Cryptoscam

A legal battle has erupted in New York, blending online romance, cryptocurrencies, and a staggering financial loss. Michael Zidell filed a lawsuit against Citibank on June 24, claiming he lost $20 million in a sophisticated romance-investment scam. According to him, the bank should have recognized the red flags and acted accordingly.

🎭 Love as a Trap: The Beginning of the Scam
The story began in January 2023 when Zidell was contacted on Facebook by a woman introducing herself as Carolyn Parker, allegedly a business owner from California. Their communication quickly moved to WeChat, where a romantic relationship developed through video calls and messages. In February, she convinced Zidell to invest in NFTs through a website called OpenrarityPro.com, which she presented as a guaranteed way to make millions.
She showed him what appeared to be account statements as "proof" of her success, and Zidell began transferring funds. In total, he made 43 transfers, with 12 sent to Citibank accounts under the name Guju Inc., amounting to almost $4 million.

🚨 Warning Signs the Bank Allegedly Ignored
Zidell claims that the transactions to Guju Inc. far exceeded the firm’s stated income, as declared during the account opening process, and that Citibank had a duty to investigate the activity. The transfers reportedly showed classic signs of fraud – including large, round-dollar amounts and mismatches with the company’s stated business activity.
The lawsuit accuses Citibank of violating Know Your Customer (KYC) and Anti-Money Laundering (AML) laws by failing to investigate the suspicious activity despite clear warning signs.

🐖 "Pig Butchering" – A Rising Scam Trend
The type of scam that Zidell fell victim to is known as “pig butchering” – a scheme where fraudsters build long-term fake relationships, gain the victim's trust, and then manipulate them into investing massive sums, often in crypto assets.
According to the FBI’s 2024 Internet Crime Report, such scams resulted in the largest crypto-related financial losses, totaling $5.8 billion last year alone.
Elderly Americans were especially targeted: those aged 60 and older lost a collective $2.8 billion, mostly due to fake investment offers disguised as romantic relationships.

#Cryptoscam , #CryptoFraud , #CryptoCrime , #CyberSecurity , #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.“

Australia’s financial watchdog AUSTRAC has uncovered a shocking truth: among the 90 most active users of cryptocurrency ATMs, the majority are not tech-savvy investors—but scam victims and “money mules.”
Instead of acting as a gateway to the digital financial world, these machines are now being exploited for emotional manipulation and laundering dirty money. A nationwide investigation in cooperation with the police revealed that a huge portion of high-value transactions at crypto ATMs is linked to romance and investment scams.

Fraudsters Exploit Trust – Victims Lose Hundreds of Thousands of Dollars
One of the most devastating cases involves a 70-year-old woman who lost over $430,000 after being deceived by a combination of fake love and false promises of wealth. Another elderly woman sent $200,000 to a supposed “trading firm” that vanished without a trace. In both cases, the funds were unrecoverable—and so was the trust in digital finance.

AUSTRAC CEO: Most Transactions Involve Victims, Not Criminals
AUSTRAC’s head Brendan Thomas didn’t mince words: “We suspected that the high transaction volumes at these ATMs were suspicious. But the outcome exceeded our expectations—almost all of them were carried out by scam victims, not perpetrators.”
What was once seen as a cutting-edge tool for entering the digital economy has now become a trap, leaving people financially ruined and emotionally drained.

Australia Imposes Tighter Rules – The U.S. Follows Suit
To prevent further damage, Australia has introduced new regulations, including:
🔹 A $5,000 limit per ATM transaction

🔹 Mandatory identity verification

🔹 On-screen scam warnings

🔹 Stricter supervision of ATM operators and owners
Brendan Thomas urged the public to be extremely cautious: “If someone tells you to deposit cash into a crypto ATM and send it to a wallet you don’t control, chances are you’ll lose it all.”

Scam Losses in the U.S. Skyrocket – Nearly Tenfold Increase
A similar situation is unfolding across the U.S. According to the latest data, crypto ATM scams surged nearly tenfold between 2020 and 2023. In 2024 alone, FBI complaints rose by 99%, with related scam losses reaching $247 million.
People over 60 are particularly vulnerable, being three times more likely to fall victim than younger users. Scammers often guide victims step-by-step—where to go, how to scan a code, how to insert the cash. For many, it’s their first and last encounter with cryptocurrency.

Crypto Market Grows, But Security Lags Behind
Ironically, while scams are increasing, the crypto market continues to thrive. In the last 24 hours, the total crypto market cap has grown by over 2%, reaching $3.31 trillion.
🔹 Bitcoin is trading above $108,000

🔹 Ethereum hovers around $2,439
Digital assets are booming, but they’re also attracting more criminals. While technology moves forward, many people are left behind—often with empty wallets and shattered trust.

❗ What do you think? Should crypto ATMs face even stricter regulation, or is this just the result of irresponsible use?

#Cryptoscam , #BTC , #CryptoSecurity , #CryptoFraud , #bitcoin

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.“

U.S.-based crypto exchange Coinbase has announced its major role in uncovering and tracing one of the largest crypto frauds in U.S. history. In collaboration with the U.S. Secret Service and FBI, Coinbase helped track millions in stolen digital assets and identify hundreds of scam victims tied to a fraud scheme known as “pig butchering.”

🔹 A Historic Seizure Worth Hundreds of Millions

Last week, Secret Service Special Agent Shawn Bradstreet confirmed the seizure of $225.3 million in USDT, calling it the largest cryptocurrency confiscation in the agency's history.

The funds were linked to an international criminal network engaged in human trafficking and romance-investment scams, where victims were lured via fake online relationships and persuaded to invest in fraudulent crypto projects with the promise of high returns.

