CFTC will now pay for exposing fraudulent schemes

Whistleblowers may be awarded with a whopping $100,000
19 February 2018   592

The US CFTC has received a great number of complaints the concern the financial loss of ordinary American citizens who became the victims of so called “pump-and-dump” schemes that deal with virtual currencies. The commission is able to enforce anti-fraud measures in case virtual currency cash market are operated as a commodity in interstate commerce.

So, today it has announced a bounty with the following conditions:

If you have original information that leads to a successful enforcement action that leads to monetary sanctions of $1 million or more, you could be eligible for a monetary award of between 10 percent and 30 percent.

 

The US CFTC

The commission stresses out that such fraudulent schemes have always been present. And the nature of these schemes has no changed at all: false promises of groundbreaking products, major breakthroughs; then the demand grows along with  share prices and finally at some point - prices crash and the investors are left with nothing. Nowadays, thanks to social media and messaging apps the organization of such schemes and the hype became anonymous.

The risk grows as the number of new virtual currencies and the respective tokens grows more rapidly in a mostly unregulated area of financial transactions. In order to protect oneself, CFTC recommends to:

  • thoroughly study the virtual currencies using all the means necessary,
  • guaranteed investment is a fiction,
  • not to trust any ads and not to rely on a single tip of any token prior to purchase.

On the other hand, such bounties are often the stepping stones in establishing more legislative agenda and future enforcement budget. Certain actions on setting up the control have already been made by CFTC earlier this month with regulation workgroup and crypto fraud warnings.

HashFlare Users to Face Withdrawal Issues

Looks like Bitcoin cloud mining is not super profitable
18 July 2018   98

Users of HashFlare mining pool can't withdraw their funds, while their contracts are threatened with a temporary ban. Even lower restrictions on withdrawal of funds in the amount of 0.03 BTC caused problems for users, but the service raised the threshold to 0.05 BTC and 0.1 ETH . This is reported by Cryptovest.

In addition, financial pyramids are often promoted under the guise of mining contracts for cloud mining. For last few months, there was a big jump in mining difficulty of many cryptocurrencies, so, old contacts had become unprofitable.

As reported, the reason for the locked funds dates back further - at the beginning of June, so much hashing power was flowing into the Bitcoin network that contracts saw all the mined coins go toward their maintenance fee.

Currently, more and more users who have purchased contracts at earlier stages are facing the fact that they can not withdraw their funds. One of them managed to return the money spent through the bank card operator after filing a corresponding complaint.

To anybody that purchased a Hashflare cloud mining contract with a credit card, it might be possible to get a refund with that credit card as one of my followers tipped me. He bought his contracts at the end of 2017.
 

bccponzi at Twitter

The hash rate of bitcoin increased from 13 EHash / s at the beginning of the year to more than 40 EHash / s in recent months. The difficulty of mining in the present conditions depends on the circumstances of the specific miner. The cost of bitcoin mining for some of them is $ 4,400, while others spend about $ 5,800. However, in 2018, cloudy mining is called an even more dubious occupation than before, especially when it comes to mining bitcoin.