8 People Suspected of a Crypto Ponzi Scheme Were Arrested in Japan

According to the local news outlet, the enforcement agencies in Tokyo took 8 people in custody in connection with their possible participation in a gigantic pyramid scheme involving cryptocurrencies.

The police state that almost 6 thousand people became victims of the scheme and lost their crypto. The total amount of money stolen amounted to whopping 7.8 billion Japanese yen (almost 70 million dollars). Allegedly, the fraudsters were organizing different events and seminars and raised funds there, promising a huge return on the “investments”.

Out of 8 arrested people, 6 have already pleaded guilty. They will be charged with the violation of multiple financial regulations of Japan.

We remind you:

The Twitter Account of Google Was Hacked to Promote a Scam BTC Giveaway

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The Cofounder of the Infamous Cryptocurrency Exchange QuadrigaCX Turned Out to Be a Convicted Criminal

The digital assets exchange platform QuadrigaCX has recently become an epicenter of various scandals and controversies. We have already reported earlier about another cofounder of the exchange Gerald Cotten.

Cotten died in the age of 30, leaving his wife and the exchange employees with massive amounts of missing money and the total confusion in the financial situation on the platform, considering the fact that he mixed his own funds with the funds of Quadriga.

However, now the exchange has to deal with an even more serious issue. It is suspected that the second cofounder of QuadrigaCX, Michael Patryn changed his name to escape criminal prosecution.

According to the report made by Bloomberg, Michael Patryn might be the same person as Omar Dhanani, a person suspected of committing multiple offenses in the United States.

Allegedly, Dhanani changed his last and first name in 2003 and 2008 correspondingly, after being convicted in multiple crimes, including credit card scams, identity theft, burglary, larceny, and receiving a 18-month sentence in federal prison.

Michael Patryn denies all the accusations and claims that Omar and him are two completely different people.

However, he failed to provide any decent proof of his activities starting from the early 2000s. Patryn only mentioned that he worked for various crypto-related businesses during that time period.

The Canadian authorities are currently investigating the situation at the exchange QuadrigaCX, regarding both the financial troubles caused by Gerald Cotten and the accusations against Michael Patryn or Oman Dhanani.

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Donald Trump Might Have Increased His Wealth Due to Some Shady Business with Deutsche Bank

Donald Trump has undoubtedly won the title of the most eccentric president of the United States. Given the amount of accusations, convictions and general displeasure, it is a wonder how he has not been impeached yet. However, this new endeavour might put the last bits of his reputation at stake.

The New York Attorney General started an investigation regarding the financial relationship between the Trump Organization and Deutsche Bank. Reportedly, the major German bank has provided over 2 billion dollars in loans to the American president over the years.

The misconduct of Trump

The story begins in 2004, when Trump first encountered Deutsche Bank. The businessmen went to the real estate department and filed for a loan for his 92-story Trump International Hotel and a Trump Tower in Chicago.

At first sight everything seems fine, but it surely isn’t. When asked about the financial situation, Trump claimed to own a much larger sum of money than he actually had back then. Simply speaking, he lied to the bank about his net worth.

Mr. Trump told Deutsche Bank his net worth was about $3 billion, but when bank employees reviewed his finances, they concluded he was worth about $788 million, according to documents produced during a lawsuit Mr. Trump brought against the former New York Times journalist Timothy O’Brien,” is mentioned in the investigation files.

The weird thing is that although the bank officials surely suspected something, they didn’t take time to check and verify the information provided by Trump. Instead of that, they kept loaning him massive amounts of money.

In 2010 Trump received a 100-million-dollar loan from the Deutsche Bank to built a resort in Florida. Experts claim that he deliberately increased his net worth by almost 70% in the application in order to get the money.

In 2014 the current US president tried to purchase the popular football team Buffalo Bills. When the NFL demanded the proof that he would have enough finances to conduct the deal, Trump claimed that he owned almost 9 billion dollars, and this all happened through Deutsche Bank once again.

Right now, the authorities are finally starting to see the whole picture and its scale. The investigation has already started. Faking net worth to get such huge loans might result in big problems for both Trump and Deutsche Bank.

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CryptoMining.Farm Scam: 30 Victims Lost $1.34 Million

Thirty people have filed complaints to Thailand’s Technology Crime Suppression Division stating that they were victims of crypto mining scam, they allegedly lost 42 million baht ($1.34 million). The police thinks that the amount of victims can be bigger.

According to the victims’ words, the leaders of the scam convinced them to invest money into CryptoMining.Farm, a blockchain-mining website. One anonymous victim said to the Bangkok Post that one of the leaders promised investor an impossibly high return – 70% a year.

