The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has reiterated his view that crypto is a field full of noncompliance. While noting that crypto is a small piece of the overall U.S. financial market that his agency oversees, the SEC chair emphasized that it is “an outsized piece of the scams […]
Bitcoin News
Hong Kong Regulator Warns of 2 Entities Suspected of Crypto Frauds
Hong Kong’s financial regulator has warned the public about two entities suspected of crypto frauds. In addition to issuing cease and desist letters to relevant website operators requesting them to cease offering crypto tokens for purchases, the regulator advises the public to “be cautious about too-good-to-be-true investment opportunities and advice posted on social media platforms and via instant messaging apps.”
Hong Kong Regulator’s Crypto Fraud Warning
The Hong Kong Securities and Futures Commission (SFC) issued a notice on Wednesday, warning the public of two entities suspected of involvement in virtual asset-related frauds. The two entities are Hong Kong Digital Research Institute, aka Hong Kong DAO, and Bitcuped. According to the notice:
At the SFC’s request, the Hong Kong Police Force has taken steps to block access to the websites of Hong Kong DAO and Bitcuped. The SFC also issued cease and desist letters to relevant website operators requesting such websites to cease offering for purchase a token issued by Hong Kong DAO.
Hong Kong DAO has issued a token known as HKD, which is available for purchase on its website. The SFC suspects that the entity may be disseminating false and misleading information about itself and its business through online channels.
Similarly, the financial regulator noted that Bitcuped has made false claims. For example, its website shows that Laura Cha and Nicolas Aguzin serve as its chairman and chief executive officer respectively, when in fact none of them has any affiliations with Bitcuped.
The Hong Kong regulator also warned investors: “Online investment scams may involve any type of assets and are perpetrated through multiple channels. Those who fall victim can suffer substantial losses.” The SFC advises the public to “be cautious about too-good-to-be-true investment opportunities and advice posted on social media platforms and via instant messaging apps, on which they may be lured to invest by individuals who are not investment professionals.” The regulator concluded:
Investors should stay vigilant and beware of fraud when making investment decisions.
What do you think about the warnings by Hong Kong’s Securities and Futures Commission? Let us know in the comments section below.
Banking Scams Overtake Crypto Frauds in Ireland
Fraudsters targeting victims in Ireland are increasingly posing as bank officials rather than crypto promoters, the local press reported quoting police. Amid the growing trend, Irish investors have lost millions of euros to this type of schemes this year, with law enforcement authorities having recovered only a fraction.
Criminals Drop Crypto Frauds in Favor of Banking Scams
Cryptocurrency frauds are being replaced by scams in which criminals pose as representatives of reputable traditional banks, the Irish Independent revealed in an article. Investigators are working on multiple cases of fraud over fiat investments.
Nearly €20 million (over million) have been stolen from Irish citizens in these online fraud schemes since January, of which officers from the Garda National Economic Crime Bureau (GNECB) have managed to recover around €4 million, the report detailed.
While previously accounting for over 95% of the registered cases, crypto scams are no longer the most prominent type of investment fraud, investigators claim. A police source quoted by the newspaper explained:
In the last few months, what has become more and more common is that victims have been contacted often by phone or by email by fraudsters who are saying they work for legitimate, high-profile British banks or trading houses.
Meanwhile, cryptocurrency has lost some of its popularity among investors due to major scandals and court cases, the person added, elaborating: “So inevitably the organized gangs behind this are changing tack and the evidence is that the banking scams are the way they are making the most money now in terms of investment fraud, which is absolutely massive at the moment.”
The organizers of the banking fraud schemes often set up fake websites offering investment products or clone real online platforms. Victims are pressured to act quickly or make an urgent payment, transfer funds directly or download software which drains their bank accounts.
Ireland is a participant in an international law enforcement operation led by Interpol which resulted in the arrest of 975 suspects worldwide last year and the recovery of over €123 million as well as the blocking of almost 2,800 bank and crypto accounts linked to online financial crime.
What do you think about the new trend in online scams? Share your thoughts on the subject in the comments section below.
US Judge Rules ICO Frauds Fall Under Securities Law
A federal judge has ruled that a criminal case against an alleged ICO fraudster will proceed to trial, saying existing securities laws apply.
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Many ICOs May Be Frauds, Says Hong Kong Securities Watchdog
The deputy head of Hong Kong’s Securities and Futures Commission has taken a skeptical tone in statements on initial coin offerings.
CoinDesk
Money Manager Josh Brown: ‘ICOs Are Where The Frauds Will Take Place’
Josh Brown, the money manager and bitcoin bear-turned-bull, had some harsh words for initial coin offerings (ICOs) in a new blog post.
CoinDesk
Money Manager Josh Brown: ‘ICOs Are Where The Frauds Will Take Place’
Josh Brown, the money manager and bitcoin bear-turned-bull, had some harsh words for initial coin offerings (ICOs) in a new blog post.
BitNewz.net