CryptoFraud

Another major verdict has landed in the fight against crypto fraud. Ramil Ventura Palafox (60), head of Praetorian Group International (PGI), pled guilty this week in Virginia to wire fraud and money laundering.

How the “Crypto Empire” Operated
Palafox, who holds dual U.S. and Philippine citizenship, served as chairman, CEO, and lead promoter of the company. In reality, it was a sophisticated Ponzi scheme that, according to prosecutors, lured more than 90,000 investors and caused at least $62 million in losses.
Praetorian promised daily returns of 0.5% to 3% through a supposed “bitcoin trading program.” In practice, the system never operated at scale — new deposits were recycled to pay earlier investors or spent on the executives’ personal luxury.
Between December 2019 and October 2021, investors poured over $201 million, including more than $30 million in fiat and over 8,100 bitcoins valued at around $171 million at the time.

Luxury Financed by Investor Funds
Instead of trading, Palafox spent millions on his lavish lifestyle:
More than $3 million on 20 luxury carsOver $6 million on four villas in Las Vegas and Los AngelesHundreds of thousands of dollars on penthouses and designer goods from Rolex, Cartier, Gucci
The PGI online portal displayed fake balances and fabricated profits to maintain the illusion of safety and legitimacy.

A “Textbook” Ponzi Scheme
Experts described Praetorian as a classic case of a multi-level marketing Ponzi structure. Dan Dadybayo of Unstoppable Wallet noted that the model closely mirrored notorious scams such as BitConnect, PlusToken, and OneCoin.
While the case does not carry the global weight of FTX or Mt. Gox, it highlights how promises of quick riches continue to attract victims. “These schemes survive because greed is universal and regulators lack the resources to chase them all,” Dadybayo remarked.

Sentencing Scheduled for 2026
Palafox will be sentenced on February 3, 2026, facing up to 40 years in prison. He has already agreed to pay $62.7 million in restitution, though legal experts say actual penalties are often lower than the statutory maximum.
Dadybayo stressed that the real issue is fraudulent conduct, not the technology itself. “Instead of endlessly expanding KYC and AML layers, the better approach is financial literacy, awareness of red flags, and stronger international coordination,” he concluded.

👉 This case once again underscores that while crypto can drive innovation, it also remains fertile ground for old-fashioned financial fraud — simply wrapped in digital packaging.

#CryptoFraud , #Cryptoscam , #bitcoin , #CryptoSecurity , #CryptoNews

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

📅 September 17 | Denver, United States
An unusual case is shaking Colorado's religious and financial community. A Denver pastor has been found responsible for a cryptocurrency fraud scheme, in which he allegedly used his position of trust to lure members of his congregation and other investors, promising them high returns in a supposed business linked to the crypto world. What seemed like a divine opportunity for prosperity ended up being uncovered as a web of deception.

📖 The fraud came to light after an investigation revealed how the pastor funneled money from his followers into nonexistent cryptocurrency investments, disguised as a "wealth multiplication" program supported—he claimed—by blockchain and digital mining projects.
The U.S. Securities and Exchange Commission (SEC) and local courts confirmed that the promises of guaranteed returns were completely false. Investors, many of them parishioners, contributed sums collectively exceeding several million dollars, blindly trusting their spiritual leader.
According to court documents, the pastor used much of the money for personal purposes, from property to luxury spending, while the alleged crypto projects never existed. The jury determined that it was a systematic fraud, based on emotional and financial manipulation.
The case resonates especially because it combines two worlds that, in theory, should be very distant: faith and crypto. For authorities, it is a reminder that trust can be used as a weapon, and that the cryptocurrency ecosystem remains fertile ground for scammers seeking to disguise deceptions under modern digital investment narratives.
The final ruling on the amount of reparations and possible additional sentences is expected in the coming weeks, but the mark has already been made: a fraud that left scars on both the faith and finances of hundreds of people.

