Crypto Fraud Now Exposing Legacy Banks to Compliance Issues, Reports CipherTrace

The nature of cryptocurrency fraud is shifting away from exchange hacks, and toward Ponzi-style frauds, pyramid schemes and exit scams. A massive 533% rise in the value of such crimes means that as misappropriated funds are laundered, the traditional banking system is increasingly exposed to risk under upcoming Financial Action Task Force (FATF) rules.

Continue Reading …

Chinese Crypto Fitness App Reportedly Under Investigation for Fraud

A Chinese cryptocurrency fitness app has reportedly been placed under investigation for allegedly illegal fundraising practices and financial fraud.

Nikkei Asian Review reported the news on Dec. 18, citing documents ostensibly accessed by its affiliate publication, KrASIA. 

Investors in limbo

According to the report, the market regulator in Changsha,

Continue Reading …

The Making of the First US ICO Fraud Case

In common law systems, it is precedent that informs judicial approaches to new and previously unaddressed matters. The precedent that will likely shape the body of U.S. case law on fraudulent initial coin offerings (ICOs) is currently being forged in a federal court in the New York borough of Brooklyn, where a 39-year old entrepreneur,

Continue Reading …

Korean Shipwreck ICO Under Investigation for Possible Fraud


A South Korean treasure-hunting company called Shinil Group recently made headlines across the world once they announced an ICO after making the big discovery of a sunken Russiani battleship carrying gold worth $130 billion.

Team members from the company posted a YouTube video on July 16th showing how they were able to allegedly find wreckage of the Dmitrii Donsoki,

Continue Reading …