🔹 Coinbase Played a Key Role in the Investigation

Coinbase revealed that its forensic team worked for several days tracing hundreds of thousands of blockchain transactions from suspicious wallets back to payments made through its platform. This allowed authorities to identify specific victims eligible for restitution.
“Our forensic analysis helped flag the victims and track the suspect wallets. We’re proud to support the fight against crypto-related fraud,” said Coinbase.

🔹 Crypto Scams Skyrocket in 2024

A report from Chainalysis shows that pig butchering scams have soared this year:

📈 Revenue from such scams is up 40%

📈 Deposits into scam wallets surged 210% compared to 2023

📉 However, the average deposit per victim dropped 55%, indicating a shift in strategy: scammers are now targeting more people with smaller amounts.

Additionally, other fraud methods have also surged:

🔹 Address poisoning attacks up 15,000%

🔹 Fake airdrop campaigns

🔹 Scams impersonating the U.S. SEC
One of the year’s most notable events occurred on May 3, when an attacker nearly stole $68 million in WBTC on Ethereum – only to return the funds to the victim. The incident sparked speculation about the motives behind the act.

🔹 Tether Steps In

Stablecoin issuer Tether, acting on authorities’ requests, froze the wallets tied to the scam and stated that it has now frozen over $2.7 billion in USDT linked to illegal activity since its inception. This highlights how stablecoins have become a preferred tool for laundering stolen crypto assets.

#Tether , #Cryptoscam , #CryptoFraud , #CryptoSecurity , #CryptoCrime

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.“

Coinme, a crypto ATM operator based in Seattle, has agreed to pay a $300,000 fine for violating California's rules governing daily transaction limits for crypto kiosks.
A law passed in 2023 in California limits crypto ATM transactions to a maximum of $1,000 per customer per day. According to the California Department of Financial Protection and Innovation (DFPI), Coinme exceeded this limit and also failed to include mandatory information on receipts issued to customers at its kiosks located in grocery stores and convenience shops across the state.
This marks the first enforcement action under the state’s new Digital Financial Assets Law.
In addition to the fine, Coinme will also pay $51,700 in restitution to a senior citizen from California who claimed to have been defrauded. DFPI officials stated this case sends a strong message to crypto kiosk operators that the state is serious about enforcing rules designed to protect unsuspecting residents from scams.

Growing Concern Over Crypto ATM Scams
Authorities have raised concerns over the rising number of scams involving crypto ATMs, where victims are tricked into depositing funds into kiosks and transferring them directly to scammer-controlled wallets. The 2023 Digital Financial Assets Law was designed to tackle such risks by introducing regulations for kiosk operators.
According to FBI data, nearly 11,000 complaints involving crypto ATMs were filed in 2024, with reported losses exceeding $246 million—an increase of 31% from the previous year. Seniors aged 60 and older were among the most frequently targeted victims.

Bans and Raids in Other Regions
While California is tightening regulations, Spokane, the second-largest city in Washington, has gone a step further by banning crypto ATMs altogether. The move aims to shield citizens from scams and money laundering. Local law enforcement reports that funds from these kiosks have been traced to destinations like China, North Korea, and Russia.
Meanwhile, in Australia, federal police launched a crackdown on illegal use of crypto ATMs, contacting over 90 individuals—including both scam victims and suspected offenders.

In a dramatic case in Texas, a county sheriff personally intervened and brought a power-cutting tool to a crypto kiosk after a family reportedly lost $25,000 to fraud.

#Cryptoscam , #CryptoATM , #DigitalAssets , #BitcoinATM , #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.“

She was alone.
After her husband passed, she just wanted to fulfill his dream:
> Invest in crypto. Secure the future.”l
She put everything into a project he believed in.
But no one told her it was a scam.
Within a month…
All the money was gone.
Her husband’s dream became a nightmare.
She now works two jobs. Still pays the loan. Still wears his watch.
And still whispers,
> One last chance… please.
💬 Have you ever trusted the wrong coin?
💭 Ever wished someone guided you before it was too late?
👇 Learn from her pain. Start your journey wisely.
👉 Join Binance using my referral link
Invest smart, not blind.

Житель Флориди Браян Файрстоун втратив $860 000, ставши жертвою шахрайської схеми, організованої денверською «школою торгівлі» Alpha Stock Investment Training Center (ASITC) та фіктивною біржею CoinBridge Partners. Згідно з позовом, поданим до федерального суду 11 червня 2025 року, Файрстоуна заманили обіцянками величезних прибутків через сигнальну торгівлю. У грудні 2024 року представник ASITC, який назвався Джоном Смітом, запропонував навчання криптотрейдингу та «подарував» $500 для старту.
Початковий баланс Файрстоуна зріс до $55 000, що спонукало його вкласти ще $50 000. Незабаром рахунок нібито сягнув $24,5 млн, але «системна помилка» під час торгівлі USDT обнулила кошти. Файрстоун узяв позики на $1,33 млн від ASITC, але платформа закрила його рахунок. CoinBridge, яка заявляла про $10 млн інвестицій, виявилася фальшивою.
Цей випадок підкреслює ризики нерегульованих криптоплатформ. Позов звинувачує ASITC і CoinBridge у шахрайстві та вимаганні. Криптоспільнота закликає інвесторів перевіряти платформи перед вкладеннями.
Підписуйтесь на #MiningUpdates , щоб уникнути шахрайства!
#Cryptoscam #bitcoin #SignalTrading #Fraud_alert #CryptoNews #InvestorSafety