Another $1B Crypto Ponzi Scheme Unraveled

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18 May 2022
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Since its infancy, market turbulence and falling values have rocked the crypto industry. 

According to the authorities, a Ponzi scam has now been revealed.

For the last six months, being a crypto investor has been challenging. The fledgling market has been shocked by whipsawing demands, collapsing assets, and economic pressures.

With bitcoin's market cap plummeting by more than 80% since November, it's no surprise that currencies formerly hailed as safe and secure due to their peg to the dollar and ability to be tracked on exchanges have seen their value plummet.

Several positive aspects came through.

International and local authorities started to make efforts to comprehend better and monitor the sector's potential, which crypto advocates welcomed.

During Russia's unjustified invasion of Ukraine, there was also an increase in demand.

Cryptocurrencies were widely utilized to send and receive money in and out of Ukraine, demonstrating the potential of these digital currencies again.

Cryptocurrency is presently at a crossroads, notwithstanding the bright spots.

After losing more than half its value since November, it is still vulnerable to fraud, schemes, and abrupt drops.

A $1 billion Ponzi scheme is based on the cryptocurrency market, according to tax authorities.

Tax regulators in the United States have indicated that they are investigating 50 unique leads into cryptocurrency schemes, including things like nonfungible tokens and other decentralized components of the industry.

"NFTs are one of the new modern digital ways of trade-based money laundering," Niels Obbink of the Dutch Fiscal Information and Investigation Service said at a news conference involving the Internal Revenue Service's announcement.
"And since there is less control, less supervision, and a limited regulation that makes it vulnerable for fraud, compared with more well-known classic sectors, it must have our attention."


Scammers have taken advantage of crypto's ability to travel across borders unnoticed to target susceptible investors.

Also, it has led to many illegal acts, which authorities are battling and trying to regulate as crypto swindlers go for larger and more wealthy targets.

According to Jim Lee, the head of criminal investigations at the Internal Revenue Service.

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