A report from Binance, the major cryptocurrency exchange, illustrates how fraud against crypto investors tries to gain credibility.
In the report published on June 30 The exchange said its risk investigation service, Binance Sentry, was watching reports of fraudulent investment plans that promised rapid or exponential returns on cryptocurrency investments.. The fraud cases affect not only cryptocurrencies, but also currencies, binary options and contracts for difference (CFD).
Binance released the report after a Bitcoin (BTC) fraud addressed to the residents of Winnipeg (Canada) in late June.
Fraud is usually a large, well-organized operation
Fraud organizations are often the subject of warnings, but often use different brands that appear to be unrelated. In fact, dozens of projects can often only be different branches of a large company.. In some cases, “one brand may be for cryptocurrencies, another for the foreign exchange market or CFDs.”
Some fraudulent companies are creating fake “consumer organizations” that are pushing victims for even more money after suspecting that the organization is a fraud and are trying to report it. Projects often create regulatory and government agencies such as business registers to gain investor confidence.
Binance Sentry notes that too The global nature of many scams makes legal action against them difficult. The report explains:
“”[Las] Victims of fraud are often found all over the world and live in jurisdictions that differ from the pseudo-services they are victims of. […] As expected, this not only leads to a higher level of difficulty in law enforcement investigations, but also complicates the process of making connections between victims. “