Chinese Watchdog found 421 Scams in Cryptocurrencies

Digital assets space has envolved huge media coverage with reports, focused on the scams: investors are fleeced with the bait of returns or a fraudulent scheme
22 May 2018   1075

The National Internet Financial Risk Analysis Technology Platform (IFCERT) published a statement on May 18, 2018 in order to educate its citizens on common cryptocurrency scams, defining the space’s common scams. During the investigations, the IFCERT’s revealed a common of 421 cryptocurrencies, all displaying attributes of a fraudulent business model. Nevertheless, the watchdog affirms that most of the trading platforms are hosted on overseas servers, making it difficult to track their exact location. The fraud platforms, in the whole, were parted  into broad divisions.

Promoters of Pyramid Scheme Cryptocurrencies provide a bogus guarantee of significant yields and claim to offer handsome commissions to investors who can further bring in more investors. As demonstrated below, the top-tier members make the most profits, with the incentives decreasing as one trickles down the pyramid. In terms of benefits, investors are offered both a  “dynamic (rewards in proportion to money invested)” and “static (fixed)” incentives.

For fraudulent ‘Hard Forks’, the IFCERT has marked an absence of “genuine code,” apart from the total lack of a technical framework to successfully run a blockchain. Nevertheless, promoters deceive naive investors, and promise guarantee returns on the guise of a ‘hard fork’, that would force the coin’s value, and “never fall.”

IFCERT also claimed that the cryptocurrencies issued by OTC-Only Platforms are extremely phony, and not tradable on any cryptocurrency-exchange apart from their own. These determined coins are allegedly controlled by institutional investors, who manipulate the digital asset’s price by purchasing large amounts in quick succession, thereby causing a “pump,” and deceiving investors who can mistake it as a real store-of-value.

Authorities to Study Bankrupt QuadrigaCX

Canada Revenue Agency sent a request for access to the tax info from Oct. 1 2015 to Sep. 30, 2018
18 September 2019   43

The Canadian Revenue Agency (CRA) intends to examine corporate declarations that ceased to exist as a result of the bankruptcy of the QuadrigaCX bitcoin exchange, The Globe and Mail reports.

CRA sent a request for access to the tax reporting of the exchange from October 1, 2015 to September 30, 2018, that is, on the date when QuadrigaCX tentatively began problems with the withdrawal of funds.

The E&Y auditor, acting as the trustee of the exchange, intends to discuss the tax request and obtain permission from the court to disclose information.

At the same time, the company noted that one way or another they are forced to comply with the CRA requirements, although this will take a lot of time and delay the payment of compensation to victims.

At the beginning of the year it became known that QuadrigaCX lost access to user funds by $ 190 million, and somewhat later, Indian authorities confirmed the death of the founder of the exchange, Gerald Cotten.