Ethereum 

Ethereum’s Gas-Guzzling Suspected Ponzi FairWin Funds at Risk

The biggest Ethereum contract in the industry, dubbed FairWin, is allegedly putting user funds at risk and continues to guzzle a major amount of gas on the network. Multiple crypto social media users have been analyzing what they believe to be the fastest-growing Ponzi scheme on Ethereum. On Sept. 27, blockchain developer Philippe Castonguay warned: “The http://FairWin.me Ponzi Scheme contains critical vulnerabilities that put all funds at risk. Spread knowledge (especially in Asia) Users need to withdraw their funds and stop interacting with the contract ASAP.” Crypto community sleuths at…

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Bitcoin 

$3B Ponzi Scheme Is Now Allegedly Dumping Bitcoin by the Hundreds

Amid a downturn in the cryptocurrency markets, the apparent swathe of Bitcoin sell-offs from a $3 billion Chinese Ponzi scheme could be to blame. On Aug. 14, Dovey Wan — founding partner of blockchain-based investment company Primitive Ventures — called attention to the ongoing mass sell-offs from the fraudulent Chinese investment scheme, dubbed PlusToken. 10 million investors scammed of $3 billion  As Wan outlines, PlusToken was created in mid-2018 and promised high yield investment returns at different rebate percentages to its four tiers of member — a classic Ponzi scheme…

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Blockchain 

Suspected Crypto Ponzi Scheme Has No License in Malta, Regulator Warns

Malta’s finance regulator has issued a public warning about a cryptocurrency company falsely claiming it is licensed to operate in the country.  ‘Built on the power of the Middle East’ In a statement July 23, the Malta Financial Services Authority (MFSA) warned residents they should avoid Emirate Coin Tech, which offers cryptocurrency investment options with alleged weekly payouts of up to 25%. “The MFSA wishes to alert the public, in Malta and abroad, that Emirate Coin Tech is NOT a Maltese registered Company NOR licenced or otherwise authorised by the…

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Blockchain 

Mob Burns Down Purported Crypto Ponzi Schemer’s House in South Africa

An angry mob in Ladysmith, South Africa has reportedly torched the residence of Sphelele Mbatha, known as Sgumza, a manager of alleged crypto Ponzi scheme Bitcoin Wallet. The mob was likely a collection of victims who lost money through Bitcoin Wallet, according to the report by Ladysmith Gazette on July 10.  The local police have been investigating an unnamed Ponzi Scheme in Ladysmith, as reported by IOL. According to the report, however, Bitcoin Wallet minimally appears to have made get-rich-quick promises to prospective investors.  An unnamed community member reportedly told…

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Blockchain 

Indian Authorities Arrest 4 Individuals Accused of Crypto Ponzi Scheme

The Criminal Investigation Department (CID) of India has arrested Vijay Prajapati, Dhiraj Patel, Kamruddin Syed, and Ashiq Shaikh, the alleged creators of the cryptocurrency KBC Coin, according to a report by The Times of India on July 4. As per the report, the CID argues that KBC is a Ponzi Scheme.  KBC reportedly launched 6 months ago, and its price has not moved since. KBC coins were reportedly issued at 10 paisas apiece, with the promise that they would skyrocket in value to 10 rupees in a short time ⁠—…

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Ethereum 

From ‘Ponzi’ To ‘We’re Working On It’

The head of the Bank of International Settlements (BIS) has appeared to U-turn on issuing digital currencies after a fresh interview with the Financial Times on June 30.  Speaking to the publication, BIS chief Augustin Carstens actively endorsed the creation and issuance of digital versions of national fiat currencies.  “Many central banks are working on it; we are working on it, supporting them,” he said.  “And it might be that it is sooner than we think that there is a market and we need to be able to provide central…

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Bitcoin 

SEC Shuts Down Ponzi Scheme Which Duped 300 Into ‘Diamond-Backed’ Cryptocurrency

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…

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Bitcoin 

Cryptocurrency Project OneCoin Denies Ponzi and Pyramid Scheme Claims

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…

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Bitcoin 

Artificial Intelligence Helps South Korea Police End $18 Million Crypto Ponzi Scheme

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,”…

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Bitcoin 

Interim Bail Granted to Two Brothers Accused in $300 Mln Crypto Ponzi Scheme

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…

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