Tag: Cryptocurrency Crime

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British Millionaire And Facebook Come To Agreement About Bitcoin (BTC) Scam Ads

Many in the cryptocurrency community were ecstatic to find out that Facebook had reversed its crypto ad ban last year in 2018. Obviously, many believed that cryptocurrency markets could never truly grow unless there was an increased amount of exposure to potential investors and traders.

While the platform might not advertise every company now, and there are strict rules surrounding the advertisements; it still means that cryptocurrency-related companies can reach a fraction of the platform’s 2.2 billion monthly active users, which is a significant part of the world’s population. However, Martin Lewis, a British millionaire, was displeased to find out that his face was being used in advertisements in 2018, and took action against the company. The lawsuit has now been dropped.

Lawsuit Dropped

A millionaire who sued t Facebook because ads had featured his likeness has actually dropped his lawsuit against the global social media platform. This millionaire is none other than Martin Lewis, the founder of MoneySavingExpert.com. The announcement was made in a press conference on Wednesday, January 23, 2019.

It took eight months for the parties to come to an agreement. Lewis did not accept a sum of money as a settlement, but instead, Facebook will be donating 3 million GBP to Citizens Advice in the UK. Citizens Advice is a network of over 300 charities that provides free information to individuals with all sorts of issues, whether it’s legal or financial.

Next Steps

Facebook appears to be taking action against future issues such as this. Specifically, a button will be provided for UK users to immediately report an ad that they believe to be a scam. A representative for the company stated that if the feature proved effective, it could be expanded to other countries, as well.

Lewis praised Facebook for the decision, and also seemed to hint that Google should take notice. He even stated that he would not rule out the possibility of suing Google, as well.

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Roger Ver Says Scammers Made $6 Million

One major issue with the cryptocurrency markets is the fact that there are so many scammers involved, that are ready to take advantage of those who might not be knowledgeable about how scams work. Often times, scammers use the likeness of influential figures in the cryptocurrency space in order to profit.

Specifically, Roger Ver, the CEO of Bitcoin.com, has stated that social media accounts using his information have scammed individuals out of $6 million in cryptocurrency.

About Ver

For those who are unaware, Roger Ver was one of the earliest and most famous Bitcoin adopters and investors. He was one of the few individuals actively investing in the space around 2011-2012, and he invested in notable companies such as Ripple, Bitpay, and Kraken.

He is one of the five founders of the Bitcoin Foundation, as well, and is known for supporting Bitcoin (BTC) as a means towards true economic freedom. He was born and raised in Silicon Valley, but no longer lives in the United States. He has a Twitter account with over 500,000 followers, which makes him easily one of the most influential cryptocurrency-related accounts.

Clarification

Ver has gone on record to let cryptocurrency traders and investors know that he would never directly ask for donations or investments. He stated: “I’m never ever ever going to contact any of you guys asking for money or asking to invest in something via direct message on any of these social media platforms.”

Ver is not the only one who has been impersonated, as scammers attempt to leverage the influence of major cryptocurrency figures to gain credibility and solicit donations. Some of the most popular individuals who have been impersonate include John Mcafee, Vitalik Buterin, and Elon Musk. Specifically, billionaire entrepreneur Elon Musk, has even complimented how innovative the scamsters have become.

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Seven Crypto Criminals Indicted In Taiwan, Ran Bitcoin (BTC) Fraud Scheme

It’s well known that there are countries in Asia that are not exactly embracing the cryptocurrency markets. For example, China has cracked down on cryptocurrency and initial coin offerings (ICOs), and India is still undecided about a regulatory framework regarding the sector. It appears as though there is now more negative publicity surrounding cryptocurrency and Asia.

This time, the country is Taiwan, which often gets overshadowed, considering it is the seventh largest economy in Asia. Seven individuals have been indicted for allegedly operating a fraudulent Bitcoin (BTC) investment scheme.

Background Information

The individuals were focused on attracting investors from Taiwan and China in particular, even focusing on specific provinces. The way that they lured many investors in is by promising to deliver yearly returns of 355%, meaning that those who invested would be able to more than triple their investment in a year’s time.

While there are many individuals and crime rings around the world that have been able to swindle thousands of dollars out of potential investors – this particular group of individuals was operating on a larger scale. Specifically, the seven were able to defraud over 1,000 investors out of over $50 million. The group may have had more success due to the strict regulatory conditions in China with regards to cryptocurrency.

Context/Indictments

While some investors were allegedly receiving returns at some point, others were not. The group began attracting investors since October 2016, but by April of 2018, all returns had stopped altogether. One of the main individuals involved was a man only identified by Lin, a 47 year-old who actually established an office in Taichung’s West District specifically to defraud potential investors.

There was a whole range of evidence brought forward for the indictments, including witness testimonies, bank accounts, and “more evidence”. The individuals are charged with violating Taiwan’s Banking and Multi-Level Marketing Supervision acts.

