Category: Bitcoin Scams

CFTC Shows Force Against Crypto Scammers, but Maintains ‘Do No Harm’ Approach

This week, a United States federal district judge ruled that an allegedly fraudulent crypto token meets the definition of a commodity. That brought the case under the Commodity Futures Trading Commission’s (CFTC) purview, which has long argued that virtual currencies constitute commodities. Here what it means — and how the watchdog has been supporting its […]

CEO Behind GAW Miners, PayCoin Ponzi Scheme Sentenced to 21 Months in Prison

Homero Joshua Garza, the CEO of the now-defunct U.S. crypto firm GAW Miners, has been sentenced to 21 months in prison for defrauding investors, local news agency Hartford Business reports Thursday, September 13. Garza received the verdict in the Hartford federal court, following his guilty plea to a wire fraud charge related to creating and […]

Founder of Crypto Exchange OKEx Allegedly Detained on Crypto Fraud Charges in China

Star Xu, the founder of exchange services provider OKCoin and the world’s second-largest crypto exchange OKEx, has allegedly been detained in China in relation to suspected digital currency fraud, local news outlet Sina News reports September 11. According to the news outlet, Xu is currently being held in the Shanghai Weifang Xincun police station, and […]

Indie Game Delisted From Steam Marketplace for Alleged Cryptojacking and Scams

Valve Corporation has removed a game from its video game marketplace Steam that allegedly hijacked users’ computers to mine cryptocurrency, Motherboard reported July 30. The Steam game store has delisted Abstractism, an indie game accused of deceptive practices and cryptojacking, and has banned its developer from the platform. Steam took action following complaints from a […]

BitFunder Founder Pleads Guilty to Charges of Fraud and Obstruction of Justice

The operator of now defunct Bitcoin (BTC) stock exchange BitFunder has pleaded guilty to federal charges of obstruction of justice and securities fraud, Reuters reports July 23. According to prosecutors, 37-year old Jon Montroll, also known as Ukyo, also pleaded guilty to obstruction of justice, admitting that he provided false balance statements to the U.S. […]

Elon Musk Is Impressed by Ethereum Scam Bots on Twitter

Billionaire entrepreneur and engineer Elon Musk has recently called attention to scam bots that impersonate famous people on Twitter to steal Ethereum (ETH) and other cryptocurrencies from their victims. Ethereum’s co-founder Vitalik Buterin subsequently reacted to Musk’s tweet, suggesting on July 9 that CEO of Twitter Jack Dorsey should take measures to ameliorate the situation. […]

Senior Opposition Member Demands Probe Into ‘Mega Bitcoin Scam’

An official from Indian opposition party the Indian National Congress (INC) has demanded a probe into a “mega Bitcoin scam,” The Hindu reports July 5. The scam supposedly involves leaders of the majority Bharatiya Janata Party (BJP). Senior INC member Shaktisinh Gohil alleged that BJP officials were complicit in a “multi-layered” scam to launder money, […]

Alleged Bitcoin Fraudster Renwick Haddow Extradited From Morocco To US

Renwick Haddow, a British citizen and alleged Bitcoin fraudster has been extradited from Morocco to the U.S. and appeared in a Manhattan District Court on Friday, the U.S. Department of Justice (DoJ) announced April 13. The DoJ complaint alleges Haddow, 49, “misappropriated investor funds” and “made false and misleading representations” to investors in Bitcoin Store, […]

FBI Publishes PSA About Tech Support Fraud Targeting Cryptocurrency Holders

The FBI’s Internet Crime Complaint Center (IC3) has published a public service announcement on March 28 warning about the prevalence of scammers posing as tech support for a variety of industries, including the cryptocurrency sector. The announcement defines tech support fraud as a “criminal claiming to provide customer, security, or technical support in an effort […]