Crypto Fraud News

cryptocurrencies has disrupted the global financial landscape, creating both opportunities and risks for investors. With the entry of new and credible players in the crypto space and the possibilities of blockchain technology, cryptocurrencies have become significant growth drivers. However, the rising number of scams in the crypto space has become a concern for investors, with reports indicating that illicit addresses sent nearly $23.8 billion worth of cryptocurrency in 2022 alone. As the crypto industry continues to grow, it is imperative for businesses to prioritise security and regulatory compliance of their operations to prevent any potentially questionable transactions. The Finance Ministry's recent announcement of including crypto businesses under the Prevention of Money-laundering Act, 2002 highlights the increasing importance of regulatory compliance in the crypto space. Any exchange involving virtual digital assets and fiat currencies, exchange between multiple forms of virtual digital assets, and transfer of digital assets will now be subject to the same anti-money laundering standards as other regulated entities. These developments are not unique to India, as other regions such as the EU, US, and Singapore have also implemented similar laws and regulations, such as the Markets in Crypto-Assets (MiCA) provisional agreement, the Framework for International Engagement on Digital Assets, and guidelines by the Monetary Authority of Singapore's Payment Service Act.

Global cryptocurrency exchange Binance had secret access to a bank account belonging to its purportedly independent US partner and transferred large sums of money from the account to a trading firm managed by Binance CEO Changpeng Zhao, banking records and company messages show.

Bankrupt crypto exchange FTX said in a report to creditors on Tuesday that about $415 million in cryptocurrency had been stolen as a result of hacks.

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A case of fraud linked to cryptocurrency has been reported in the national capital, with a group of investors being duped of up to Rs 500 crore after being assured of massive 200 percent returns on their investment within a year, a report said on December 29.

Cryptocurrency assets are highly speculative and investors in them need more protections or they could lose trust in the markets, Gary Gensler, chair of the U.S. Securities and Exchange Commission, said on Monday. Generally, people who buy cryptocurrencies do not get the disclosures they get when they make other asset purchases around things like whether the trading platform they are using is actually trading against them, or whether they actually own the assets they store in digital wallets, Gensler said. «We have this basic bargain: You the investing public can make your choices about the risk you take, but there is supposed to be full and fair disclosure, and people are not supposed to lie to you,» he said at the Financial Industry Regulatory Authority's annual conference in Washington.

Blockchain company Ronin said on Tuesday that hackers stole cryptocurrency worth almost $615 million from its systems, in what would be one of the largest cryptocurrency heists on record.

cryptocurrency executive and civil charges against him and his sister, accusing them of defrauding retail investors out of millions of dollars with a digital token known as Ormeus Coin. In papers filed in Manhattan federal court, the Justice Department said John Barksdale lied about the value and profitability of Ormeus Coin's mining assets, including that the coin was backed by a $250 million mining operation generating more than $5 million of monthly revenue. Barksdale and his sister JonAtina Barksdale were separately charged by the Securities and Exchange Commission with conducting fraudulent unregistered offerings of Ormeus Coin.

The number of arrests in a Rs 40 crore cryptocurrency fraud in Nagpur in which over 2,000 investors were duped reached 11 on Sunday, a day after the main accused, his wife, and two associates were held from Lonavala in Pune, police said.

The money garnered from cryptocurrency-related scams and crimes worldwide touched almost $7.7 billion, reaching an all-time high in 2021,  surging almost 81 percent over the last year, per the Chainalysis' 2022 Crypto Crime Report.