This year has been monumental for the cryptocurrency sector in terms of mainstream adoption. A recent report published by Grayscale Investments found that more than one-quarter of United States investors (26%) surveyed own Bitcoin (BTC), up from 23% in 2020. With the holidays around the corner, financial services provider MagnifyMoney also found that nearly two-thirds of surveyed Americans hope to receive cryptocurrency as a gift this year. While crypto’s growth is notable, there has also been an increase in the number of scams associated with digital assets. A Chainalysis blog post highlighting the company’s “2022 Crypto Crime Report” revealed that …

The man behind a multi-million dollar cryptocurrency scam has pleaded guilty to fraud this week according to the United States Department of Justice. Ohio man Michael Ackerman could face up to 20 years inside following his guilty plea for defrauding investors in a crypto scam he orchestrated in 2017. The too good to be true scheme lured hundreds of investors who deposited USD into a crypto fund called the Q3 Trading Club, which promised 15% monthly returns. U.S. attorney for the Southern District of New York Audrey Strauss announced the guilty plea on Wednesday, stating that Ackerman admitted to causing …

Recent research has revealed that Eastern Europe remains a very high source of cybercrime activity — both from perpetrators of scams and users of darknet markets — in the cryptocurrency sector. Cryptocurrency addresses based in the Eastern European region have the second-highest exposure to illicit activity after Africa, according to a report published today by blockchain research firm Chainalysis. However, Eastern Europe has a much larger overall crypto economy than both Africa and Latin America (which came in third). The findings echo research carried out last year. The research analyzed the illicit share of cryptocurrency activity by region between July …

Glenn Arcaro, former director and promoter of the notorious BitConnect Ponzi scheme, has pled guilty to fraud charges related to his role in the now-defunct crypto exchange and lending platform. He has been ordered to pay back $24 million to investors. In a parallel action in the long-running saga, the United States Securities and Exchange Commission has charged BitConnect, its founder, Satish Kumbhani, former director Arcaro, and Future Money Ltd. for the scheme. The defendants are accused of running a fraudulent, unregistered securities offering that netted $2 billion. The latest developments come three years after BitConnect shut down its lending …

Turkish media reports that authorities there are investigating an alleged Dogecoin (DOGE) mining scam that pulled the rug on investors after amassing $119 million worth of deposits. A Monday report from local channel TV100 broke the news, with police identifying pseudonymous online avatar “Turgut V.” as the scheme’s suspected operator. Authorities believe that Turgut and 11 associates managed to gather close to 350 million Dogecoin, valued at $119 million, before disappearing. Turgut reportedly solicited investments from 1,500 Turkish citizens, drumming up excitement for the Dogecoin “mining” operation at in-person networking events held at ritzy locations and by using a Telegram …

Investigations into the South African company Mirror Trading International (MTI) — widely seen as last year’s most ruinous Bitcoin (BTC) Ponzi scheme — are now engaging the United States Federal Bureau of Investigation. MTI, which went into provisional liquidation in December 2020, claimed to have over 260,000 members across 170 countries at its height. It had first caught regulators’ attention in Texas back in July of last year, where its operations were quickly shut down. South Africa’s Financial Services Conduct Authority (FSCA) issued its own statement in August 2020, warning that the company lacked a mandatory license and was offering …

The U.S. Securities and Exchange Commission (SEC) is nearing settlements with four U.S.-based individuals accused of promoting the multi-billion dollar crypto Ponzi scheme, BitConnect. According to Law360, the terms of the settlements are currently awaiting final approval from Judge John Koeltl. The judge noted that while agreements’ terms are currently legally sound, minor fixes are needed to be made to ensure they are “scrupulously accurate.” The agreements include a more than $3 million settlement from Joshua Heppensen of Massachusetts and $576,000 from his fiancee Laura Mascola, $526,000 from Ryan Maasen of Oklahoma, and an unspecified amount from Michael Noble of …

The United States Securities and Exchange Commission has appointed New Jersey Attorney General Gurbir S. Grewal as Director of the Division of Enforcement. The appointment will be effective from July 26, with the SEC adding the veteran prosecutor to its ranks to play a key role in regulating financial markets in the U.S. “He has the ideal combination of experience, values, and leadership ability to helm the Enforcement Division at this critical time. I look forward to working closely with him to protect investors and root out wrongdoing in our markets," said SEC Chair Gary Gensler. Grewal is a replacement …

Raees Cajee, the co-founder of South African crypto investment platform AfriCrypt, has denied claims that he and his brother ran off with billions in investor funds, asserting the platform lost $5 million in a hack. Last week, Cointelegraph reported that AfriCrypt — an asset manager purporting to offer daily returns of up to 10% that launched in 2019 — had been accused of disappearing with 69,000 BTC of investor funds in a mysterious exploit. While AfriCrypt had notified users of the hack on April 13, suspicions were immediately raised as the message urged investors to avoid taking legal action as …

Around 69,000 Bitcoin (BTC) has vanished from a South African investment platform along with two brothers who owned the crypto firm. Although the facts are yet to be proven in court, if it turns to be an exit scam rather than a hack, it would be the biggest in history according to Bloomberg. There were warning signs for investors either way, with users reportedly promised returns of up to 10% a day. AfriCrypt was founded in 2019 and operated by brothers Ameer and Raees Cajee. It had reportedly amassed around 54 billion rands worth of BTC, or $3.6 billion at …

According to a report from blockchain analytics firm Elliptic, unregistered securities offerings represent more than half of all crypto fines handed out by U.S. regulators. In Elliptic’s June 21 Sanctions Compliance in Cryptocurrencies report, the firm's co-founder and Chief Scientist, Dr. Tom Robinson writes that U.S. regulators have handed out $2.5 billion in fines for crypto-related violations since 2014. Out of the total $2.5 billion, unregistered securities offerings accounted for $1.38 billion worth of penalties, or 55.19% of all fines dished out. Fraud was the second biggest crypto violation found in the report, accounting for 37.12% or $928 million worth …

Victims of an alleged $3.6 billion crypto Ponzi scheme in South Korea are reportedly hampering the progress of a police investigation and a joint lawsuit — as they still believe in the project and hold out hopes of getting a return on their investments. On June 4, Korean law firm Daegon reportedly filed a joint complaint against V Global, its CEO, and three executives on behalf of 130 investors and the Gyeonggi Nambu Police Agency. The Gyeonggi Nambu Police Agency is reportedly investigating V Global for an alleged crypto Ponzi scheme that reportedly defrauded around 69,000 people out of 4 …