Monday, March 8, 2021
  • Setup menu at Appearance » Menus and assign menu to Top Bar Navigation
Advertisement
  • AI Development
    • Artificial Intelligence
    • Machine Learning
    • Neural Networks
    • Learn to Code
  • Data
    • Blockchain
    • Big Data
    • Data Science
  • IT Security
    • Internet Privacy
    • Internet Security
  • Marketing
    • Digital Marketing
    • Marketing Technology
  • Technology Companies
  • Crypto News
No Result
View All Result
NikolaNews
  • AI Development
    • Artificial Intelligence
    • Machine Learning
    • Neural Networks
    • Learn to Code
  • Data
    • Blockchain
    • Big Data
    • Data Science
  • IT Security
    • Internet Privacy
    • Internet Security
  • Marketing
    • Digital Marketing
    • Marketing Technology
  • Technology Companies
  • Crypto News
No Result
View All Result
NikolaNews
No Result
View All Result
Home Internet Security

Cryptocurrency executives charged with running $11 million Ponzi scheme

October 18, 2019
in Internet Security
Cryptocurrency executives charged with running $11 million Ponzi scheme
586
SHARES
3.3k
VIEWS
Share on FacebookShare on Twitter

Organized crime in the UK turns to cryptocurrencies for money-laundering schemes
Albanian gangs are using fintech. Law enforcement says it needs a new approach to tackle the problem.

Executives of a US company are being accused of raising at least $11 million through a cryptocurrency-based Ponzi scheme. 

You might also like

Maza Russian cybercriminal forum suffers data breach

Okta and Auth0: A $6.5 billion bet that identity will warrant its own cloud

CISA issues emergency directive to agencies: Deal with Microsoft Exchange zero-days now

This week, the US Commodity Futures Trading Commission (CFTC) said that a civil enforcement action has been filed against David Gilbert Saffron and Circle Society, Corp., a Nevada-based firm. 

According to prosecutors, Saffron allegedly operated a Ponzi scheme with the assistance of other defendants at the company, soliciting and accepting a minimum of $11 million in both Bitcoin (BTC) and US dollars.  

These funds were taken from investors on the promise that their ‘investment’ would be traded and exchanged for binary options on foreign currencies as well as various cryptocurrencies. Participants were reportedly promised a guaranteed return of 300 percent. 

As is usually the case with a lure of huge returns for no effort, and guaranteed to boot, the promise was empty. 

See also: OneCoin ‘CryptoQueen’ sued over alleged $4bn cryptocurrency Ponzi scheme

The CFTC says that from December 2017 to the current date, a Ponzi pool was operated by Circle Society, backed by fraudulent claims concerning Saffron’s trading experience. 

However, rather than using cash offered by 14 investors to trade in binary options, the funds were used to pay off other participants, perpetuating the scheme further. 

Saffron and Circle Society are charged with fraudulent solicitation, misappropriation, and registration violations. An order has also been issued and extended by a US court to freeze their assets.

“Fraudulent schemes, like that alleged in this case, not only cheat innocent people out of their hard-earned money, but they threaten to undermine the responsible development of these new and innovative markets,” said CFTC Chairman Heath Tarbert.  

CNET: Now you can log onto Windows with a hardware security key

The CTFC hopes the action will result in the full compensation of victims, trading bans, and penalities — but cautions that unless the case is proved and money can be recovered, there may not be any restitution possible.    

A hearing is scheduled for October 29, 2019. 

Ponzi schemes, fraudulent Initial Coin Offerings (ICO), and exit scams are rife in the cryptocurrency space and are a headache for regulators to manage. 

In May, the operators of OneCoin, Konstantin Ignatov and self-confessed ‘crypto queen’ Ruja Ignatova, became central to a class-action lawsuit that claims the pair ran a multimillion-dollar cryptocurrency Ponzi scheme. 

TechRepublic: How to add public SSH keys for users in Cockpit

The complainants say that Ignatov and Ignatova’s ICO “purported cryptocurrency that never really existed, on a blockchain that never really existed, born from mining farms that never really existed, yet fraudulently sold to investors throughout the world through a densely-packed multi-level-marketing system.” 

