Bitcoin and other cryptocurrencies: cash machines for scammers

In 2019, cryptocurrency scams as Bitcoin represented an estimated damage to $ 4.3 billion according to Chainalysis. scams and fraud have exploded since 2017 and 2018.

Investing in cryptocurrencies, a good financial investment? The volatility of these assets can allow investors to reap beautiful capital gains. However, the scams, like the Ponzi pyramid, is not lacking.

The Chinese platform PlusToken was one of those scams, reports the Wall street journal. The revelations about this company broke out in June 2019. Six people were arrested after an investigation by the Chinese authorities and the site closed.

PlusToken, a $ 2 billion scam

PlusToken is not an isolated case, however, Chainalysis, a publisher specializing in tools for monitoring exchanges in cryptocurrencies and illicit transactions. According to the latter, crypto crime is growing.

Ponzi schemes and other frauds involving Bitcoin and other cryptocurrencies stole at least $ 4.3 billion from investors in 2019. In the previous two years, this amount had totaled $ 3 billion.

The techniques of fraud have changed significantly in recent years. If the Illegal ICOs and the hacks were in 2017 and 2018 the methods preferred by scammers, they have since been replaced by ponzi pyramids.

Ponzi schemes are developing

Chainalysis finds that six scams of this nature alone were responsible for around 90% of the funds stolen in 2019. The PlusToken platform, for example, would have released $ 2 billion.

There has been considerable growth in these imitations of investment opportunities, said company research director Kim Grauer.

These scams have grown in sophistication and size, affecting more victims due to the greater democratization of investments in cryptocurrencies.

Overall, scams, ransomware, terrorist financing and others illegal activities would have generated nearly $ 6 billion in cryptocurrencies Last year. And the tales of rapid wealth built using Bitcoin or other cryptocurrencies attract inexperienced investors who are more likely to fall victim to such scams.