Dupe(DUPE)

Three men duped New York-area banks into shelling out more than $10 million and tried to make off with the money by converting it to crypto, U.S. Attorney Damian Williams said Thursday in a statement.

A prominent crypto influencer has shared details of the latest scam targeting Ledger hardware wallet users as one victim was duped by fake support channels.

Three celebrity promoters of the failed FTX cryptocurrency exchange have opted to settle a case which alleged they helped dupe investors.

The fraudulent scheme duped over 3,000 investors into pouring their money into gold and USDT.

The DEA, the country's lead drug enforcement agency, is yet to find those responsible for the attack but has enlisted the help of the FBI.

Binance chief executive Changpeng Zhao has alerted users of the latest crypto scam which attempts to dupe people into sending to the wrong address.

The Supreme Court of India came down heavily on the central government, expressing displeasure over the lack of a clear law or regulations when it came to cryptocurrencies. The Apex court also noted a lack of an expert agency to probe criminal cases involving cryptocurrencies. Court Questions Government The Supreme Court stated that it was unfortunate that the central government had not brought in any type of legislation to regulate cryptocurrencies. The court also asked the central government to clarify whether it intended to set up a federal agency to investigate criminal cases that involve crypto. It also stressed the importance of setting up an agency capable of comprehending and thoroughly investigating cases involving crypto at a national level, adding that it is in the country’s interests to have such an agency in place. The bench, comprising of Justice Dipankar Datta and Justice Surya Kant, also questioned the quality of investigations carried out by the police, stating they may not possess the necessary expertise to handle such cases but are still being promoted to higher ranks and positions. The bench remarked, “You still don’t have any law, unfortunately. Do you have an agency at the national level to understand these cases and investigate them properly? We want you to identify a national specialized agency in the national interest. What kind of a quality investigation can you expect when you have a police constable who gets promoted to an assistant sub-inspector or a sub-inspector to handle such cases?” Innocent Investors Suffering The court urged the government to devise a legal regime to handle cases involving cryptocurrencies at the earliest. The bench expressed anguish that innocent investors were being duped while the government had no capable agency present at the national level to investigate the complex nature of crypto transactions. The bench remarked to the additional solicitor general, Vikramjit Bannerjee, stating, “There has to be some legislative mechanism. You can tell us that it is for you to decide whether or not you want it. But so long you don’t have a mechanism, how do you investigate people and keep them behind bars? It’s, after all, the country’s money that is being siphoned off. It’s like Hawala. Who has the responsibility to stop it? We thought you would yourself come forward and provide some solution.” The Case In Question The bench made the remarks while hearing a case involving a Delhi resident facing charges of crypto fraud in multiple cases, including Gujarat, Maharashtra, and Jharkhand. The accused individual, Ganesh Shivkumar Sagar, has filed several petitions seeking bail and asking that all cases against him be transferred to a central agency for further investigation. In another incident, the CBI apprehended a Delhi resident who posed as a Canadian government official, tricking his victims into transferring their digital assets to crypto wallets that were then misappropriated with the help of multiple accomplices. A subsequent search operation saw the agency recover over 1 crore in cash from the prime accused’s premises located in Delhi. According to the first information report (FIR) filed by the CBI, the main accused, along with an accomplice, pretended to be Canadian government officials. The accused then tricked an individual based in Quebec, coercing them into depositing over 7000 CAD, equivalent to around Rs. 4.30 lakh, into a crypto wallet. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The startup looking to create a global blockchain-based identification system using iris scans is getting duped by Chinese users.

