Warnings Issued by MFSA and Central Bank of Samoa Regarding Cryptocurrency Scam Cases

dan saada By dan saada April 27, 2019 Off
Malta Financial Services Authority

Jonathan Levin, COO of Chainalysis, states Law enforcement investigations related to cryptocurrency cases are mostly related to Bitcoin.

Levin further added, “Homeland Security and the DEA have actually become really good at apprehending those people.” When talking about the ability of people to pay in cryptocurrency to pharmacies in China or to other distributors of fentanyl.

Customers gave money to Quadriga to buy Bitcoin; what the customers did with it continues to be a mystery.

The feds are not still able to find the Nigerian scammers who stole $50 K in Bitcoin.  The Nigerian nationals have defrauded the US residents by way of several Bitcoin Investment scams.  The duo is facing a 13-count indictment, which includes conspiracy to commit wire fraud.  While the duo claimed to use unique trading methods, they were, in reality, sending the Bitcoin to their own Wallets.  This they eventually converted to Nigerian Naira according to the prosecutors.  These are high return cryptocurrency investment scams, and they are not new.

Scammers are prepared to go to any length to grab cryptocurrency from their victims.  This is inclusive of false claims of accreditation to the FCA (Financial Conduct Activity), threatening, impersonating police, authorities, and celebrities.  It now seems like for as long as there are cash and Bitcoin, there will be criminals who will be using it.

The Malta Financial Services Authority (MFSA) has issued guidance which will warn the public about the risks involved in cryptocurrency investments.  The guidance was meant to educate people about avoiding scams, frauds and related schemes.

The Central Bank of Samoa has recently issued warnings about a “Hybrid Ponzi Pyramid Scheme” which is related to One Coin after they received a report from the New Zealand Police.

Konstantin Ignatov in Los Angeles was involved in a wire fraud conspiracy charge and was announced as arrested by the US Department of Justice regarding, “An international pyramid scheme that involved the marketing of a fraudulent cryptocurrency called OneCoin.” The US Department of Justice stated that the victims had invested billions of dollars worldwide in the “Fraudulent” cryptocurrency.

In connection with all of these facts, the Central Bank of Samoa has warned its investors to be aware of OneCoin operations. They published a statement from the US Department of Justice which read: “Manhattan U.S. Attorney Announces Charges against Leaders of “OneCoin,” A Multibillion-Dollar Pyramid Scheme Involving the Sale of a Fraudulent Cryptocurrency.”

One-Coin according to the warning has the essential ingredients of Ponzi Schemes and Pyramid Scheme.  The warnings also state that the Bank Accounts of Churches might also have been compromised.