Cryptocurrency Scams and Government

[Yatsan]

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.

The problem in here is that most people are not that quite knowledgeable enough to resist the intimidating offers of those scammers. Better think of it having such numerical percentage of return on a monthly basis is already impossible. People nowadays gets easily lured or fooled by such good looking offers that makes them invest into such scam schemes. Scam victims would be lessen in different platform not just in crypto if people are knowledgeable enough about that certain thing before they get to engagement. There is really an impact on the crypto's reliability because of such scam making it hot on the eyes of government on banning crypto when at the first place the platform is not the problem but the people. There is no tolerance happening in crypto being used for scam and other related criminalities, it just so happen that the nature of man being abusive makes it the reason why scams and frauds do happen not just in crypto but as well as into other platforms. People must be educated and be knowledgeable enough not get easily fooled by any good offerings for those at first glance is already suspicious.

[BIN-BIN]

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.

The problem in here is that most people are not that quite knowledgeable enough to resist the intimidating offers of those scammers. Better think of it having such numerical percentage of return on a monthly basis is already impossible. People nowadays gets easily lured or fooled by such good looking offers that makes them invest into such scam schemes. Scam victims would be lessen in different platform not just in crypto if people are knowledgeable enough about that certain thing before they get to engagement. There is really an impact on the crypto's reliability because of such scam making it hot on the eyes of government on banning crypto when at the first place the platform is not the problem but the people. There is no tolerance happening in crypto being used for scam and other related criminalities, it just so happen that the nature of man being abusive makes it the reason why scams and frauds do happen not just in crypto but as well as into other platforms. People must be educated and be knowledgeable enough not get easily fooled by any good offerings for those at first glance is already suspicious.

You are very correct, at first the government did not understand what digital/cryptocurrency is and at that the term t9 term it scam not knowing that it is the scammers individuals within the cyber space that are giving it bad name and image.

[pixie85]

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

I don't agree. Crypto scams don't destroy its image. It's like saying that fiat scams destroy fiat's image.

If someone doesn't feel like having cash is dangerous after reading that someone was robbed he shouldn't feel that it's dangerous to own bitcoin after reading that somebody was scammed online.

So many people in the US fall victim to IRS scammers or fake Microsoft support from India and they keep using fiat money. It's their way of thinking that should change not crypto.

[Kong Hey Pakboy]

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

I don't agree. Crypto scams don't destroy its image. It's like saying that fiat scams destroy fiat's image.

If someone doesn't feel like having cash is dangerous after reading that someone was robbed he shouldn't feel that it's dangerous to own bitcoin after reading that somebody was scammed online.

So many people in the US fall victim to IRS scammers or fake Microsoft support from India and they keep using fiat money. It's their way of thinking that should change not crypto.

You have a good point. But sometimes it is the reason why people are afraid to buy cryptocurrency when they heard these kind of news that they think they might fall victim to it as well, so they are just playing safe. News headlines are also the main reasons why Bitcoin's image is destroyed saying "bitcoin is a scam" so people back out of buying it when they read this kind of headlines.

[Bitcoinislife09]

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

Scam cryptocurrency exchanges could be everywhere. Scammers have big organizations that doing these scams and we can't really stop it. These scams have a big effect in the cryptocurrency community preventing the adaptation because most of the people are afraid to try crypto because they thought that online currencies or online investment are just scams. I think the government could educate people with cryptocurrency to avoid this problem. If people have knowledge in crypto they are a low chance for them to get scam. Newbies most likely get scam because they don't have the knowledge it bitcoin or cryptocurrency and then easily get carried by a big profit that a scam investment promise.

[Pamadar]

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

I don't agree. Crypto scams don't destroy its image. It's like saying that fiat scams destroy fiat's image.

If someone doesn't feel like having cash is dangerous after reading that someone was robbed he shouldn't feel that it's dangerous to own bitcoin after reading that somebody was scammed online.

So many people in the US fall victim to IRS scammers or fake Microsoft support from India and they keep using fiat money. It's their way of thinking that should change not crypto.

Great example! it's just depending from how people understand it in full.

Crypto is just another venue for scammers, we can't removed the fact that those people are present to any places where money are involved. In fact there are many scamming that has been done by means of fiat than crypto, so basically it's shouldn't be affecting that much.

[rdbase]

At this point in time Cryptocurrency and scam scenarios go hand and hand.
Nobody can deny that no matter if you are pro crypto or not.As I myself am a bitcoin maximalist and promote it any chance I get.

But it was built on the back of irreparable companies and sites such as silk road and mt.gox.
It's reputation has been tarnished and when putting bitcoin or any cryptocurrency on a pedestal these are in the back of everybodies minds when the next company or entity will come along to screw everyone over.
It had been done time and time again and just seem to get easier everytime these companies do it since they have learned from the previous iteration of the scam attempt and don't make the same mistake as they did.
Bitconnect and the clones. I think there was even a bitconnect v2 called bitconnect x or some thing like this but never bothered to follow up on it because so many have gotten burned by this ponzi scheme already and once bitten twice shy as they say.
But now these scam teams have gotten sophisticated enough to cloak these similar schemes in a blanket called DeFi.
And it seems many have gotten fooled by these very same schemers being blinded by greed.

