Crypto scams are not new, and many unsuspecting people new to the crypto scene have become victims of them. According to FBI Internet crime data, crypto scams will cost Americans $2.3 billion in 2022. The FBI also warned Americans Crypto fraud is rampant on LinkedIn in the same year.

Recently, Google investigated and caught two scammers who fraudulently withdrew money in the form of crypto apps via the Play Store. Since the Play Store is developed and owned by Google, scams damage the integrity of the tech giant. Fortunately, the company has since identified the scammers and filed a civil lawsuit against them in New York federal court.

Scammers trick Google into hosting fake encryption apps

Google tries to safeguard users from harmful apps by implementing measures to check apps and make sure they are safe to download. Even then, there is a possibility of some malicious apps making their way into the Play Store and users’ devices. However, even if such apps are present in the App Store, Google continues to monitor them and removes them as soon as possible.

Even though Google did the same with this fake crypto app scam, the company found itself faced with an uncommon dilemma. Every time Google removed an app, another one took its place. The cycle continued until Google had to remove 87 fake crypto apps and waste $75,000 investigating scams. The $75,000, however, allowed Google to recognize the culprits and take action against them.

The apps appeared to be legitimate cryptocurrency exchanges and investment platforms, but were created to steal cryptocurrency. The two app developers who developed the apps were based in Shenzhen, China, and Hong Kong. According to Google, the two used YouTube and text messages to market their app and lure unsuspecting victims.

Over 100,000 people have fallen victim to the scam

In their civil suit, Google claimed that the two scammers managed to defraud over 100,000 people worldwide. Google also said each victim lost anywhere from $100 to tens of thousands of dollars.

On the other hand, this incident has called into question the integrity of Google. The term “integrity” was mentioned dozens of times in the document, which Google understandably appreciates how it appears to consumers.

In Google’s defense, crypto app scams are not new or unique. Apple has faced similar problems. A recent example is when a faux leather wallet app on the App Store stole over $120,000 from users. With how important it is Crypto wallets and apps are for those who trade digital currency, users must take every step possible to protect their digital assets.

Fuente

The story so distant: Sam Bankman-Fried, the former CEO of the collapse cryptocurrency trade FTX, he was sentenced to 25 years in prison on March 28, after being found guilty of multiple fraud charges in 2023 following the spectacular collapse of his cryptocurrency exchange and business.

Nearly a year and a half after the collapse, what does the ruling mean for the cryptocurrency industry and its investors?

(For the day’s top tech news, subscribe to our tech newsletter Today’s Cache)

Read also: Former cryptocurrency tycoon Sam Bankman-Fried convicted of defrauding FTX clients

What are the complete terms of the sentence?

While Bankman-Fried’s lawyers tried to push for a prison sentence shorter than a few years, prosecutors wanted to see him in prison for 40 to 50 years. Meanwhile, the maximum possible sentence was 110 years.

Over the course of a month-long trial in 2023, Bankman-Fried’s legal team sought to move away from the image of him as a malicious scammer who stole cryptocurrency investors’ money, and instead he painted a portrait of a well-intentioned businessman who had been let down by his trusted associates. Attorney Mark Mukasey called Bankman-Fried a “goofy math nerd,” talked about his autism and pushed for a shorter sentence so his client could start a family.

When he was sentenced to 25 years in prison and three years of supervised release, Bankman-Fried admitted that FTX’s clients had suffered and that such recognition was “missing” from what he spoke about during the trial. He also expressed regret for the way he treated his former colleagues.

Bankman-Fried, a former billionaire, will also have to forfeit about $11 billion as part of the sentence. During the legal proceedings, it was determined that customers lost at least $8 billion, although this figure may vary due to the volatile nature of cryptocurrency prices.

The judge authorized the government to use funds recovered through the forfeiture process to compensate victims, according to U.S. Justice Department guidance released Thursday.

Bankman-Fried’s attorney plans to appeal.

What were the charges against Sam Bankman-Fried?

Two counts of conspiracy to commit wire fraud: Condemned

Two counts of wire fraud: Condemned

One charge of conspiracy to commit money laundering: Condemned

Conspiracy to commit commodity fraud: Condemned

Criminal conspiracy to commit securities fraud: Condemned

In total, there were seven cases of fraud and/or related charges.

