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Canadian Bitcoiner Scams the Scammer, Donates Proceeds to Bitcoin Venezuela

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Canadian Bitcoiner Scams the Scammer, Donates Proceeds to Bitcoin Venezuela

Canadian Bitcoiner Scams the Scammer, Donates Proceeds to Bitcoin Venezuela

Ben Perrin, a Calgary-based bitcoin enthusiast who runs an educational YouTube channel dedicated to enlightening the masses on all things cryptos, has succeeded in beating scammers in their own game and he’s donated the proceeds to Bitcoin Venezuela, a platform that helps Venezuelans buy groceries with cryptos, reports CBC on August 7, 2019. 

Perrin Beats the Bitcoin Thief

As bitcoin and other crypto-assets keeps growing in value and use case, fraudsters keep advancing their “crypto-thieving” skills and expanding their networks to both online and offline channels in order to defraud others.

However, in the latest development, Ben Perrin, a bitcoin enthusiast and marketing director for a bitcoin trading venue who also runs an educational YouTube channel that teaches the public about blockchain-based digital assets, has proven too hot to handle for the fraudsters.

Specifically, an unnamed scammer messaged Perrin via Instagram, offering to double every bitcoin he sends to their wallet every 24 hours.

The scammer said:

“It’s a bitcoin mining investment platform for investors interested in starting their own bitcoin mining business but are unable to do so because they do not want to go through the difficulties and stress associated with setting up a bitcoin mining venture.”

The fraudster further promised Perrin that the proceeds from the fake crypto mining scheme would be sent to his bitcoin wallet automatically on a daily basis.

Perrin Plays Along 

Instead of ignoring the scammer, Perrin decided to play along, pretending to be a crypto newbie interested in their get rich quick scheme.

He reportedly sent a fake bitcoin wallet statement to the fraudsters and lied to them he had previously been contacted by another investment team with a more juicy offer but he needed to be sure that the scheme was for real.

“I told them I would gladly invest $20,000 with them if they would simply send me $100 back, I could then return it to them, just to ensure that the project was legit,” declared Perrin.

Interestingly, the scammer fell into Perrin’s trap and sent him 50 USD instead of the requested $100.

Unfortunately for the bad actor, once Perrin got the funds, he quickly made it clear to the scammer that he was well aware of their plot and was just catching some fun.

He then donated the $50 to Bitcoin Venezuela

Commenting on the matter, Sergeant Matt Frederiksen of the Calgary police economic crime unit reiterated that though Perrin may have succeeded in scamming the scammer, the police does not encourage members of the public to engage in such an act, as it could be a dangerous thing to do.

Frederiksen also revealed that there have been 21 cases of fraud through crypto payments amounting to $1 million in the region in 2019 alone.

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Convicted Thief Of $30 Million Crypto Scheme Allegedly Stole From Hundreds of US Investors

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Convicted Thief Of $30 Million Crypto Scheme Allegedly Stole From Hundreds of US Investors
Convicted Thief Of $30 Million Crypto Scheme Allegedly Stole From Hundreds of US Investors

Boaz “Bo” Manor, a convicted hedge fund scammer, has been charged with raising over $30 million from investors in an allegedly fraudulent initial coin offering. Prosecutors say he ditched his real identity, donned red hair, grew a beard and masqueraded as “Shaun MacDonald,” a blockchain entrepreneur. Prior to surfacing in New York, the notorious scammer spent four years in a Canadian prison after his bogus $730-million hedge fund evaporated in 2005. 

The latest indictment names Manor’s accomplice, Edith Pardo, and two firms, CG Blockchain Inc. and BCT Inc. SEZC, as defendants. The cohorts allegedly sold crypto asset securities between August of 2017 and September of 2018. According to the complaint, they also falsely claimed to have 20 hedge funds piloting technology to register transactions on a blockchain.

The SEC clarified,

“In reality, the defendants had only sent a prototype to a dozen funds, and none of the funds used it or paid for it.”

Joseph G. Sansone, chief of the SEC’s market abuse division, remarked,

“Manor’s brazen scheme to conceal his identity and criminal history deprived investors of essential information and allowed the defendants to take over $30 million from investors’ pockets.”

Pardo has been arrested, but authorities say Manor remains on the run.