The victims signed contracts when they entered the website, the documents said that a customer may withdraw money at any time he/she wanted without any additional condition. However, the situation has changed since August. The victim stated that:

“From August the owner began imposing conditions for withdrawing the money. Then at the start of this month, the site announced it would start paying back investors in 84 installments which would take over seven years to complete. The payments were supposed to be made in foreign currencies [which] is not permitted by Thai laws.”

After a preliminary investigation, the police is sure that not 30, but 140 people became victims of the scam. Moreover, it can be related to a big scandal which happened in August 2018, when a popular Thai actor and his siblings stole about 797 million baht ($25.5 million).

According to the Bangkok Post, the company has two official offices in Bangkok and Chiang Mai, which may make the victims think that the company’s operations are legal.

Thailand treats digital money with caution and tries to regulate it. The Thai Ministry of Finance even issued a document last year where all the country’s cryptocurrency activities were regulated, including the taxation of participants of crypto market.

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Romance Scams: Total Loss Accounts For More Than $143 Million

The Federal Trade Commission (FTC) has recently published a report showing that romance scams are relentlessly gathering momentum. The number of romance scams has increased in 2.5 times, from 8,500 in 2015 to 21,368 last year, overtaking the number of any other type of consumer fraud.

Romance scams data

The data provided below shows that in 2015 the number of reports did not exceed 10,000, and the total loss was estimated at about $33 million. The situation has been worsening since 2016, when the reported loss accounted for $75 million, two times bigger than in 2015. However, the year of 2018 broke all the records when the total loss comprised over $143 million.   

Source: www.ftc.gov

How do scammers lure people?

Romance scammers usually create attractive and convincing personas on the dating sites and apps or social media, like Facebook, for example. They frequently use fake photos and names, but there were cases of assuming the identities of real people. The scammers lure people with their sob stories to convince victims to send them large amounts of money.

Once the romance scammers have people by the heartstrings, they say they need money for medical treatment or for any other quite sad reason. The fraudsters usually explain to victims that they are in the military and stationed abroad, thus, they cannot meet. The report says that most affected are people from 40 to 69, the rate of their losing money to romance scams is higher more than twice in compare to the rate of people in their 20s.

Tips how to not get engaged in a romance scam

  1. Do not send money or anything else to the sweetheart you have never met in person before.
  2. Tell your close friends about your sweetheart. People can become blinded when they are in love, thus, pay attention if your friends or family are concerned.
  3. Do not rush, just take it slowly. Try to ask questions, use a reverse-image search of the profile picture. If something does not match, it is a scam.

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The Monetary Authority of Singapore Warns Public About Scammers Who Are Trying To Sell Non-Existent National Cryptocurrency

While Iran is finding ways to adopt state-backed cryptocurrency, Singapore is fighting with rumours about launching its own cryptocurrency. The Monetary Authority of Singapore (MAS) announced that the state would not release any cryptocurrency.

The regulator posted a statement on the website:

“The MAS warns members of the public not to be misled by fraudulent websites that solicit investments in cryptocurrencies using fabricated information attributed to the Singapore Government.”

According to the MAS, scammers try to sell Singaporean cryptocurrency across the web. They create fake articles and news, mentioning respected news outlets, and spread that Singapore is launching a national cryptocurrency. Moreover, they state that the government chose a specific company to trade that cryptocurrency.

People, who are not engaged in cryptocurrency world, and who are not aware about latest news in it, should be extremely careful, as they often become victims of such crimes.

We remind you:

Scammers Try to Impersonate Major YouTube Influencers

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Scammers Try to Impersonate Major YouTube Influencers

Cyber criminals tried to pull of a huge scam by taking the disguise of the most popular YouTube celebrities, like Zoella and Jeffree Star. The scammers wrote messages to the subscribers, pretending to be real YouTubers. 

The messages contained a link, which supposedly led to a prize, but it obviously was a scam. The YouTube users subscribed to such large-scale channels as James Charles, Jeffree Star, Zoella, Rita Ora and others claimed to have received them.

One of the influencers, whose name appeared in the fraudster scheme, Philip DeFranco mentioned it in one of his videos. He warned his subscribers and asked them not to open the malicious link.

Moreover, he wrote about the scam on Twitter and soon get a response from YouTube.

The YouTube management promised to deal with the problem. They also encouraged YouTube viewers to ignore such messages and blocking the accounts sending them.

We remind you:

YouTube Will Remove All Videos with Dangerous Pranks and Challenges

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