FTX collapsed in late 2022 as customers, panicking over the health of the exchange, tried to quickly withdraw billions of dollars, triggering a liquidity crisis. It was later determined that Bankman-Fried misused client funds to support Alameda Research, a cryptocurrency trading firm. Bankman-Fried was arrested in the Bahamas a month later and brought back to the United States to face trial.

In a statement Thursday, U.S. Attorney for the Southern District of New York Damian Williams used the ruling to issue a warning that focused on Bankman-Fried as a financial criminal rather than a cryptocurrency fraudster.

“Samuel Bankman-Fried orchestrated one of the largest financial frauds in history, stealing more than $8 billion of his clients’ money,” Williams said. “His deliberate and ongoing lies demonstrated a blatant disregard for client expectations and a lack of respect for the rule of law, all so he could secretly use his clients’ money to expand his own power and influence . The extent of his crimes is measured not only by the amount of money stolen, but by the extraordinary damage caused to the victims, who in some cases have seen their life savings wiped out overnight.”

Read also: The reasons behind the collapse of the cryptocurrency market

According to the judge, the co-founder and former CEO of FTX has been in custody since last year because he violated bail conditions and engaged in witness tampering.

Will FTX users get their money back?

There’s no way to be sure, but such an outcome seems highly unlikely, with different parties making very different claims about the state of FTX’s assets.

Lawyer Andrew Dietderich, who is working with the collapsed cryptocurrency exchange, said earlier this year that a strategy was in place to try to pay off all those customers and creditors with “legitimate claims,” ​​the newspaper reported. CNBC.

Bankman-Fried had also previously said that people would be repaid.

However, Judge Lewis A. Kaplan expressed doubt during sentencing, noting, “The defendant’s claim that FTX’s customers and creditors will be paid in full is misleading, it is logically flawed, it is speculative.”

How will the ruling affect the cryptocurrency market?

Bankman-Fried’s high-profile arrest, his disgraced return to the United States, and… dramatic court proceedings in which his former colleagues and even a romantic partner testified against him, made headlines around the world. His chaotic testimony and uncooperative behavior stunned even the judge and did nothing to turn public opinion in his favor.

The cryptocurrency market itself appeared largely unaffected by news of the ruling, as leading coins Bitcoin (BTC) and Ether (ETH) have not seen dramatic rises or falls in recent days. While the FTX token is still trading, it fell more than 13% on Friday and was worth less than $2, compared to its all-time high of $85.02.

“FTX’s bankruptcy proceedings are ongoing. The FTT token no longer has any use and can be liquidated from assets to pay creditors. Please proceed with caution,” reads a notice on the CoinMarketCap page.

Bitcoin marked a new all-time high this year and surpassed the $70,000 mark, instilling optimism in the sector after about two years of low prices and reputational crisis.

FTX was founded in 2019, and former CEO Sam Bankman-Fried was known for his casual dress sense, lavish lifestyle and a controversial approach to charity known as “effective altruism.” Bankman-Fried was also a prolific political donor in the United States who gave millions of dollars to individuals of both parties, while FTX was known for its high-profile advertising gimmicks, including commercials featuring comedian Larry David and the American football athlete Tom Brady.

The 25-year prison sentence serves to remind crypto entrepreneurs around the world that US regulators can strike quickly when it comes to the fintech sector.

The biggest loss, however, is usually borne by risk-taking investors.

• While Bankman-Fried’s lawyers tried to push for a prison sentence shorter than a few years, prosecutors wanted to see him in prison for 40 to 50 years.

• Bankman-Fried, a former billionaire, will also have to forfeit about $11 billion as part of the sentence.

• Bankman-Fried’s high-profile arrest, his disgraced return to the United States and the dramatic court proceedings in which his former colleagues and even a romantic partner testified against him, made headlines around the world.

This is a Premium item available exclusively to our subscribers. To read over 250 such premium articles every month You have exhausted your limit of free articles. Please support quality journalism. You have exhausted your limit of free items. Please support quality journalism. X You have read {{data.cm.views}} on {{data.cm.maxViews}} free articles. X This is your last free article.

Fuente

Perianne Boring, founder and CEO of the Digital Chamber of Commerce, says the lawmaker’s “false and misleading statements” should be investigated on “The Claman Countdown.”

THE growing diffusion of cryptocurrencies it has also led to more frequent and elaborate cryptocurrency scams over the years.