OneCoin is estimated to have generated $4 billion in revenue. A whistleblower that has spoken out against the project has reportedly received death threats. The Bulgaria-based company is still trading. 

Previous and related coverage


Have a tip? Get in touch securely via WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0


Credit: Zdnet

Previous Post

Impact of Hybrid Cloud on the AI Driven Future Enterprise

Next Post

How a top 5 Bank uses machine learning to detect fictious identities

Related Posts

Maza Russian cybercriminal forum suffers data breach
Internet Security

Maza Russian cybercriminal forum suffers data breach

March 7, 2021
Okta and Auth0: A $6.5 billion bet that identity will warrant its own cloud
Internet Security

Okta and Auth0: A $6.5 billion bet that identity will warrant its own cloud

March 7, 2021
CISA issues emergency directive to agencies: Deal with Microsoft Exchange zero-days now
Internet Security

CISA issues emergency directive to agencies: Deal with Microsoft Exchange zero-days now

March 7, 2021
Linux distributions: All the talent and hard work that goes into building a good one
Internet Security

Linux distributions: All the talent and hard work that goes into building a good one

March 7, 2021
Check to see if you’re vulnerable to Microsoft Exchange Server zero-days using this tool
Internet Security

Check to see if you’re vulnerable to Microsoft Exchange Server zero-days using this tool

March 7, 2021
Next Post
How a top 5 Bank uses machine learning to detect fictious identities

How a top 5 Bank uses machine learning to detect fictious identities

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Plasticity in Deep Learning: Dynamic Adaptations for AI Self-Driving Cars

Plasticity in Deep Learning: Dynamic Adaptations for AI Self-Driving Cars

January 6, 2019
Microsoft, Google Use Artificial Intelligence to Fight Hackers

Microsoft, Google Use Artificial Intelligence to Fight Hackers

January 6, 2019

Categories

  • Artificial Intelligence
  • Big Data
  • Blockchain
  • Crypto News
  • Data Science
  • Digital Marketing
  • Internet Privacy
  • Internet Security
  • Learn to Code
  • Machine Learning
  • Marketing Technology
  • Neural Networks
  • Technology Companies

Don't miss it

How Machine Learning Is Changing Influencer Marketing
Machine Learning

How Machine Learning Is Changing Influencer Marketing

March 8, 2021
Video Highlights: Deep Learning for Probabilistic Time Series Forecasting
Machine Learning

Video Highlights: Deep Learning for Probabilistic Time Series Forecasting

March 7, 2021
Machine Learning Market Expansion Projected to Gain an Uptick During 2021-2027
Machine Learning

Machine Learning Market Expansion Projected to Gain an Uptick During 2021-2027

March 7, 2021
Maza Russian cybercriminal forum suffers data breach
Internet Security

Maza Russian cybercriminal forum suffers data breach

March 7, 2021
Clinical presentation of COVID-19 – a model derived by a machine learning algorithm
Machine Learning

Clinical presentation of COVID-19 – a model derived by a machine learning algorithm

March 7, 2021
Okta and Auth0: A $6.5 billion bet that identity will warrant its own cloud
Internet Security

Okta and Auth0: A $6.5 billion bet that identity will warrant its own cloud

March 7, 2021
NikolaNews

NikolaNews.com is an online News Portal which aims to share news about blockchain, AI, Big Data, and Data Privacy and more!

What’s New Here?

  • How Machine Learning Is Changing Influencer Marketing March 8, 2021
  • Video Highlights: Deep Learning for Probabilistic Time Series Forecasting March 7, 2021
  • Machine Learning Market Expansion Projected to Gain an Uptick During 2021-2027 March 7, 2021
  • Maza Russian cybercriminal forum suffers data breach March 7, 2021

Subscribe to get more!

© 2019 NikolaNews.com - Global Tech Updates

No Result
View All Result
  • AI Development
    • Artificial Intelligence
    • Machine Learning
    • Neural Networks
    • Learn to Code
  • Data
    • Blockchain
    • Big Data
    • Data Science
  • IT Security
    • Internet Privacy
    • Internet Security
  • Marketing
    • Digital Marketing
    • Marketing Technology
  • Technology Companies
  • Crypto News

© 2019 NikolaNews.com - Global Tech Updates