Cryptocurrency Scams and Government

[AjithBtc]

Days back one of the exchange in the country came up with a proposal to regulate cryptocurrencies and avoid complete ban of cryptocurrencies usage within the country. When such good news pops out people go positive on using cryptocurrency. By the same time there is a news about an exchange scamming people with more than $60 million.

More than forty people who got scammed have complained about the exchange to the Delhi police. I've never come across the exchange named Pluto. This exchange has got almost seven executives who are the team. It is a new kind of trap, because with the people who doesn't have much knowledge about cryptocurrency they've mentioned about creating their own cryptocurrency and assured of 30% - 40% return monthly. This has made more users to invest and finally ended as a trap, and the office have got relocated to Dubai closing the office in India.

Similar such incidents will be mentioned as a reason by the government when applied for regulated usage of cryptocurrencies. More Scams in the name of cryptocurrency is truly destroying the true quality of cryptocurrency and it's features. Hope the change happens soon creating positivity among common people about cryptocurrency.

Source : bitcoin.com

[GreatArkansas]

That's a huge figure. This is one of the reasons why people are bashing Bitcoin or cryptocurrency, these frauds or scams are destroying cryptocurrency.
A lot of scammers are entering cryptocurrency because they know how decentralized cryptocurrency is and they can easily get out or disappear like a bubble after they are done scamming people and start again on something new.

[Bitcoin577]

That's a huge figure. This is one of the reasons why people are bashing Bitcoin or cryptocurrency, these frauds or scams are destroying cryptocurrency.
A lot of scammers are entering cryptocurrency because they know how decentralized cryptocurrency is and they can easily get out or disappear like a bubble after they are done scamming people and start again on something new.

Mostly these things happening in third world countries because system is very weak and justice system is also completely fail to give protection to common peoples so common peoples in greediness invest some good amount without any solid proof and search which ends in scam or lost so after this they start crying then suddenly few departments start their own investigation which mostly end in nothing as scammers out of way and losers crying which never heard by any one.

[Latviand]

That's a huge figure. This is one of the reasons why people are bashing Bitcoin or cryptocurrency, these frauds or scams are destroying cryptocurrency.
A lot of scammers are entering cryptocurrency because they know how decentralized cryptocurrency is and they can easily get out or disappear like a bubble after they are done scamming people and start again on something new.

We can't really stop them because they are increasing even if the authorities are already knowledgeable with those happenings.

Scammers are using any kinds of platforms just to fool people and force them to send money to the scammer's account without even spending money. That's how easy is the money for them, they just need to spend time, think of the things where newbies can be fooled easily. Especially that cryptocurrency is so complex and technical that it requires a lot of knowledge in order for you to know how it works. Also being aware with scammers and how they move will make you become more safe to them.

[20kevin20]

Similar such incidents will be mentioned as a reason by the government when applied for regulated usage of cryptocurrencies. More Scams in the name of cryptocurrency is truly destroying the true quality of cryptocurrency and it's features. Hope the change happens soon creating positivity among common people about cryptocurrency.

Scams, thefts and crimes are out there in any domain you can think of. They don't particularly destroy the image of cryptocurrencies as it has nothing to do with their existence. The more crypto users there are, the more scams there'll be. That is a fact.

You could go right now over the Bounties area of altcoins and more than 80% of them are scams. Think of how many scam "Claim Your $1,000,000.00 Check Now!" e-mails the world receives on a daily basis and how many scammy catfishes there are on dating apps. As long as there are people to fall into these traps, there'll be scammers as well. Yet, cryptocurrencies suffer the most through regulation and are artificially turned against freedom through regulation that doesn't make sense.

[davis196]

It is a new kind of trap, because with the people who doesn't have much knowledge about cryptocurrency they've mentioned about creating their own cryptocurrency and assured of 30% - 40% return monthly.

There's nothing new,when it comes to scam projects offering insane profits and returns.It doesn't matter if it's a cryptocurrency or a fiat scam,they always do the same thing-promising crazy profits and stealing the money of the naive and desperate people.
Having more strict regulations can't solve this problem.Scams like this one will always exist and scammers will always find a way to get new victims.
The only solution is to educate the people about the potential risks of "investing" their money in a shady platform,which promises 40% monthly return.

[int03h]

People often receive such invitations to invest, and despite similar scams that have happened they continue to be trapped. It is their fault.
In our country, they have banned unlicensed fundraising. The above jobs have somewhat reduced fraud. Countries should have rules about capital mobilization.