Topic Opinion:
Crypto education is as important as faith. If this fraud teaches anything, it is that no leader, no matter how respected, should be blindly followed in financial decisions. The promise of guaranteed returns in crypto is always a red flag.
Crypto is not an enemy, but it can be used as a tool by those seeking to enrich themselves by manipulating emotions and hopes.
💬 Do you think faith was used as a weapon in this crypto fraud case?

Leave your comment...
#CryptoFraud #scam #blockchain #cryptocurrencies #CryptoNews $BTC

Fraudsters in Russia have already found a new target — the digital ruble. Although its full rollout is not scheduled until September 2026, the first scams exploiting the central bank digital currency (CBDC) are already spreading. According to the Central Bank of Russia (CBR), citizens lost 6.3 billion rubles (nearly $75 million) in just the second quarter of this year.

Social engineering over hacking
Experts stress that the problem is not technological breaches but social engineering tricks. Scammers impersonate bank officials or tax workers, convince people to transfer funds to “safe accounts,” or lure them into fake apps and links.
“The main weapon is psychological pressure — phone calls, fake interfaces, or fraudulent exchanges,” explains Vladimir Chernov of Freedom Finance Global.
Common scam scenarios include:
Offering to convert regular rubles into digital rubles at a “special rate” before CBDC launchClaiming that transferring savings into a digital wallet is mandatoryFake calls from the Federal Tax Service (FNS), demanding victims pay fabricated fines exclusively in digital rubles
Banks obliged to reimburse victims
By law, Russian banks are required to compensate victims of fraud — but the actual mechanism to do so does not yet exist. Analysts estimate that an effective system for reimbursing stolen digital rubles will not be in place until 2027–2028.
“Tracking transactions won’t be difficult, but recovering funds from recipients may take months or years and require court rulings,” warns Alexey Lukatsky of Positive Technologies.
Still, the digital ruble platform gives the state vast control — every transaction is permanently recorded, and the Central Bank of Russia can blacklist suspicious accounts.

Political backdrop and regulation
According to Anatoly Aksakov, head of the State Duma’s financial markets committee, the digital ruble is meant to enhance transparency and security. Critics, however, argue that new legislation designed to curb fraud also undermines cryptocurrency use and trading.
The pilot program for the digital ruble began in 2023 with a limited group of participants. Full implementation was initially scheduled for 2025 but has now been delayed to September 1, 2026, with a phased rollout.

#russia , #CBDC , #CryptoFraud , #CyberSecurity , #blockchain

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Nearly two years after the collapse of FTX and a 25-year prison sentence, the exchange’s founder Sam Bankman-Fried (SBF) will return to court. On November 4, his case will be reviewed by the U.S. Court of Appeals for the Second Circuit — a pivotal moment in one of the most infamous scandals in crypto history.

From conviction to appeal
In 2023, SBF was convicted on seven criminal charges, including fraud and conspiracy. The high-profile trial, closely watched by Wall Street and the broader financial world, exposed the depth of deception inside the once multi-billion-dollar exchange.
His lawyers filed an appeal in September 2024, arguing that he never had a fair chance at trial. They claim prosecutors pushed a “false narrative” that customer funds were gone forever. If the appellate court rules in his favor, SBF could face a retrial or a reduced sentence. Still, overturning the verdict will be difficult given the damning testimony from his closest insiders.

The fall of FTX and insider cooperation
The FTX collapse in 2022 remains one of the biggest shocks in crypto history. The exchange, once valued in the billions, imploded within days, leaving millions of customers stranded.
While SBF received the harshest sentence — 25 years, his former colleagues fared much better:
Caroline Ellison received only two yearsGary Wang and Nishad Singh avoided additional prison timeRyan Salame was sentenced to more than seven years
Their cooperation with prosecutors played a crucial role in securing Bankman-Fried’s conviction.