One such scam by a fraudulent cryptocurrency company called Centra Tech is now the subject of a new Netflix movie called “Bitconned”, which is scheduled for release on January 1st.

“Ray Trapani has always wanted to be a criminal, ever since he was a boy,” reads the film’s description. “In 2017, amid the economic frenzy of the bitcoin boom, there was no better place for cryptocurrency scammers. So when a friend of Ray’s approached him with the idea of ​​creating a cryptocurrency debit card, Trapani jumped at the opportunity. There was only one problem: he had no idea how to do it.”

Centra Tech is one of many recent, high-profile crypto scams that have resulted in millions and billions of dollars in losses for customers around the world.

DIGITAL ASSET MARKETS READY TO GROW IN 2024, SAYS GOLDMAN SACHS EXECUTIVE

Here are some of the most infamous cryptocurrency fraud schemes in history:

Tech Center

Principal co-founder Sohrab Sharma, along with Robert Farkas and Trapani, founded Centra Tech in 2017. The company advertised cryptocurrency financial products, including a so-called cryptocurrency debit card they dubbed the “Centra Card.”

The company tricked customers into believing they could use the card to make payments at establishments that accepted Visa or Mastercard payments. They also convinced investors to purchase unregistered securities in the form of digital coins, or “Centra Tokens,” according to the Justice Department.

BITCOIN “BONNIE AND CLYDE” PLEAD GUILTY OF MONEY LAUNDERING HACKED CRYPTOGRAPHY

The founders founded Centra Tech on the lie that its fictitious founder, “Michael Edwards,” had more than 20 years of banking experience and a master’s degree from Harvard. They also perpetuated other lies “that Centra Tech had partnered with Bancorp, Visa, and Mastercard to issue Centra cards licensed by Visa or Mastercard” and “that Centra Tech had money transmitting and other licenses in 38 states, among others claims,” the DOJ. said in a press release.

All three co-founders have since been convicted and sentenced to prison, according to the Securities and Exchange Commission.

“Sohrab Sharma conducted a scheme to deceive investors by falsely claiming that the startup he co-founded had developed cutting-edge, fully functional cryptocurrency-related financial products,” Ilan T. Graff, a U.S. lawyer, said in a statement of 2021. “In reality, Sharma’s most prominent inventions were the fake executives, fake business partnerships, and false licenses that he and his co-conspirators advertised to trick victims into handing over tens of millions of dollars.”

FTX

FTX, a bankrupt and fraudulent cryptocurrency company, made national headlines this year when its founder Sam Bankman-Fried was indicted in February and put on trial Manhattan Federal Court.

FTX founder Sam Bankman-Fried appears in federal court during his fraud trial in Manhattan, New York on October 26, 2023. (Jane Rosenberg/Fox News)

In November the court found Bankman-Fried guilty of defrauding investors, clients and lenders who took part in the collapse of his crypto empire in one of two criminal trials has faced.

THE TRIAL AND VERDICT OF SAM BANKMAN-FRIED IN PICTURES

The collapse of FTX wiped out about $1 billion in client funds.

“Sam Bankman-Fried perpetrated one of the largest financial frauds in American history.”

– US Attorney for the Southern District of New York Damian Williams

Bankman-Fried was charged with two counts of wire fraud and five counts of conspiracy. Prosecutors alleged that the 31-year-old founder of FTX and its sister hedge fund, Alameda Research, misappropriated and siphoned billions of dollars from FTX client deposits, planning to mislead investors and grooming other executives at his companies to do the same.

Sam Bankman-Fried, co-founder of FTX Cryptocurrency Derivatives Exchange, arrives in court in New York on January 3, 2023. (Stephanie Keith/Bloomberg via Getty Images / Getty Images)

“The cryptocurrency industry may be new. The players, like Sam Bankman-Fried, may be new. But this type of corruption is as old as time,” said US Attorney for the Southern District of New York Damian Williams after the announcement of the verdict.

THE FTX AND SAM BANKMAN-FRIED TRIAL: THE PLAYERS

The founder of FTX, who amassed an estimated net worth of $26 billion before his company filed for bankruptcy last year, also testified during his trial. He admitted he had made mistakes but maintained his innocence, saying he had not defrauded anyone.

BitConnect Ponzi Scheme

The FTX scam has often been compared to the BitConnect Ponzi scheme.