[taufik123]

-snip-
A lot of scammers are entering cryptocurrency because they know how decentralized cryptocurrency is and they can easily get out or disappear like a bubble after they are done scamming people and start again on something new.

and their target is beginners who are new to and into cryptocurrency with a large enough capital. Cryptocurrency scammers feel safer because there are no government rules regarding fraud investigations that exist in cryptocurrency and the regulations provided are also unclear, so scammers will be more free to make many fraudulent projects to get a lot of profit.
Even today, they use many methods, especially on the DEFI platform, which is a new platform and is currently hype in cryptocurrency.

[CryptopreneurBrainboss]

This just has to be ignorance or greed from the Delhi citizens. The web is open for research and by now they should know anything promising you a certain return in the cryptocurrencies industry that's not dividends paid by project you buy shares of is a ponzi coin or scams project that shouldn't be patronized. If you're interested in investing, access the global exchanges out there and buy coins you have done your research on and stored them in your perianal wallet.

The exchanges know gullible Investors with the desire to earn without risking in the industry are raising, As a result of the extreme volatility of the market therefore many are likely to fall victims to their tricks. Don't forget the exchange has expenses too to cover so when they promise mouth watering offers you should be more skeptical and preferable avoid using such platforms.

Just because the scams are increasing doesn't mean the government regulating the industry in your country is the best option. There's more disadvantage to centralizing the industry than advantage so don't be too excited.

[maxreish]

And also the main reason why Governments keep on creating regulations and law about cryptocurrency. Those exchanges that scammed huge amount of crypto coins making the reputation to be not that good right now.

Always remember that promising to give back huge returns like 30-50% are more likely scams. There's no easy money return, they've been hooked with those promises ended up scammed by lame exchanges. This seems to be a lesson learned to the Delhi traders/crypto enthusiasts.

[Upgrade00]

Cryptocurrency scammers feel safer because there are no government rules regarding fraud investigations that exist in cryptocurrency and the regulations provided are also unclear, so scammers will be more free to make many fraudulent projects to get a lot of profit.

There are no cryptocurrency scammers, just scammers looking for any means to swindle unsuspecting users, and to achieve this they would exploit any means available.
I also do not think scammers feel safer operating in cryptocurrencies, if discovered and investigated they can actually be prosecuted for it; the most recent of such case I can recall is - SEC Charges Film Producer, Rapper, and Others for Participation in Two Fraudulent ICOs.
The DeFi sector is very popular now and attracting lots of newbie investors looking for a means of making quick profit, this is sure to also attract scammers.

Mainstream media links scams to vulnerabilities in cryptocurrencies which are exploited by scammers, but it's not peculiar to the industry. Far more scams are run using fiat currencies than with cryptocurrency, but it's less associated with illegal activities.

[kayvie]

they've mentioned about creating their own cryptocurrency and assured of 30% - 40% return monthly.

I don't know, but why even today, people tend to invest in this kind of scam. People are easily deceived and being scammed because they continue to do such thing as investing and having ROI monthly. There is no such thing as investing and having a guaranteed return without doing anything. Not only in crypto space, even in real world, people should realize it that earning money is not easy as that.

[AmoreJaz]

they've mentioned about creating their own cryptocurrency and assured of 30% - 40% return monthly.

I don't know, but why even today, people tend to invest in this kind of scam. People are easily deceived and being scammed because they continue to do such thing as investing and having ROI monthly. There is no such thing as investing and having a guaranteed return without doing anything. Not only in crypto space, even in real world, people should realize it that earning money is not easy as that.

most of these individuals who got rekt from this obvious scheme are those that are hoping they can earn good money at a short period of time. sometimes i called them desperate people because they have no patience in earning money from legit sources. i am thinking that some of them know that it is a scam but still they are trying to get on it, for the hope that their fate will change.
 but unfortunately, it's not. because these scammers only care for themselves and how much they will pocket before having their disappearing act.

[ipanks]

Yeah, the scammers will always search for the new way to trick people, especially for the new people. I wonder how they can get every new way because I think they are very creative in finding a new way. It looks like they always know how to attract and invite those people to invest in their scam projects. We still need to improve our knowledge to prevent their trick because that is the only way that we can do to avoid them.

[Zionatin]

If you stupid enough to believe people are going to give money away then you deserve to be scammed I am sorry. This doesn't make crypto look bad at all. All the crypto scams have fiat versions too.
Investments and some banks also scam people and then go under. This happens in the fiat world too. It's almost like some people think scams never existed until bitcoin.

they've mentioned about creating their own cryptocurrency and assured of 30% - 40% return monthly.