The US SEC fined and issued a cease-and-desist order against crypto exchange Coinme and its subsidiary, Up Global Inc., for conducting an unregistered and misleading ICO of a crypto asset called UpToken. The United States Securities and Exchange Commission (SEC) announced it issued a cease-and-desist order against Bitcoin ATM operator Coinme and its business subsidiary Up Global Inc. for conducting an unlawful ICO (initial coin offering) of the crypto asset UpToken. Coinme, Up Global and the companies’ founder and CEO, Neil Bergquist, have been ordered to pay fines amounting to $3.9 million. Coinme and Up Global undertook an ICO in 2017 for the Ethereum-based asset UpToken to generate funds to expand Coinme ATM operations across the US. The SEC’s settlement report indicated the ICO generated over $3.65 million. Part of the funds was supposed to fund 30 new Coinme ATMs, and the remainder would be used for other corporate purposes. However, the SEC said investors were duped into believing Up Global would limit UpToken’s supply while Coinme would generate constant demand for the token to finance a bitcoin ATM rewards program which would, in turn, boost UpToken’s price. The regulator says, however, that UpToken was promoted and sold to investors as an investment contract and is thus considered a security according to US financial laws. All parties involved in the offering have accordingly been accused of selling an unregistered security. The SEC finally revealed that Coinme and its affiliates misled the public, claiming the ICO raised $18.5 million, in contrast to $3.65 million. Coinme, Up Global, and Bergquist Settle with the SEC The SEC levelled accusations against all three parties involved in the UpToken ICO, and all parties settled. Following the settlement, the SEC issued a cease-and-desist order against Coinme and Up Global, prohibiting them from indefinitely participating in any coin offering. In his personal capacity, Bergquist has been banned from participating in ICOs for three years. Coinme and Up Global have been ordered to pay civil money penalties of $250,000 and $3,520,000, respectively, while Bergquist will pay a fine of $150,000. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Crypto scammers are taking advantage of the latest technological developments in artificial intelligence (AI) to fool investors. California regulators said on Thursday that scammers used AI to generate fake CEOs to deceive potential investors. The California Department of Financial Protection and Innovation (DFPI) also announced its latest crackdown to protect residents from crypto scams, sending cease and desist letters to five firms claiming to make a profit from the current AI hype, according to reports by Decrypt. The DFPI targeted Maxpread Technologies, Harvest Keeper, Coinbot, QuantFund, and Visque Capital which it accused of making false promises relating to profitability and offering unqualified securities. The agency purports the companies made exaggerated claims about increasing their returns using AI for crypto trading and multi-level marketing schemes to attract unsuspecting victims. The DFPI said on Twitter: Scammers like to deceive investors by using phony CEOs, sham algorithms, & Ponzi schemes. Today, we've issued desist and refrain orders to five entities/individuals who violated CA securities laws. For more information: https://t.co/gj13z2OE4G#investing #hyip #Cryptonews pic.twitter.com/MXHPYwVIny — CA Department of Financial Protection & Innovation (@CaliforniaDFPI) April 19, 2023 Maxpread Technologies Allegedly Used AI to Generate a Fake CEO Both Maxpread Technologies and Harvest Keeper have been accused of misrepresenting their CEOs. Maxpread allegedly created a computer-generated avatar named “Gary” to represent their CEO, and Harvest Keeper allegedly used an actor to represent their CEO. The DFPI suggests Maxpread Technologies promoted its “profitability” using a promotional YouTube video featuring an avatar built on Synthesia.io, which was programmed to read a screenplay. Synthesia.io’s AI technology utilizes deep learning algorithms to create life-like animations and speech, enabling users to generate high-quality content. A YouTube video was published on April 8 featuring CEO “Michael Vanes.” The DFPI, however, indicates that such a person does not exist, and Maxpread’s previous chief marketing officer and corporate brand manager, Jan Gregory, is the company’s actual CEO. Forbes reports Elizabeth Smith, a representative from DFPI, explained in an email that the agency had traced the avatar to Synthesio.io, where it had been named “Gary.” Harvest Keeper Employed an Actor to Perform as CEO Harvest Keeper took a slightly different approach. The agency alleges that it employed a human actor to perform the role of the company’s CEO. The company also claimed to use AI to boost its trading profitability, but instead, it appears to rely on humans. Neither organization has responded to the accusations. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.