BitConnect, which has since collapsed, was a fraudulent cryptocurrency investment company that at one point reached a peak market capitalization of $3.4 billion, according to the Justice Department.

SEC KEEPS CALLS WITH SPOT BITCOIN ETF SPOTLIGHTERS AS POSSIBLE APPROVAL GEARS CLOSER

A San Diego federal grand jury last year indicted the founder of the company, the Indian Satish Kumbhani. Kumbhani is alleged to have deceived investors about the company’s “loan program,” which in reality operated as a Ponzi scheme by paying off BitConnect’s early investors with funds from new investors.

Prosecutors say Kumbhani and his co-conspirators received a total of $2.4 billion from BitConnect investors.

“This indictment involves a massive cryptocurrency scheme that defrauded investors of more than $2 billion.”

– U.S. Attorney Randy Grossman for the Southern District of California

“As cryptocurrency gains popularity and attracts investors around the world, alleged scammers like Kumbhani are using increasingly complex schemes to defraud investors, often stealing millions of dollars,” Special Agent in Charge Ryan L. Korner said in a statement of the Los Angeles field office of IRS Criminal Investigation. 2022 statement announcing indictment against Kumbhani.

OneCoin and the ‘Crypto Queen’

Ruja Ignatova, a Bulgarian woman Known as the “Cryptoqueen,” she is accused of defrauding millions of investors worth an estimated $4 billion through her fraudulent cryptocurrency company, OneCoin, since 2014.

FBI ADDS “CRYPTOQUEEN” TO TEN MOST WANTED LIST

Ignatova is on the FBI’s 10 Most Wanted list. Authorities believe she may have received assistance from armed guards or associates and she may have altered her appearance after traveling to Athens, Greece, in 2017. Her co-founder, Karl Sebastian Greenwood, was sentenced to 20 years in September.

Ruja Ignatova, a Bulgarian woman known as the “Cryptoqueen,” is accused of defrauding millions of investors worth an estimated $4 billion through her fraudulent cryptocurrency company, OneCoin, starting in 2014. (FBI/Fox News )

OneCoin marketed a fraudulent cryptocurrency to unsuspecting investors around the world.

“As the founder and leader of OneCoin, Karl Sebastian Greenwood operated one of the largest fraud schemes ever perpetrated. Greenwood and his co-conspirators, including fugitive Ruja Ignatova, swindled unsuspecting victims out of billions of dollars with the promise of a ‘ financial revolution’ and claims OneCoin is the ‘bitcoin killer,’” Damian Williams said in a September statement.

“In fact, OneCoin was completely worthless and investors were left with nothing, while Greenwood lined his pockets with over $300 million.”

SEC COULD MAKE CRYPTO HISTORY IN THE NEW YEAR WITH APPROVAL OF FIRST SPOT BITCOIN ETF

Ignatova, who is charged with conspiracy to commit wire fraud, conspiracy to commit money laundering, conspiracy to commit securities fraud and securities fraud, allegedly told investors to transfer funds to their OneCoin accounts to purchase packages OneCoin, according to the Department of Justice.

Bitclub network

Similarly, BitClub Network was a $722 million fraudulent cryptocurrency scheme “that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors into the scheme” between 2014 and 2019, according to the Department of Justice.

Several people, including BitClub Network creator Matthew Brent Goettsche and Silviu Catalin Balaci, Russ Albert Medlin, Jobadiah Sinclair Weeks, Joseph Frank Abel and Gordon Brad Beckstead, have been charged in connection with the scheme.

A representation of bitcoin, June 23, 2017. (Benoit Tessier/File Photo/Reuters Photos)

Goettsche, Balaci, Abel and Weeks were all released on bail in 2020 and await sentencing hearings.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

“The indictment describes the defendants’ use of the complex world of cryptocurrencies to take advantage of unsuspecting investors,” U.S. Attorney Craig Carpenito said in a 2019 statement. “What they allegedly did amounts to little more than a modern high-tech Ponzi scheme that defrauded victims of hundreds of millions of dollars Working with our police our partners here and across the country, we will ensure that these scammers are held to account for their crimes.”

The suspects spent their money “lavishly” defrauding investors, who Goettsche described as “stupid” and “sheep.” He also said that he was “building the entire model on the backs of idiots,” according to the Justice Department.