Life behind bars and pardon speculation
Since March 2025, SBF has been serving his time at the Terminal Island federal prison in California. Yet his name continues to make headlines.
Speculation has surfaced about a potential presidential pardon from Donald Trump, who previously pardoned Silk Road founder Ross Ulbricht. While SBF has not explicitly requested clemency, his comments during an interview with Tucker Carlson — where he hinted at openness to Republican views — fueled rumors of a political lifeline.

November 4: A decisive day
The upcoming hearing will be closely watched by both the crypto industry and Wall Street. Although experts say the odds of success are slim, the combination of an appeal and pardon speculation keeps SBF’s story alive.
This case is no longer just about one fallen crypto mogul. It is about accountability and trust in digital finance. And the question that lingers: Can Sam Bankman-Fried ever return to the stage, or will his name remain forever tied to failure?

#SamBankman-Fried , #FTX , #crypto , #CryptoFraud , #CryptoNews

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A new legal battle in the U.S. capital is once again shining a light on the risks tied to cryptocurrency ATMs. D.C. Attorney General Brian Schwalb has filed a lawsuit against Athena Bitcoin, accusing the operator of charging undisclosed fees and failing to protect users from fraud.

Fraud and Hidden Margins
According to Schwalb, as much as 93% of deposits made through Athena’s ATMs in the first five months of operation were directly linked to scams. Yet the company allegedly refused to reimburse victims and instead profited from hidden fees that were never clearly disclosed.
Investigations revealed Athena charged fees as high as 26% per transaction, without users ever being able to identify them during the process. In its terms of service, the company referred vaguely to a “transaction service margin,” but the word “fee” never appeared.
The Attorney General called this practice deceptive and unfair, stressing that Athena knowingly profited in an environment where victims – often seniors – were losing their life savings.

Tragic Stories of Victims
Between May and September 2024, Athena allegedly pocketed hundreds of thousands of dollars in hidden fees. The median age of victims was 71 years old, and the median loss per transaction was $8,000.
One of the most severe cases involved a D.C. resident who lost $98,000 in a single scam carried out via an Athena kiosk. The lawsuit states the company had “ineffective oversight,” creating an “unchecked channel for illegal international fraudulent transactions.”

Growing Problem With Crypto ATMs
The lawsuit comes amid growing scrutiny of crypto ATMs. In 2024 alone, the FBI received nearly 11,000 fraud complaints linked to these kiosks, with losses exceeding $246 million.
At least 13 U.S. states, including Arizona, Colorado, and Michigan, have already introduced transaction limits to reduce fraud exposure.
According to CoinATMRadar, there are currently 26,850 crypto ATMs in the U.S. The largest market share is held by Bitcoin Depot (27.6%), followed by CoinFlip (13.6%) and Athena (13%).

How to Avoid ATM Scams
Schwalb urged users to be cautious and not fall for false promises from scammers who often pose as tech support or investment advisors. Basic recommendations include:
🔹 Never send money to someone you don’t personally know

🔹 Don’t respond to unexpected calls or messages demanding funds

🔹 Verify information directly with official institutions

Hidden Fees in Traditional Banking Too
Athena is not alone in facing scrutiny over undisclosed fees. In recent years, traditional banks have also been fined heavily:
Discover Bank was ordered to refund clients $1.2 billion in excessive chargesWells Fargo paid $3.7 billion in fines for unlawful interest and fee practicesBank of America was fined more than $250 million in 2023 for so-called “junk fees”
Bottom Line
The lawsuit against Athena Bitcoin is another warning that crypto ATMs can be dangerous tools in the hands of fraudsters. Regulators are trying to protect the public, but victim stories show that personal vigilance remains the most important shield against financial predators.

👉 Question for readers: would you trust a crypto ATM enough to deposit your savings into it?