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Brazil Cryptocurrency Whales Turning To Physical Vaults/Safes

For those that are cryptocurrency “whales”, meaning investors with a significant amount of cryptocurrency holdings – there is always the question surrounding whether their funds are completely safe or not. When you consider that over $1 billion in cryptocurrency was stolen in 2018 – the concern is understandable.=

Brazilian “whales” are no longer viewing a secure password as enough protection for their digital assets. It appears as though they are now turning to private companies that have actual physical vaults in order to secure their cryptocurrency holdings.

Vault Features

For those wondering about why they might turn to private companies for additional security; it’s important to note that there are some features that are quite technologically advanced. For example, one vault boasts seven armed – and reinforced – steel doors.

While the world might be used to fingerprint scanning, there is another company that is able to take it to a whole new level. For example, another private company offers palm scanners that read millions of individual points on the user’s hand, and also even examines the blood flow through the hand, as well.

Crime Context

For those that are unaware, Brazil has experienced some high-profile cryptocurrency hacks and data breaches last year. The most infamous data breach was that of Atlas Quantum, where the personal information of over thousands of users were revealed thanks to hackers. Regardless of the personal data leak, no funds were compromised.

Of course, it should be noted that in some cases, cryptocurrency whales are targeted in cases that actually use real-life violence rather than cryptocurrency hacking. For example, in one of the more tragic cases of cryptocurrency crime; kidnappers are demanding 5 Bitcoin to return a nine year-old girl in South Africa. The ransom was communicated in an anonymous message through e-mail and it is still unclear what crime syndicate is behind the kidnapping, if any.

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Bitcoin (BTC) Trader And Friend Booked For Murder

A Bitcoin trader and his friend have reportedly murdered a young woman in the Philippines, according to various news reports. The trader in question is 21 year-old Bitcoin dealer Troy Woody Jr. and his friend, 24-year old Mir Islam. Both are currently being held in the country on a murder charge.

The crime occurred in the Philippines, and all three individuals involved apparently flew into the country for a short holiday that quickly turned into a longer stay. There is now apparently video evidence related to the crime, as well.

Crime Details

The murder victim is one Tomi Michelle Masters, the girlfriend of Troy Woody Jr. Her body was recovered from a Philippines River (The Pasig River). The two suspects reportedly strangled and dumped Masters’ naked body into the river, but apparently, each suspect is blaming the other individual for the actual murder. Masters worked at a medical marijuana facility in California.

Masters was apparently supposed to fly home with Woody Jr.  on December 17, but never made her flight, according to her father, Shawn Masters. He was then notified by the U.S. Embassy in Manila that his daughter had been murdered.

Additional Context

The authorities have stated that both individuals have admitted that they were involved in the disposal of the body, although they are still investigating who actually murdered Masters. For context, Mir Islam is not only Troy Woody Jr.’s friend, but apparently his business partner, as well. Supposedly, a massive argument occurred when Masters stated that she wanted to travel home to Indiana.

Superintendent Igmedio Bernaldez offered this statement regarding the case: “We have yet to establish the motive. The three were here on vacation. If you ask the boyfriend, he will point to his friend as the killer. But if you ask the other suspect, he will say it was his friend who killed her. They are being questioned and the home they were staying at is being searched for evidence.”

 

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South Korean Court Acquits Bithumb

One of the issues with an emerging technology that has the potential to be disruptive is the fact that often times, the world doesn’t know exactly how to respond. By now, it is clear that blockchain technology and cryptocurrency can be applied to many sectors – but governments and courts are unclear on the exact laws and regulations that should apply.

In a new development, a South Korean court has acquitted the cryptocurrency exchange Bithumb with respect to a court case. The issue revolves around the fact that a client claims that hackers were “allowed” to steal cash and crypto assets from the exchange, and the amount in question is substantial. Specifically, the amount is over $300,000 (the exact amount is 400 million Korean won, which pans out to about $355,000 USD).

About The Case

The user’s name is Anh Park, and the incident occurred over a year ago, when Bitcoin was in the midst of a massive bull run, and many were much more optimistic about the cryptocurrency markets. The exact day of the incident was November 30, 2017.

Park alleges that Bithumb’s security is to blame. Hackers were able to enter Park’s account, and empty it of almost all of the money (save a few cents). It should be noted that one of the main points of the case is the fact that Bithumb’s security was compromised before, because information about over 30,000 users were compromised thanks to hackers gaining access to a Bithumb employee’s records. Since the exchange’s security was already compromised – the argument is that the exchange is at fault. The company has claimed that it has compensated all involved.

Precedents and Obligations

Bithumb’s argument was that it isn’t responsible for compensation, since it technically isn’t a financial firm of any kind. The lawsuit gained attention because many users worldwide want to know whether exchanges are technically obligated to compensate for users during security breaches like this.

It’s clear that the court sided with Bithumb, which sets a dangerous precedent. This might trouble investors and traders who are concerned about their funds getting hacked and having no legal recourse. Of course, time will tell whether this case is influential on a global level with regards to exchanges and financial obligations.