Be Aware of Bitcoin and Cryptocurrency SCAMs

Posted on by Steven Dobson

The article below was written by Kevin Reynolds and posted on coindesk.com on March 26, 2021.

Bitcoin and Cryptocurrency SCAMs exists because people are:

  • Still
  • Confused
  • About
  • Money

I highly recommend anyone wanting to know more about MONEY watch a video series by Michael Maloney called The Hidden Secrets of Money!

There have been SCAMs associated with Bitcoin since criminals decided they could put up websites and take advantage of the desires of unknowing hard-working people that were looking for ways to earn a living online.

These websites fall under the description of “Promise to Pay” companies or websites.

They promise to pay you a certain daily, weekly, or monthly percentage on your Bitcoin or cryptocurrency deposits into a wallet controlled by them.

They have a referral program so that you can refer others and help grow your Bitcoin or other cryptocurrencies faster.

In countries outside of the United States, you may have to get a VPN to join their opportunity.

They make a few payments to provide a little social proof, and they disappear with your Bitcoin or cryptocurrency and set up shop on another website.

Bitcoin and Cryptocurrency SCAMs

Over the years the schemes have gotten more elaborate and last a lot longer than a few weeks, months, and some have lasted for years, but in the end, the bottom always falls out, and they disappear.

I know because when I first got involved in Bitcoin hack in 2017, I was involved in a Bitcoin and Cryptocurrency Scam.

They promised to pay me and others a certain daily percentage on our Bitcoins, and they were paying daily.

Then one day without warning, they instituted an admin fee and would not let you have access to your account until you paid your admin fee.

Since they were delivering on their promise to pay daily, a lot of users paid their admin fee and expected things to continue as they were. The smart people got out as soon as they could get access to their Bitcoins.

The people that felt they were apart of something legitimate kept their Bitcoin in their accounts expecting to get paid. Within a few days, those remaining could not access their accounts, and within a day, the website was gone and so were our Bitcoins.

Here is How You Stop Getting Involved in Bitcoin and Cryptocurrency SCAMs!

  1. Stop giving up control of your Bitcoin and Cryptocurrencies!
  2. Be Wary of ANY Website or Company Asking You to Deposit Your Bitcoins or Cryptocurrencies in An Account Controlled by the Website!
  3. Legitimate Trading Companies Can Access Your Wallet Through Your Exchanges API Keys
  4. Do NOT Store Your Bitcoins or Cryptocurrencies in Your Exchanges Wallet. Get a Cold Storage Device!
  5. Conduct Your Own Due Diligence Before You Get Involved in Any Bitcoin or Cryptocurrency Opportunity!

Read the article below, leave a comment, and subscribe to my blog so that you can be notified when new content is posted.

As always, conduct your own due diligence so that you can make an educated decision instead of one based on emotions.

Some people tend to buy on emotions and try to justify their purchase with logic!

For a Cryptocurrency Trading Platform that does not take control of your cryptocurrency, check out Copy Pro Traders!

The article below can be found at the following website URL:

https://www.coindesk.com/uk-man-ordered-to-pay-more-than-571m-for-fraudulent-bitcoin-trading-scheme-cftc

UK Man Ordered to Pay More Than $571M for Fraudulent Bitcoin Trading Scheme: CFTC

The man solicited at least 22,190.542 bitcoin, valued at about $143 million at the time, from more than 1,000 customers worldwide.

Kevin Reynolds

 

Mar 26, 2021 at 5:21 p.m. EDT

The U.S. District Court for the Southern District of New York entered a default judgment against a U.K. man, for operating a fraudulent scheme to solicit Bitcoin (BTC, +1.65%) from members of the public and misappropriated that bitcoin, the Commodity Futures Trading Commission (CFTC) said in a release.

  • According to the court’s March 2 order, Benjamin Reynolds, purportedly of Manchester, England, was ordered to pay nearly $143 million in restitution to defrauded customers and a civil monetary penalty of $429 million, the CFTC said.
  • Reynolds also is permanently enjoined from engaging in conduct that violates the Commodity Exchange Act and CFTC regulations, registering with the CFTC, and trading in any CFTC-regulated markets.
  • Between May 2017 and October 2017, Reynolds used a website, social media accounts, and email to solicit at least 22,190.542 bitcoin, valued at about $143 million at the time, from more than 1,000 customers worldwide, including at least 169 individuals living in the U.S., according to the release. 
  • Among other things, Reynolds falsely represented that his company traded customer bitcoin deposits in virtual currency markets and employed specialized virtual currency traders who generated guaranteed trading profits.
  • The judgment is the result of a 2019 enforcement action brought by the CFTC.

 

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