If its reputation to be pulled out of the gutter once and for all then it would need to separate itself from these ponzi schemes and scam attempts and do away with trying to gather those who are only seeing it as a means of getting rich.
Which is the main purpose why all these new customers are only getting into it.
Because they heard it from a friend inwhich they only have dollar signs in their eyes.

[AnonBitCoiner]

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

It was easy to happen in a country like India.Because India is a very big market for the products and easy to scam by the people over thinking.Government can't control all the thing on their own,people should aware of fraud thing happening around them.You made a good thing by share this information in this forum.

[lienfaye]

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.

Crypto is greatly affected by these scams. Some people thought bitcoin itself or crypto in general is scam due to similar incidents scamming people and left with nothing. We can lessen this from happening and it will start to ourselves by conducting a research and not greedy to earn.

Thats why its important to have knowledge in any kind of investment we're getting in not only in crypto. Scams are everywhere and if you can be easily convince then you might end up one of their victim.

[MCobian]

Sometimes the government is unfair about the issue of crypto scams, because if the scams that occur in fiat, the government's reaction
will not be the same when the scams occur in crypto. Maybe because the government lacks knowledge about crypto, so when there is
a scams in crypto it immediately reacts quite hard. This kind of treatment makes crypto difficult to develop, even though if we look at most
of the scams that occur in the crypto world. Much of it is the fault of the users themselves, because it is easy to get attracted to reward
offers that don't make sense. It's not that investing in crypto is unsafe.

[Ridwan Fauzi]

This is why the government should regulate it, imagine if the government still ban crypto currency there will be many illegal exchange. They will hide the activity form the government. Crypto currency has been known by most people know and I guess they are interested to know more it and having it. If they learn in the wrong place there will be many people who will be victim.

Then, we will compare if the government accept crypto currency at least for investment purpose. The government will select the exchange which has a good credibility so as the citizen will only use an exchange which has been regulated by the government, the risk for the crypto user being scammed is really small. Even, the government can impose taxes on registered exchanges and this can help state revenue.

[michellee]

It was easy to happen in a country like India.Because India is a very big market for the products and easy to scam by the people over thinking.Government can't control all the thing on their own,people should aware of fraud thing happening around them.You made a good thing by share this information in this forum.

People should have awareness and search for more information before they involve deeper in the crypto market. If it's about the exchanges, it is not easy to find out if that exchange will scam them because the exchange will not do something suspicious to their members, but they can not hide themselves to scam people in the long term. Only people who give trust and not searching for the update can get scams, and if that happens, many people will regret to store their coins at the exchange.

[shoreno]

if i recall i think i have heard the name pluto before . that can be the same pluto exchange that turned unto scam but the first exchange that proposed to government are different ? if yes, govt.s should not treat all exchange the same . if exchange needs permit to the government to run , scamming should not be a problem because they have the records of those scammers  .

going back to the people that got scammed , they got fooled of the 30 to 40 percent return offer . thats not even sound legit  , if im the government i will not listen to these people .

[MCDev]

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.

Of course, it is very difficult for governments to influence the crypto market. However, when a project appears with a profit promise of 30 ~ 40% monthly profit, they should understand that this is a scam and should warn everyone about that project.

[Nhor1011]

Scam projects and scammers are always everywhere either in cryptocurrency or fiat currency. Not only newbies get fooled with this scam strategy also those people with a desire to get more money quickly. That's why having knowledge about crypto is better and can help everyone to avoid scam projects and investment.

[Xembin]

Everybody want to start using cryptocurrencies for investment not knowing the risk involved  in cryptocurrencies.
There are also scammer,scamming people in the areas of exchange pretending to be the real investors.
I think not everyone that is using cryptocurrency to invest are real investors some of them are scammer who heard that there is a great profit when you invest with your coins. Because they know that there are many people who want to invest their coins, so they have to form as if they are real investor too to scam those who can not differentiate the real investors.

[Blackrain13]

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.

Scammers are really strategic that's why they convince a lot of people to believe them. Well, money is very enticing to the eye of they people that want to get rich quickly and scammer use a decentralization of cryptocurrency  to make their evil plan. There is a saying "if no one cheats no cheater" .

[mezzaluna]

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

That will surely be a case of cyber-crime since people are scammed thru the Internet and it would really be dealt with a lot of people which the government would immediately recognize. There was a big supply of money involve and its not just a single person involve but a lot of people that is scammed by at least the same establishment or platform. This would really hurt the reputation of Cryptocurrencies.

[zeeros]

Lack of knowledge about cryptocurrency increases the number of people being a scammed using the idea of it. Since it is not regulated by the government they have all the guts to swindle money from people who have a little experience with crypto. People nowadays are easily blinded with the amount of money that they would expect to earn, thus risking their money with it. If only the government was willing to introduce crypto to its citizens and educate them about it, perhaps it may minimize individuals falling into fraudulent projects. And people will not see cryptos as a scam.

[pankowri]

-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 freer 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.

You are right. They target the new ones as well as adopt many fancy alleys. They are doing injustice anyway as there are no restraints and legislation here. We have to be very sensible or we can get caught up in them too.