Bitcoin News — Scams

Turkish Police Detain 11 Suspects in Bitcoin Theft Case

Posted by Lubomir Tassev on

Turkish Police Detain 11 Suspects in Bitcoin Theft CaseThe cybercrime unit of the Turkish police has detained 11 people suspected of hacking into emails, user accounts and cryptocurrency wallets. The operation was launched after law enforcement received a number of complaints from victims who lost digital cash.   Also read: Church Mining Cryptocurrency to Pay Higher Electricity Rates               Hackers Steal $80,000 Worth of […]

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The Daily: Coinbase Launches Investment Fund, Cointext Enters New Markets

Posted by Lubomir Tassev on

The Daily: Coinbase Launches Investment Fund, Cointext Enters New MarketsIn this edition of The Daily, we look at Coinbase’s decision to create a new investment vehicle for institutions in partnership with asset manager Wilshire Phoenix. We also cover the expansion of bitcoin cash SMS wallet service Cointext into four new markets. Also, New Zealand’s financial regulator has issued a warning against a platform offering […]

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Binance Freezes Funds on Multiple Accounts with Dubious Crypto Exchange

Posted by Landon Manning on

Binance Freezes Funds on Multiple Accounts with Dubious Crypto Exchange

Binance has frozen multiple accounts associated with the cryptocurrency exchange Wex, citing money laundering concerns.

The CEO of Binance went on Twitter recently to announce the freezing of multiple accounts owned by Wex, claiming that Binance will cooperate with law enforcement in any way possible should a criminal investigation result from alleged money laundering.

Wex, a Russian-based cryptocurrency exchange, has had a troubled history, to put it mildly. Going formally under the name of btc-e, it drew community unrest when its alleged operator, Alexander Vinnick, was arrested. It subsequently rebranded to the current name and set up a New Zealand-based server.

People using this exchange have reported being unable to actually use or withdraw their money, with a dedicated website of aggrieved users meeting to share information about possible allegations of theft.

Per the CEO of Binance’s Tweet, it seems as if large amounts of this missing money is being moved through Binance, presumably for the purposes of fraud. To this end, Binance has agreed with the general consensus that criminal activities could be involved.  

The CEO went on to state that circumstances such as this are often an unpleasant point in favor of increased centralization for cryptocurrency, as someone does have to be on the hook to help stop fraudulent activity.

This article originally appeared on Bitcoin Magazine.

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North Korea Allegedly Backed Two Cryptocurrency Scams This Year

Posted by Helen Partz on

North Korea has allegedly backed at least two scam coins this year, according to a recent report by a U.S. security firm.

According to a new report from U.S.-based security firm Recorded Future published on Oct. 25, the North Korean government has sponsored at least two scam coins.

In the report entitled “Shifting Patterns in Internet Use Reveal Adaptable and Innovative North Korean Ruling Elite,” Recorded Future’s research team Insikt Group mentions two alleged altcoin scams tied to North Korea.

The first scam coin allegedly backed by North Korea is called Interstellar coin, and was found by Insikt Group in June 2018. The coin has reportedly been rebranded a number of times, going by various names such as HOLD, HUZU, or Stellar. The latter should not be confused with the XLM token.

According to the report, the HOLD coin has been listed and delisted on a series of crypto exchanges, eventually defrauding investors in a scam staking scheme.

The second scam coin dubbed Marine Chain coin was detected in a “couple of Bitcoin forums” in August 2018. The coin, which supposedly enabled the tokenization of maritime vessels for multiple users and owners, was claimed to be fraudulent by the state of Ontario, Canada.

A slew of users complained about the loss of tens of thousands of dollars and scams on the website, which was hosted at four different IP addresses since its registration. Some users pointed out that the website marine-chain.io was a near mirror image of another site shipowner.io:

April 2018 screenshots of marine-chain[.]io and shipowner[.]io. Source: Recorded Ruture

April 2018 screenshots of marine-chain[.]io and shipowner[.]io. Source: Recorded Future

In previous research, Insikt Group discovered that North Korean leaders were mining both Bitcoin (BTC) and privacy-oriented altcoin Monero (XMR), while at a limited or “relatively small scale.”

Earlier this year, Recorded Future released a report investigating the potential ties of major crypto exchange hacks with North Korea-affiliated cybercrime group Lazarus. Insikt noted the potential involvement of the group in the hack of South Korea’s Bithumb crypto exchange, following previous accusations of hacking Youbit exchange.

Last week, Cointelegraph reported that Lazarus stole $571 million in cryptocurrencies since early 2017. According to cybercrime firm Group-IB, the total amount stolen from online crypto exchanges during the studied time between 2017 and 2018 reached $882 million.

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Fake News Site Used New Zealand Prime Minister to Pump Bitcoin Startup

Posted by Wolfie Zhao on

A fake news site used images of New Zealand's prime minister in sponsored posts on Facebook to promote a bitcoin firm.

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