I don't know, but why even today, people tend to invest in this kind of scam. People are easily deceived and being scammed because they continue to do such thing as investing and having ROI monthly. There is no such thing as investing and having a guaranteed return without doing anything. Not only in crypto space, even in real world, people should realize it that earning money is not easy as that.

Scammers have the same concept, they keep on promising a sure return every month at a specific percentage, people should know this trick and even if they said they are government approved, you still have to do your own research. There’s a lot of crypto scam, don’t get fooled easily and have your right knowledge always.

Well firstly to being with you should never ever believe any place that says they government-approved being there is no such thing. Crypto space is the real world what are you talking about?

[Wexnident]

If the Government aren't idiots, the first thing they should do when adopting regulations against crypto would be to actually introduce to the general populace what crypto really is. If they just straight up placed regulations that are clearly against crypto, people who actually know that it isn't a scam would clearly go into a riot, and would actually show how incompetent the government is when it comes to properly looking up information (which really, a simple google lookup should be more than enough to get the gist of it).

Scams, thefts and crimes are out there in any domain you can think of. They don't particularly destroy the image of cryptocurrencies as it has nothing to do with their existence. The more crypto users there are, the more scams there'll be. That is a fact.

But it does ruin the image of crypto for the general populace, especially the ignorant ones of how crypto works. Most people when they think of Bitcoin, but haven't really learned it would actually first think of it as a way to earn money, that when you're in a business related to Bitcoin, you're actually rich. Most don't even know that at its core, it's a form of a medium instead of an investment.

[Poker Player]

If you stupid enough to believe people are going to give money away then you deserve to be scammed I am sorry. This doesn't make crypto look bad at all. All the crypto scams have fiat versions too.
Investments and some banks also scam people and then go under. This happens in the fiat world too. It's almost like some people think scams never existed until bitcoin.

I agree. I've just said something similar in another post.

As for victims of scams, some of them may just be naive people so I fell sorry for them. In many other cases they are greedy people who believe they are very smart so I don't feel sorry at all and I think, like you, that they got what they deserved.

[Lorence.xD]

Yeah, the scammers will always search for the new way to trick people, especially for the new people. I wonder how they can get every new way because I think they are very creative in finding a new way. It looks like they always know how to attract and invite those people to invest in their scam projects. We still need to improve our knowledge to prevent their trick because that is the only way that we can do to avoid them.

Scamming people is an addictive solution to poverty, remember that some people do this kind of thing to get by. The true problem arises when the heads of the organization becomes greedy and we all know what happens when this happens, they throw away moral just to satisfy their greed. It is sad that poverty drives people to do this thing, if government has an effective welfare to their citizen, I think scams will reduce.

Regarding new kinds of scams, we can prevent this from getting victims by spreading information about this type of scam and how they operate.

[ipanks]

Yeah, the scammers will always search for the new way to trick people, especially for the new people. I wonder how they can get every new way because I think they are very creative in finding a new way. It looks like they always know how to attract and invite those people to invest in their scam projects. We still need to improve our knowledge to prevent their trick because that is the only way that we can do to avoid them.

Scamming people is an addictive solution to poverty, remember that some people do this kind of thing to get by. The true problem arises when the heads of the organization becomes greedy and we all know what happens when this happens, they throw away moral just to satisfy their greed. It is sad that poverty drives people to do this thing, if government has an effective welfare to their citizen, I think scams will reduce.

Regarding new kinds of scams, we can prevent this from getting victims by spreading information about this type of scam and how they operate.

Hehehe, I think that is a kind of habit from people who are scamming other people. I see some people who will try to trick other people in real life, and they don't stop if they get caught. But what I don't understand from the government who is scamming people is why they of this. I just think how if they get scam by other people, what they will feel. Often, humans become greed if that comes to wealth and think that will relate to wealth.

[YOSHIE]

More than forty people who got scammed have complained about the exchange to the Delhi police. I've never come across the exchange named Pluto.

It seems that in India it never runs out, the problems regarding crypto, from the government to fraud by exchange companies, crypto users in India today are very worried that problem after problem persists.

It was very bad what the exchange company (Pluto) did, by deceiving dozens of people, in a time like this in India, this is indeed a bad deed done by the Pluto exchange.

I also see, maybe they have known this Bitcointalk forum long ago from 2017, as in the topic below.

Topic: Dubai-Based Firm Launches India’s First Bitcoin Trading App

Topic: Pluto Exchange launches India’s first bitcoin trading app

They shouldn't be committing that scam to crypto users in India right now.
Pluto exchanges are not native to India, they are from Dubai, I hope for the future every Indian community, should review the origins of the exchange company founder before joining, to prevent fraud.