Cryptocurrency Scams and Government

[pooya87]

the problem is that when governments are regulating exchanges they aren't setting any laws for the exchange itself, they are in fact regulating users instead. and that is a big flaw in the law that has to be fixed soon.

in my opinion all centralized exchanges have to apply for licenses that would only be issued to those that satisfy industry standards, for example:
1. has to provide security audits performed by security experts on fixed intervals like 6 months.
2. has to have strong servers that are responsive and can handle their number of users and more to account for new users and traffic surges.
3. has to provide some collateral so that it can return a certain percentage of user's funds in case they were hacked and lost their customer's funds
4. the rest of KYC crap but only after they satisfied the first 3.
of course governments don't care about any of these, they just want KYC so that they know who owns how much bitcoin and where they keep or spend it.

[kotajikikox]

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.

if there is a good thing surely there will be a bad,this is the nature of everything most specially in online business.

. 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.

This comes surely one thing,that People in your country are GREED and Selfish thinking and believing that 30-40% of profit is legit and truthful .

there is no such thing that gives 40% in a month,that is a sure 1% profit without doing nothing?how stupid people to believe this.

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

actually this is same strategy used by scammers all the time,promising good percent of profit while what you only do is entrust them your money.

[The cure]

Sometimes no matter how smart the person is, they still get to the point that they are still get fooled by the scammers. Because scammers are constantly thinking or devising new ways to deceive people so we think it is legitimate. Sadly,due to their evil deeds so the feedback of other people who are not yet familiar with crypto does not turn out well.

[MCDev]

It is a large amount of money and bad news about the crypto market, but it cannot be said that cryptocurrencies are scams.
Even in a financial industry that uses gold and other currencies, fraud is common, people cannot because of some scams ban gold or $.
I think governments should have policies to limit scams instead of banning cryptocurrencies.

[J1mb0]

assured of 30% - 40% return monthly.
Source : bitcoin.com

Profits up to 30 ~ 40% monthly, as long as you are a knowledgeable person you will realize this is definitely a scam project.
People who invest in such projects are inexperienced and greedy, the profits blurred their eyes and they eventually fall victim to scammers.

[xZork]

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.

Even the coolest projects ever, no single project can guarantee a 30 ~ 40% monthly return.
If anyone told me about a project where the development team guarantees 30 ~ 40% return on a monthly basis, I would definitely tell them it was a scam project.

[F_Societys]

I think investing in someone else's pocket is a mistake.
I have the stress of losing my property even when I invest with my own money.
How do they give up their money ??

[kryptqnick]

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.

While I agree that this is true, perhaps too much attention is given to crypto scams in comparison with fiat scams. The 'guaranteed revenue' scheme is classic, and not something crypto-specific. So it's unfair that it plunders Bitcoin's reputation but not that of USD (or other fiat). According to Statista, money that is lost due to scam is measured in billions of dollars per year even solely for the US, with 10.5 billion USD given to scammers in 2019. According to WSJ, crypto scams took 4 billion dollars in 2019. So all crypto scams (not just Bitcoin, but shitcoins too) around the world took less that 50% of money that fiat scams took in the US alone. At the same time, I don't see anyone running around saying that USD is shady because of this because it's not covered nearly enough by media.

[Wawa2013]

This is the importance of increasing education about investing in cryptocurrency, in order to give awareness to newbies not to be easily
attracted by the large rewards offer, Moreover, an offer of 30% -40% return monthly is very clear fraud. Because a legitimate investment
might not offer that much profit. No wonder the Indian government often bans cryptocurrency, it turns out that there are so many scams
in India that use cryptocurrency.

[ReiMomo]

With the said return you may start doubting because no one really gives free or something that you can earn free on the internet.
The amount offers 30-40% is quite considered as a double because it is almost 50% which is a promise returns. Another is, the name of the exchange is not well known, how we will trust them by reputation if they are newly launched with that sweet promises to the investors.

It's rally destroying in the name of the cryptocurrency, it gives totally shit but the fact only greedy and naive people who will always fall on this trap. Knowledgeable crypto enthusiasts rarely fall to this.

[Sanitough]

Government cannot totally ban bitcoin, they have no option but to regulate it.
We are in the early stage, as of the moment the market is not fully regulated yet so we can expect that it will be abused by scammers.

You know what, the biggest weapon of investors here are knowledge, without that they will be scammed, however, if there is regulation, these people will get some security and the government can also help in educating the people, so I hope as the market is getting bigger regulation will also be strengthen.

[Beparanf]

This is the importance of increasing education about investing in cryptocurrency, in order to give awareness to newbies not to be easily
attracted by the large rewards offer, Moreover, an offer of 30% -40% return monthly is very clear fraud. Because a legitimate investment
might not offer that much profit. No wonder the Indian government often bans cryptocurrency, it turns out that there are so many scams
in India that use cryptocurrency.

