A new scandal has emerged in the crypto currency industry. While buying cryptocurrency on a registered exchange is a legitimate investment, consumers should avoid get-rich-quick schemes and other fraudulent schemes. The Federal Trade Commission estimates that consumers have lost at least $1 billion in crypto fraud over the past year, although the actual amount is likely much higher, as many losses go unreported. In May 2013, Pennsylvania educator Mayama Kesselly decided to make a risky investment in VBit Technologies, a company that promised to mine bitcoin.
As a result of the scandal, the cryptocurrency exchange platform was closed for several days. Many users began to suspect that their accounts had been compromised, and they began to file criminal complaints. The Hong Kong Commercial Crime Bureau determined that investors lost about $400 million on the scam. A preliminary investigation by the Hong Kong Commercial Crime Bureau revealed that the scheme required investors to invest 400,000 Hong Kong dollars for 90 bitcoins. The company’s website allegedly promised a 150% return on investment. In addition, several arrests have been made, and a full investigation is ongoing.
This latest scandal has left many in the country wondering if Bommai’s dismissal has anything to do with his personal indulgences. Party insiders speculate that Bommai’s sacking may be a result of rumours that he is related to the crypto currency scandal.
The most infamous case involves the company Mt Gox. This exchange platform was responsible for 70% of all bitcoin transactions. However, it was shut down on 20th June 2013, and trading was suspended. A couple of days later, the site returned a blank page. However, this recent incident has highlighted the importance of keeping good accounting records, and that any crypto currency exchange should implement good security measures to prevent such fraud.
Another common scam in the crypto world involves initial coin offerings (ICOs). In an ICO, a startup company offers investors a discount on a new crypto coin in exchange for their money. This scheme is typically very risky and speculative, so investors should be aware of the risks involved before making an investment.
A recent scandal involving a cryptocurrency exchange has led to a massive amount of money lost by investors. While officials are investigating and taking steps to identify the scammers, there are no guarantees that investors will receive their money. However, the exchange has increased security measures and is now looking for a solution to the problem.
As cryptocurrency craze continues unabated, the number of crypto-based investment scams has risen. This is largely due to the fact that the value of cryptos fluctuates significantly, making them a prime target for fraudulent activity. Some criminals even create fake websites and instruct investors to deposit their cryptocurrency into a compromised wallet. In other cases, the ICO is at fault – the founders of the crypto currency may distribute unregulated tokens to investors and mislead them through false advertising.
