Crypto scammers were caught In South Korean

Seven South Korean people have been arrested for running a large-scale $38 million scam
22 November 2017   725

They offered to investors a regular profit at the rate of 180 percent if they have invested with bitcoin. The total number of victims is about 3900. All of them are aged 40-60 years. These criminals have created “bitcoin investment firm” in Gangnam, Seoul back in January last year. Taking advantage of the ignorance of their investors, they were able to steal money of $ 38 million.

These seven criminals were arrested by Jeonbuk Iksan police department and cybersecurity. They are accused in a lot of charges: money laundering and operating an “investment firm” without proper licensing from the South Korean financial authorities. Police first approached them when some investors called that the group obtained $4.1 million of the funds illegally instead of investing in bitcoin. After investigation the group was eventually arrested and the ponzi scheme was close up.

The group approves that they weren’t going to do this ponzi scheme. At first time they would like to make the real cripto-project and they would like to help their investors to master this market. But then they decided to abuse its clientbase by alluring investors into a scam.

HashFlare Users to Face Withdrawal Issues

Looks like Bitcoin cloud mining is not super profitable
18 July 2018   130

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.