#CryptoATM , #CryptoFraud , #SEC , #CryptoRegulation , #CryptoNews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

📅 September 10 | Texas, USA
A new chapter in the crypto drama is rocking the United States: a Texas resident has filed a $12.5 million claim as a creditor in a cryptocurrency-related Ponzi scheme case. The complaint not only reflects the scale of the fraud, but also how these scams continue to lure thousands of investors with promises of impossible returns.

📖 What seemed like an irresistible investment opportunity: a project that guaranteed high returns on digital assets through alleged arbitrage operations and "secret" automated trading strategies. However, as the months passed, it became clear that there was no solid business model, and that funds from new entrants were being used to pay out existing ones—the classic hallmark of a Ponzi scheme.
The Texas resident now seeking $12.5 million in claims is part of a much larger group of victims who, according to court documents, may have lost tens of millions of dollars collectively. The case has been described by lawyers as an example of how the lack of clear oversight in certain crypto offerings allows for the recurrence of frauds reminiscent of Bernie Madoff's famous scheme, but in a blockchain version.
Most alarming is that the scammers were able to exploit the cryptocurrency boom and the enthusiasm of novice investors. They promised double-digit daily returns and displayed false profit reports on digital dashboards that looked professional but were completely fabricated.
Authorities are now investigating the full extent of the fraud, while creditors hope to recover some of their funds. However, in cases like this, experience dictates that most victims end up receiving only a fraction of what they lost.

Topic Opinion:
This case is a brutal reminder of the risks that still exist in the crypto ecosystem. Ponzi schemes are recycled under a new technological guise, but the logic is always the same: promises of quick profits that end in ruin.
Do you think the victims will be able to recover their money in this fraud?

Leave your comment...
#CryptoFraud #ponzi #Texas #bitcoin #CryptoNews $BTC

📅 September 9 | Washington, D.C., USA
The U.S. Department of Justice (DOJ) has filed a civil forfeiture lawsuit to recover nearly $5 million in Bitcoin, allegedly stolen through SIM-swap attacks. This sophisticated hacking technique, which has affected thousands of users worldwide, is once again in the spotlight, showing how criminals continue to exploit vulnerabilities in the weakest link: the human factor and mobile networks.

📖 The case presented by the DOJ reveals a meticulous operation: the attackers managed to take control of several victims' phone numbers through SIM swapping, a fraud in which criminals convince carriers to transfer a number to a new SIM card they control. Once in control, they accessed bank accounts, emails, and wallets, draining digital funds.
The $5 million in Bitcoin seized is allegedly linked to multiple attacks carried out in recent months. According to court documents, the stolen cryptocurrency was channeled through mixers and fragmented addresses to cover their tracks, a common tactic among cybercriminals. However, blockchain traceability allowed investigators to identify the wallets involved and connect the pieces of the puzzle.
A DOJ prosecutor emphasized: “SIM-swap attacks are a brutal reminder that even the most protected accounts can be vulnerable when control of the phone number is compromised.” The DOJ's move sets an important precedent: the use of civil forfeiture, which allows the government to seize funds linked to crimes even without direct criminal prosecution against specific individuals.
The news comes amid a growing wave of crypto fraud in the US. According to data from Chainalysis, SIM-swap attacks have resulted in losses of hundreds of millions of dollars over the past decade, affecting everyone from small investors to high-profile executives.

Topic Opinion:
Blockchain is transparent and traceable, and criminals are never completely safe, no matter how sophisticated their methods. However, it also highlights a vulnerability we all need to address: the security of our phone numbers. Relying on SMS to protect financial accounts in 2025 is a serious mistake. It's time for both users and businesses to migrate to more secure authenticators and physical keys.
💬 Do you use your phone number as a second layer of security or have you already migrated to more robust methods?

Leave your comment...
#bitcoin #CryptoFraud #DOJ #CyberSecurity #CryptoNews $BTC

The U.S. Department of Justice (DOJ) has delivered another blow to crypto-related fraud. This time, Shengsheng He, a resident of La Puente, California, was sentenced on Monday to 51 months in prison for laundering funds tied to a fraudulent scheme that siphoned nearly $37 million. He was also ordered to pay $26.9 million in restitution to victims.

