. When it comes to security, code audits are critical because they examine any new code for errors, bugs, and compliance with the quality standards established by the organization. Code audits are performed on a regular basis. Because malicious developers can more easily introduce “bugs” or flaws into smart contracts, also known as self-executing contracts, if the code is not thoroughly scrutinized, the creation of “backdoors” can be used to steal user funds or commit exit scams is a real possibility. 

Rug pull scams are characterized by the fact that they occur when a new cryptocurrency project has low liquidity, which means that it is difficult to convert the coin or asset into cash. Because of the risks of unstable prices and price manipulation that come with investing in projects with limited liquidity, seasoned cryptocurrency traders avoid investing in such projects. It is possible to determine the liquidity of a cryptocurrency by looking at the trading volume for that cryptocurrency over a 24-hour period.

bitcoin at the top with holder

Prior to making an investment in a cryptocurrency project, it is important to conduct extensive research on the project to avoid rug pulls. Regarding non-fungible tokens (NFTs), it is recommended that new projects be thoroughly vetted before investing in them and that NFT teams be thoroughly investigated on social media before investing in them. It is possible to put a face to a name through the use of social media, which is especially useful for those who have limited technological expertise. 

Individuals who use pseudonyms to develop cryptocurrency projects account for a large proportion of the market. When it comes to cryptocurrency projects that have not been vetted, complete anonymity equates to a complete absence of accountability. It is referred to as “pulling the rug out from under” an investor who is not aware of the existence of a cryptocurrency. This occurs when the cryptocurrency’s creators or developers pull the rug out from under them” (also known as “rug pullers”). The liquidity scam, on the other hand, is the most common type of rug pull, and it occurs most frequently on decentralized exchanges, which is why it is listed as the most common type of rug pull on this website (DEXs). 

An exchange that is run by consensus is different from a centralized exchange (CEX), which is owned by a single party and operated by a large number of machines working together as one network. It is relatively simple, quick, and cost-free for developers to create a coin (also known as a crypto asset or cryptocurrency) and list it for purchase on a DEX in a manner that is both simple and quick. CEXs, on the other hand, have a more stringent approval process, owing to the fact that they typically require the details of their users in order to comply with KYC/AML regulations. 

Because digital asset exchanges (DEXs) do not allow the trading of fiat currency (such as sterling pounds or U.S. dollars), any new coin created on a DEX must be paired with an existing cryptocurrency in order to be traded. It will be necessary for the creators or developers of a new token to deposit an amount of the paired cryptocurrency, along with an amount of their own new token, into a “liquidity pool,” which will facilitate the trading of that coin in conjunction with the paired cryptocurrency.

Risk is Everywhere - How Will You Combat it?

The risk associated with any investment is the same for all, but some experts believe that cryptocurrency is one of the more risky investment options available today. In the event that you decide to invest in cryptocurrencies, make sure to conduct thorough research and avoid fraudulent companies such as those mentioned in this article and others such as Bimcoin, AIZeus, Bytecoin, and Capital Expanse, to name a few.

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