Fox News’ Breck Dumas contributed to this report.

Fuente

Remember dial-up Internet connection? The growling siren crescendo that signaled your intention to browse the World Wide Web?

Nearly 30 years later, we are a long way from those initial forays. Today, nearly nine in ten Americans use the internet, and in our ever-expanding economy, cryptocurrency isn’t an idea out of reach—it’s reality. However, the most eye-catching recent technology is blockchain, the technology behind cryptocurrency, which could be a game-changer for the global economy.

Still in its early stages, mainstream blockchain integration may still be years away, but some predict it will be as revolutionary as internet adoption. Just as the Internet has disrupted the way we share information, blockchain has the potential to revolutionize the way we exchange value, transfer ownership, and verify transactions.

Blockchain technology is currently being pioneered across industries, from financial services to manufacturing. Other industries, such as retail, are also starting to experiment with potential applications. In the long term, blockchain could enable a transformation of operating models across industries.

Just as the Internet has disrupted the way we share information, blockchain has the potential to revolutionize the way we exchange value, transfer ownership, and verify transactions.

What is Blockchain?

In short, blockchain is an encrypted digital database shared by multiple parties in a distributed network. Any transaction that occurs on the network is recorded, verified and stored in a database. Transactions are broadcast to all network participants, creating an unalterable transaction ledger.

Blockchain is based on a technology where multiple copies of data exist over a network, rather than a single server or database. Since no centralized authority, or institution, controls it, participants can access the same version of the data in near real time. Decentralized management allows for faster and less expensive transaction processing, while allowing untrusted participants to reach a consensus on the state of the database.

Types of Blockchain

Beyond the underlying technology, blockchain is classified into two spectrums: public blockchain and permissioned blockchain. A public blockchain is a transparent record of transactional activities that occur in a given network. The network is open and anyone can run the open source software on their computer to join the network. Due to the large scale of the network, agreeing on the status of the ledger can be time-consuming and often energy-consuming. Digital currencies like Bitcoin and Ether use a public blockchain to transfer value and record ownership.

Alternatively, a permissioned blockchain has an owner, typically a utility, company, or consortium of businesses. Selected participants must be allowed to join the network, which has a unique algorithm for reaching consensus on the status of the registry. The network is often faster than public blockchains. An example of a permissioned blockchain is Quorum. The Quorum platform was developed by JP Morgan and uses blockchain technology to process private transactions.

The advantages of Blockchain

Blockchain could potentially disrupt traditional business models and automate certain processes, so that companies can reallocate resources towards activities that generate more value. Additional potential benefits for businesses could include:

Greater transparency
By design, blockchain allows multiple participants to view the entire lifecycle of a digital ledger. It also provides a verifiable trace of all transactions on the blockchain. This essentially results in a “golden” source of truth that all participants in a network can trust, allowing them to exchange value or information with each other, without the involvement of a third party.

Savings
Blockchain allows for shared infrastructure between parties. In business, some processes require duplication of information, including many reconciliation cycles. By sharing infrastructure and trusting technology, the respective parties could save time and money.

Operational efficiencies
Smart contracts enable the synchronized execution of a transaction between participants. In other words, many processes can be automated, freeing up resources for other opportunities.

Improved security
Network participants trust distributed ledgers because blockchain encrypts transactions in a digital database, and the transaction history itself is immutable. These encryption techniques, the process of converting plain text into gibberish to protect it during transmission, are used to create unique fingerprints that must be verified before any changes are made.

The absence of third parties makes this technology completely decentralized and innovative.

What is the future of Blockchain?

Although blockchain is still emerging, it is advancing rapidly. Even as buzz continues to grow, there are still limits to widespread adoption, including technical hurdles such as scalability, data privacy, and technology standardization. Furthermore, blockchain requires the need for a market-wide understanding of the application of the technology compared to the current existing regulatory framework. Additionally, there are technical challenges related to security. To date, security breaches are related to human and user error, rather than underlying technology, but these vulnerabilities must be addressed.

Developing the right tools and addressing these limitations will take time, but continued investment in blockchain technology will likely solve many of these problems and challenges faced, similar to other technological revolutions in the past. Maybe in 30 years, like the Internet, blockchain will be a common technology and we will look ahead to the next innovation.

Learn more about Technological trends and subscribe to the podcast.

Fuente