Bitcoin 

Spanish Law Enforcement Arrests 35 Suspects for Bank Fraud, BTC Money Laundering

Spanish law enforcement arrested 35 people for allegedly counterfeiting banking cards and laundering the proceeds through bitcoin (BTC), local media La Verdad reports on June 14. Per the report, the organization obtained over €600,000 ($674,000) and laundered over €1 million ($1.2 million) using bitcoin. Furthermore, the Command of Alicante reportedly solved a total of 1,020 connected cybercrimes during the operation. The alleged actions of the suspects — who are from Equatorial Guinea, Spain, Nigeria, Cameroon and Morocco — had a total of 219 victims in Spain, with 20 more in…

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Bitcoin 

Traditional Exchanges Pull Back From Reg A+ IPOs Due to Fraud Concerns

Traditional exchanges are holding off on Reg A+ initial public offerings (IPOs) following problematic offerings like that of purported cryptocurrency firm Longfin Corp., the Wall Street Journal (WSJ) reported on June 10. Earlier in June, the United States Securities and Exchange Commission’s (SEC) filed fraud charges against Longfin. The SEC claimed that Longfin fabricated 90% of its revenue and sold over 400,000 shares of Longfin that it did not have the funds to back in a scheme to secure its spot on the Nasdaq. The complaint also reportedly stated that…

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Blockchain 

US SEC Adds Fraud to List of Charges Against ‘Crypto’ Firm Longfin

The United States Securities and Exchange Commission (SEC) has filed fraud charges against supposed cryptocurrency firm Longfin Corp. and its CEO Venkata S. Meenavalli, according to a press release on June 5. Longfin saw a massive jump in its share price in 2017 when it claimed that it had redirected its business model toward blockchain technology. The associate director of the Division of Enforcement, Anita B. Bandy, summarized the allegations as such: “In our complaint against Longfin and Meenavalli and our amended complaint against Altahawi, we allege a multi-pronged fraud…

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Bitcoin 

Hong Kong’s Securities Regulator Calls for Crypto Regulation to Confront Fraud

The Securities and Futures Commission (SFC) of Hong Kong has expressed concern over the lack of regulation for dealing with fraud in the crypto space, local news agency The Standard reports May 30. SFC enforcement chief Thomas Atkinson has recently pointed out problems associated with the existing regulatory uncertainty over initial coin offerings (ICOs) and cryptocurrency trading. Atkinson, who resigned from Canada’s largest securities enforcement authority, the Ontario Securities Commission (OSC), back in 2016, emphasized that the structure of certain crypto exchanges is “beyond the scope of the SFC,” the…

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Bitcoin 

Police Arrest Dutch Cryptocurrency CEO in Rumored $110 Million Fraud Case

Dutch police have arrested a former entrepreneur for fraud after alleging he conned investors in a fake bitcoin (BTC) mining operation out of €100 million ($111 million), Dutch daily news outlet De Gelderlander reported on May 21. According to reports, Barry van Mourik, who previously ran another cryptocurrency company also under suspicion, deceived clients into thinking they would earn money from bitcoin mining. Posing as the operator of a mining farm, van Mourik accrued client funds while allegedly failing to purchase any equipment, instead reportedly spending the money on luxury…

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Blockchain 

Catch Me If You Can: Fighting Fraud With Blockchain

Fraud impacts organizations of all types and sizes across a wide range of industries and geographies. Consequences can be direct, through financial losses, or indirect, through fines and reputational fallout. In 2018, firms worldwide lost more than $7 billion to internal fraud schemes, according to a “2018 Report to Nations,” by the Association of Certified Fraud Examiners (ACFE) — which analysed 2,600 real cases of occupational fraud from companies across 125 territories and 23 industries. Addressing the risk of fraud is a key challenge for all organizations. Blockchain as a…

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Blockchain 

Exec Warns $9 Trln Trade Finance Industry Must Go Digital to Combat Fraud, Cites Blockchain

A senior executive at one of Asia’s biggest banks has said the $9 trillion trade finance industry needs to be digitized in order to tackle fraud, according to a Bloomberg article published on May 5. Ng Chuey Peng, managing director and head of global commodities finance at Singapore’s Oversea-Chinese Banking Corp Ltd. (OCBC), criticized the industry’s reliance on paper receipts, and warned forgeries have become so sophisticated that can be difficult to spot fake documents. Paper records are regularly used for everything from invoices to establishing the ownership of goods, and without them, banks…

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Cryptocurrency 

Crypto Blacklist | Belgium Updates List of Crypto Fraud Websites

Belgium’s Financial Services and Markets Authority (FSMA) has updated its crypto blacklist. According to an official statement made today, the government body has added seven crypto trading platforms to it. Crypto Blacklist The crypto blacklist is comprised of websites and/or platforms associated with fraud or that show signs of fraudulent behavior. Effectively, these websites are known to scam investors or seem suspicious. The previous crypto blacklist was released in December 2018 and listed a total of 113 websites. Now, that list has grown to 120. Vigilance Despite the availability of the list and…

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Bitcoin 

Canadian Police Freezes Assets of FUEL Token Issuers due to Alleged $22 Million Fraud

Canadian police have frozen assets of the founders of blockchain consulting firm Vanbex, which raised $22 million in an alleged fraudulent initial coin offering (ICO). The development was reported in a court document released on March 14. According to the document, Vanbex founders Kevin Hobbs and Lisa Cheng claimed to the public that they operated a Vancouver-based cryptocurrency firm, starting from 2017. The firm, which was interchangeably called Vanbex and Etherparty, is actually a shell company that developed no useable products, the court document argues. The police have now frozen…

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Bitcoin 

Hong Kong Entrepreneur Who ‘Made It Rain’ from High-Rise Arrested for Crypto Mining Fraud

A purported Bitcoin millionaire (BTC) who was previously involved in “making it rain cash” on the streets of Hong Kong, has reportedly been arrested for mining-related fraud, the South China Morning Post reports Thursday, Feb. 28. A 25-year old businessman named Wong Ching-kit and his 20-year-old colleague have purportedly been arrested by Commercial Crime Bureau officers at their office in Hong Kong. They are reportedly being held in custody for conspiracy to defraud investors by selling them cryptocurrency mining machines. Details on how or why these miner-related sales were considered…

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