Bitcoin: A Hotbed For Scams?

Some links:

  • We are in September 2019 and Google will most likely help criminals to steal your bitcoins. Or Google have done nothing to filter out criminal fake QR services: see here.
  • Mobile phone operators will also most likely help criminals to steal tens of millions of dollars, see here. The same happened to me: my mobile phone was stolen, and an SFR agent in Paris have issued me a new SIM card without asking for my ID. Any criminal can steal your identity and mobile phone operators do not care.
  • Price manipulation is kind of allowed. L’est admit it is OK to pay an exchange to list your coin. But there is worse.
    • Karpeles admitted in a Japanese court that he is responsible for the bot Willy fraudulent trading. However if bitcoin went up a lot it made things worse for Gox and made eventually Gox collapse.
    • Now stable coins could be a source of instability. Researches also claim that stable coins can help to pump the price of bitcoin. Wicked.
  • Crypto currency is where loads of money gets stolen:
    • It was 1 billion in 2018, see here.
    • Then 1.2 billion in just Q1 od 2019!! See here.
  • In many cases criminals will never go to jail, see here.
  • A lot of fraud is done openly, many people know. There is a sentiment of impunity and lies are scattered all over the place.
    • Smart people will tell you: it is unregulated Wild West there and you should be warned.
    • But this does NOT excuse the shocking lack of public discussion about all the wrong things which are going on here. Cynical attitudes dominate.
  • The world champion of telling lies on a regular basis and not caring at all about his reputation is Craig Wright:
    • previously caught in act trying to cheat the UK journalists,
    • now he is facing charges for forging a signature of a deceased friend in order to steal billions of dollars in bitcoins.
    • then further he is associated in some shameful attempts to further cheat naive people by calling Bitcoin Association something which in the eyes of the whole planet is closer to a scam than to bitcoin even though anybody and go and “fork themseleves”. Yes it is allowed to clone bitcoin and called it “bitcoin XYZT”. What is not legal is to call one self “bitcoin Satoshi” = we are THE main and only bitcoin or the only one which is true.
    • then we have seen more lies and fraud on the same topic, see here and here.
  • There were plenty of ICO scams masquerading to sell Telegram ICO tokens.
  • Several exchanges, primarily Chinese ones, faked trading volume.
  • UFO is back: yes, UFOMiners are clearly a criminal scam, yet Yahoo Finance and CryptoCoinsNews and CoinTelegraph have fallen for it! (again) and kept presenting them as a genuine company for many many weeks/months since Oct 2016.
    • What is also amazing that nobody reports these scams so that they are VERY LIKELY to succeed (some people will just send them money trusting theses reports).
    • Journalists who work at other news outlets such as Coindesk are also guilty for NOT writing a word about these scams.
  • More about thefts in relation to the last big explosion of ICOs, see here.
  • Old stories:
    • More than 11 millions dollars were already lost in bitcoin scams, source: coindesk.
    • Here is a paper about bitcoin scams.
  • At least 325 millions of dollars were earned by creators of CryptoWall malware.
    Bitcoin is disruptive technology for ransoms and though a small minority of about 1.4% of victims pay, criminals are still earning a lot. An ransom payments have exploded in 2016. And in 2017 it became even worse.
  • Recent paper on crypto currrency exchanges.
  • In general, bitcoin exchanges are weak links and naive customers think that their money is safe there, while in fact it isn’t. The typical scenario is that money will be missing for years, and most people will not notice.  It is crucial not to trust crypto currency exchanges. They will fail.  Instead we recommend LEDGER Nano S wallet and some multi-sig capable wallets.
  • There is longer list of ongoing bitcoin scams at
  • A major web page on scams at cointelegraph new outlet.

Few more posts in this category.


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