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Saturday, 21 July 01:49 (GMT -05:00)



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Another Bitcoin Fraud Is Caught


Crypto currencies are controversial. On the on hand they give investors a decent investment opportunity. On the other hand, the may be way too risky. Often times, those are both market and even non-market risks, including fraud.

 

 

 

 
In some of the previous articles, we recommended you to start with a sound financial strategy and risk management before you invest even a penny in crypto currencies. We are not trying to say that those are bad investments. They can make you money if you really know what you are doing. However, you should be really careful about it since the advantages of decentralized and anonymous currencies may turn into disadvantages and loses for your wallet.
 

 

Biggest Crypto Currency Scandals 2017
 

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To start with, let’s recap some of the biggest scandals related to crypto currencies in 2017. Those caused a lot of troubles to both investors and average users.
 
Number one is all about Ethereum. For those of you who don’t know, this new crypto currency suddenly crashed from $370 all the way down to $10 not so long ago. Needless to say that all the investors were shocked. Most exchanges temporarily suspended transaction based on this currency. Later on, Ethereum recovered to $350, only to see another plunge down to $222. Experts say, this was all about speculative transactions designed to make the greedy traders richer. The market capitalization deflated from 110 billion dollars all the way down to around 90 billion dollars.
 
Number two is related to the owner of Bitcoin exchange Coin.mx, who was sentenced to 5,5 years in prison for money laundering with the help of this exchange (the amount is around 10 billion dollars).
 
Number three is all about China. The thing is, the People’s Bank of China has recently toughened the regulation related to crypto currencies as well as the local exchanges working with them. Before that, Chinese exchanges were the biggest and most active on the Internet. Since the regulator has been investigating into several cases related to money laundering, those exchanges were ordered to suspend offering leverage and introduce certain fees. All of that resulted in a massive flight of client capital.
 
Number four is virus Petya blocking infected PCs and blackmailing the users asking them to transfer them $300 in Bitcoins for unblocking the software and data.
 
Number five is related to Freewallet. Many of the users have found their funds missing. The total damage is over 8 million dollars.
 
Number six is about cryptocurrency HYIPs artificially increasing the yields to attract more of those unsuspecting investors, with further blocking the accounts and transferring money to anonymous accounts.
 
All of them are just some of the biggest cases, but this is just the beginning of a rather long list of scandals this year. Not so long ago, the list got even longer. The thing is that another crypto currency fraud was caught in the UK.
 

 

Fake Crypto Currency Exchange
 

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It is interesting to note that Renwick Haddow was previously accused of fraud in the UK but he decided to change the location and switch to American investors. This time, the SEC and the U.S. Department of Justice managed to catch him red-handed. On June 30th, the SEC accused him of fraud in New York where he was residing at that moment. In particular, he was accused of scamming the clients of 2 fake companies by creating a fake crypto-currency exchange without registering it with the SEC, which is a serious violation.
 
The essence is that he ordered his assistants to call potential investors and sell them assets through Bitcoin Store Inc. and Bar Works Inc. According to the scammed investors, they were informed about experienced top managers of those firms, which was a lie. On top of that, the financial reports were corrupted. By using those fake companies and a fake exchange, he managed to accumulate serious amounts of money, 80% of which was transferred offshore. Attracting tons of money over a short period of time became possible due to the fact that he was promising his victims really big payoffs.
 

 

The bottom line is, think twice before you decide to invest in this risky business. Never do it if you don’t know what you are getting into. And even if you are about to invest in stable crypto currencies, make sure that you are dealing with honest companies.

 

You are free to discuss this article here:   forum for traders and investors

 

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Bitcoin Gets Cheaper on News about Hacking Swiss Cryptocurrency Exchange Bancor

On July 11th, Bitcoin and other altcoins continued their downtrend started on Monday. International experts say that the biggest reason for that is the news on hacking a Swiss crypto exchange known as Bancor. In particular, they say, the hackers stole 23,5 million dollars in crypto coins.

Publication date: 12 July 11:32 AM

Bitcoin Rate Reaches 6700 USD/BTC

At the end of the trading week, the BTC exchange rate reached 6700 USD/BTC. The entire cryptocurrency market showed confident growth as well.

Publication date: 08 July 07:56 AM

This week Bitcoin may raise to 7000 USD/BTC

 This week, Bitcoin may grow in value all the way up to 7000 USD/BTC, some experts say. As you probably know, the past trading week wasn’t successful for the world’s first cryptocurrency, as well as for the rest of the crypto market. 

Publication date: 25 June 10:41 AM

UK to Start Litcoin Futures Trading

Starting from tomorrow, international investors will be limited only to buying Bitcoin futures. The thing is, on June 22nd, a UK-based crypto futures platform named Crypto Facilities launches Litecoin futures.
 
Publication date: 21 June 01:06 PM

Will Bitcoin Dive Below $6000?

Publication date: 19 June 12:42 PM

Today’s Bitcoin Rate Signals Growing Risks in Banking Sector

Yesterday, the BTC exchange rate suddenly started growing, probably as a part of a recovery move against the existing downtrend. According to CoinMarketCap, the current BTC exchange rate is somewhere above 7500 USD/BTC. Over the last 24 hours, the world’s first cryptocurrency has gained some 5%, trying to recover from May’s downtrend (in case you don’t know, the coin has lost 20% since early May before starting to recover yesterday).

Publication date: 31 May 08:33 AM

Bitcoin Goes Down Before Another Rally?

The BTC exchange rate keeps on going down while being driven by a number of factors and circumstances. International experts say that the price of the world’s first and most popular cryptocurrency is currently going down just to gain some momentum later and skyrocket to new highs.

Publication date: 29 May 11:19 AM

Masterforex-V Analysts name Successful ICOs in May 2018

For those of you who don’t know, an Initial Coin Offering (ICO) is all about raising funds. To be more specific, startups sell their underlying crypto tokens in exchange for existing crypto currencies, mostly Bitcoin, Ethereum and other altcoins out there. This resembles an IPO in the stock market where investors buy a newly offered stock.

Publication date: 23 May 12:14 PM

Bitcoin Will Hit $20K, CoinShares Says

Bitcoin is really capable of getting back to the all-time high at $20K per coin. This is what founder of Coinshares Danny Masters thinks on the matter. He is not a rookie in this business. His company has been creating investment products for the cryptocurrency market and conducting blockchain-related research for years. Mr. Masters believes in the future of Bitcoin and altcoins. However, he thinks the market is yet to pass a few development stages. 

Publication date: 20 May 08:38 AM

German Stock Exchange Börse Stuttgart Welcomes Cryptocurrencies

Soon enough, maybe this fall, German stock exchange Börse Stuttgart is going to start working with cryptocurrencies. For that purpose, the exchange is expected to use its branch. Trading cryptocurrencies will be implemented through the Bison app. The expected trading turnover is around 100 billion dollars.

Publication date: 17 May 12:00 PM