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Victims of Dunamiscoins Scam In Ugandan Petition Gov’t For What They Lost

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Victims of Dunamiscoins Scam In Ugandan Petition Gov’t For What They Lost
Victims of Dunamiscoins Scam In Ugandan Petition Gov’t For What They Lost

Over 5,000 victims of the alleged cryptocurrency pyramid scheme Dunamiscoins have petitioned the Ugandan Parliament asking to refund money lost in the scam.

Arthur Asiimwe, the leader of the petitioning group who presented the request to the Parliament’s speaker Rebecca Kadaga, claims that the government has licensed the alleged scam firm, according to an official announcement by the Parliament of Uganda on Jan. 16.

First spotted in early December 2019, Dunamiscoins is allegedly involved in defrauding over 10,000 people, causing them losses of around $2.7 million. The apparent scam company reportedly closed its offices just a month after opening, stealing money from its investors and employees after previously promising 40% returns on cash investments. Asiimwe emphasized that the Ugandan government must be held liable for the Dunamiscoins incident:

“Government licensed this company and gave it a go-ahead to work as a non-deposit taking financial institution; it carried out its duties as a microfinance company. They gave unrealistic bonuses.”

As two Dunamiscoins directors stood trial in early January, Asiimwe also pointed out that one of the key individuals behind the scam, Susan Awon, has still remained at large. The group leader expressed dissatisfaction with the status of the investigation, arguing that Ugandan authorities should take further steps to arrest the third director and refund the money.

Subsequently, Parliament’s speaker Kadaga promised to engage with the responsible state authorities in order to solve the issue. According to the official announcement by the Parliament, she said:

“Since you petitioned the President already, I will talk to him and invite the Minister of Finance, Uganda Micro Finance Regulatory Authority next week so we can forge a way forward.”

While Dunamiscoins victims apparently accuse their government of not taking necessary measures to prevent the scam, some media reports claim that Uganda’s President Yoweri Museveni endorsed the firm earlier. According to local news publication The Independent, the victims told Kadaga that their faith in the company was driven by the President’s endorsement alongside constant media adverts.

 Meanwhile, Museveni has definitely taken a positive stance towards both blockchain technology and cryptocurrencies. Back in 2018, the President met with executives at major global crypto exchange Binance to discuss the developments in the industry.

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Chainalysis Finds Terrorists Are Improving Their Crypto Financing Operations

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Chainalysis Finds Terrorists Are Improving Their Crypto Financing Operations
Chainalysis Finds Terrorists Are Improving Their Crypto Financing Operations

Earlier today, Jan. 17, the blockchain analysts identified Izz ad-Din al-Qassam Brigades (AQB), Hamas’s military arm and noted terrorist organization, as the first confirmed case of terrorists using cryptocurrency to aid their activity. AQB used a website to generate a new Bitcoin address for each donor to deposit funds. It included a how-to video on donating with maximal anonymity. 

Compared to similar earlier campaigns, AQB raised as much money and garnered more donors but in less than half the time. Cryptocurrency has been linked to crime before, including Ponzi schemes and hate crimes. In other recent research, Chainalysis tracked $2.8 billion in Bitcoin from criminal enterprises to exchanges. Over 50% — $1.4 billion in Bitcoin — moved through major exchanges Binance and Huobi.

Crypto-enabled crime has caught the attention of regulators and government officials who would like greater oversight of digital currencies. Last year, Treasury Secretary Steve Mnuchin, speaking at a gathering of the Financial Action Task Force (FATF), applauded global regulatory standards that would combat crypto crimes:

“The FATF will make sure that virtual asset service providers do not operate in the dark shadows […] This will enable the emerging FinTech sector to stay one-step ahead of rogue regimes and sympathizers of illicit causes…”

The FATF, whose 200 countries, including the U.S., promote measures to combat financial crime, now demand that exchanges know more about customers and transactions. More data will hopefully help identify money laundering and terrorism financing in exchange for institutions that largely lack the oversight needed to combat this growing problem. In a statement to Chainalysis, Binance CCO Samuel Lin said,

“Binance is committed to cleaning up financial crime in crypto and improving the health of our industry. We will continue to improve on our proprietary KYC and AML technology, as well as the third-party tools […] One of our core values at Binance is to protect our users…”

Binance, one of the largest crypto exchanges, exceeded $1 billion in profits last fall.

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