Not just in India but also in other countries, in my country the government tries to create a unit that will focus in determining online scam projects or investment schemes, I'm not sure if crypto will be included but maybe it will soon as many were easy to believe in scam projects and SEC sometimes have no says on it unless already did a scam activity, it should be check and validated from the start since some never learned and keep inve9in some easy money schemes without studying were some only use crypto as a medium to do their dirty plan.

[plvbob0070]

This is the importance of increasing education about investing in cryptocurrency, in order to give awareness to newbies not to be easily attracted by the large rewards offer, Moreover, an offer of 30% -40% return monthly is very clear fraud. Because a legitimate investment might not offer that much profit. No wonder the Indian government often bans cryptocurrency, it turns out that there are so many scams in India that use cryptocurrency.

It's really hard to believe such claims that it will give you a 30-40% return yet people still fall for this because they indeed lack awareness and education as well as their greed. People need to understand first that not all claims are real because it might just end up as a trap.

It's better for them to regulate crypto than banning it because it just shows that the recognition of crypto in India is increasing and they can make use of that as an opportunity while regulating it will help prevent scammers.

[royalfestus]

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.

I really support the new trend for startup, most of the project are from connection with friends, exchanges, investors and institutes. Binance and other investor angels are responsible for most of the startup that acquire fund recently. This will give confidence for investments, especially for the knowledge of the team and their track record.

[serjent05]

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.

Exchange would really come to this kind of proposal so that their business won't shutdown and personally the suggestion isn't bad since it suggest that the country to not be hostile to cryptocurrency and at the same time implement regulations and guidelines towards cryptocurrency.  This kind of suggestion benefits both the cryptocurrency industry and the government since the government can always get taxes to legit exchanges thus, more income to the government.

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.

Most people really never learn and always allow greed to consume their sanity.  The bolded part had been used a lot by Ponzi companies and I can't comprehend why people always fall for that scam.

[Gozie51]

I think governments should have policies to limit scams

How can this be possible in a decentralized system that is not regulated . The government may not be able to take care of that because these scammers are almost not present in the real world. This is a digital system, we need to be more careful.

[rexxarofmoknathal]

Although the sum is high ($270,000) this seems to have been a somewhat long-term strategy as Pluto exchange was established in 2017, so this whole scheme was out there plotting their scam exit for over 3 years!!! Source here.

To be fair, anywhere where an executive comes and speaks to you directly (like if they were serious they wouldn't have better things to do  ) convincing you to invest with up to 30% return on investment is already dodgy. I'm not saying straight out these people deserved it, as clearly they were too fixated on 'making money overnight' and you can't blame them, but the whole issue stems from them not being educated enough about crypto and the high incidence of scams.

And these unfortunate incidents, unfortunately, is what governments pick up on when allegedly 'thinks' about banning or implementing regulations. And, it is hard to prevent these types of scams from happening as these can be as illusive as the internet around the globe.

[LogitechMouse]

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.

That bold text is the red flag for me.

If you are a keen investor, you should know which is which. You should have some basis into when you should invest and when you should not. 30-40% monthly?? Banks are giving way lower than that and staking some altcoins give lower than that number. Also take note how they can get the money that they will give to the investors.

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.

When there is money involved, scams are always there. For some maybe the image of crypto is broken but if you really know how crypto works, you should know the true image of it. Crypto is just a tool used by these scammers.

[AniviaBtc]

Sometimes no matter how smart the person is, they still get to the point that they are still get fooled by the scammers. Because scammers are constantly thinking or devising new ways to deceive people so we think it is legitimate. Sadly,due to their evil deeds so the feedback of other people who are not yet familiar with crypto does not turn out well.

Being aware will do. If you're smart in terms of cryptocurrency and scammer's schemes, you will probably keep yourself from them. If you know how they move and how they work in a certain platform, you can prevent being their victim. We can't fully eliminate those scammers because they are unavoidable, especially that they are benefiting those money that they steal easily.

Here in this forum, there are a lot of topics regarding this scams in cryptocurrency and how government reacts on it. There are threads which can briefly explain to you, what to prevent, what to avoid, and what you must learn in cryptocurrency investments and accessing social media that can be a scammer's tool to fool people.

[Leviathan.007]

Outside or inside of crypto frauds, scam and crimes are in anywhere. It's the governments job to fight against scammer and frauds also people should be careful themselves. Just because some fake crypto project steal people from people we can't say all of them are scammers, the scammers will usually target the beginners and newbies who don't have the enough information and in order to fight against the scam government can start educating people so they won't fall into the traps.