How the Scheme Worked
According to federal prosecutors, He co-ran Axis Digital Limited, a Bahamas-based company that acted as a front for laundering money obtained through “pig butchering” scams – large-scale frauds that use dating apps, phone calls, or unsolicited messages to lure victims into fake investments.
The pattern was always the same:
Scammers built trust with victims through personal communicationThey pitched allegedly lucrative crypto investment opportunitiesVictims were shown fake profits, while their funds were funneled into Axis Digital’s accounts
The money was routed through Deltec Bank in the Bahamas, converted into the stablecoin Tether (USDT), and then transferred into wallets controlled by the fraudsters. To cover their tracks, they used a network of shell companies and offshore accounts.

Bigger Picture: DOJ Tightens Grip on Crypto Fraud
He’s case is part of the DOJ’s wider crackdown on crypto fraud and money laundering. In recent months, the DOJ has:
Seized crypto assets linked to Hamas worth $201,000Returned $7.1 million to victims of a $97 million oil and gas investment scamShut down domains tied to Russian exchanges accused of processing more than $800 million in illegal transactions
According to Chainalysis, pig butchering scams generated more than $9 billion in losses globally in 2024, making them one of the most damaging trends in online crime.

Accomplices Face Justice Too
Alongside He, eight co-conspirators also pleaded guilty, including Jose Somarriba and Jingliang Su, who played key roles in moving and converting the stolen funds. Su, a Chinese national, directly assisted in shifting the money between accounts.

👉 This case underscores how U.S. authorities are escalating their fight against crypto crime. While Shengsheng He heads to prison, the DOJ is sending a clear message: digital fraud will not go unpunished.

#CryptoFraud , #Cryptoscam , #bitcoin , #CryptoCrime , #CryptoNews

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Seized Notebooks Revealed Sophisticated Scams
Hong Kong police uncovered a sophisticated fraud scheme that used artificial intelligence to deceive victims. The investigation led to the seizure of over HK$34 million (approximately USD 3.37 million). Notebooks confiscated by law enforcement revealed the criminals' methods, including the use of deepfake technology to appear more convincing.
How the Fraudsters Lured Their Victims
The fraudsters pretended to be wealthy single women, crafting stories about interests such as learning Japanese, playing golf, or tasting luxury wines worth over HK$100,000 (USD 12,850) per bottle. These methods were documented in the notebooks seized during the operation.
The investigation resulted in the arrest of 31 individuals connected to a criminal syndicate. This group used artificial intelligence to create realistic images of attractive women, which were then used to lure victims into romantic and investment scams.
The Problem of Deepfake Scams
Byron Boston, a former police officer and CEO of Crypto Track, warned that the combination of deepfake technology and social engineering presents significant challenges for investigators and law enforcement. AI-generated images make criminals more convincing and enable them to execute more complex scams.
Boston highlighted an incident from November 2022, where a fake video impersonating FTX founder Sam Bankman-Fried was used in a phishing attack targeting FTX users. This incident demonstrates how deepfake technologies can be exploited to steal cryptocurrency assets from victims.
Scams Targeting Young People
Confiscated materials revealed that the fraudsters specifically targeted young people seeking quick earnings. Victims were often convinced they were communicating with ideal women from Taiwan, Singapore, and Malaysia.
Challenges in Combating These Crimes
Boston emphasized that effective collaboration and swift action are key to fighting these sophisticated scams. However, he noted that many local law enforcement agencies, particularly in the U.S., lack the necessary tools and expertise to track stolen cryptocurrency or cooperate with international exchanges.
Criminals leveraging technologies like deepfake and social engineering remain a significant challenge for security forces worldwide.

#Deepfake , #CryptoFraud , #CryptoScams , #cybercrime , #CryptoNewss

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“