Scam Archives -
A homeless veteran charged with engaging in $ 400,000 GoFundMe scheme has been taken into custody in Philadelphia after he failed to make a scheduled court appearance, the AP reports. Johnny Bobbitt was due in a New Jersey court Tuesday to face charges he violated court-ordered conditions that allowed for…
Anyone who fell for the tale of the down-on-his-luck Good Samaritan on GoFundMe has gotten their money back. The crowd-funding website says it has refunded all of the more than $ 400,000 that came in from more than 14,000 people, reports People . Police have since charged Johnny Bobbitt Jr….
A federal judge in North Dakota on Monday ordered a Rhode Island woman convicted of funneling lottery scam money between the US and Jamaica to remain jailed pending a February sentencing hearing where she could face a stiffer sentence than the alleged mastermind, the AP reports. “Her hands were all…
Cubits, a London-based digital asset trading platform, has been forced into administration after fraudsters reportedly stole €29 million (about $ 32.5 million) from the exchange in February. The company claimed “it fell victim” to an elaborate scam orchestrated in collusion with three of its clients.
Exchange Enters Into Voluntary Administration
The administration means that investors cannot deposit or withdraw funds until further notice. It’s not clear how much worth of bitcoin the exchange was holding on behalf of customers at the time of closure.
Cubits has now appointed Steve Parker and Trevor Binyon of Opus Restructuring & Insolvency as joint administrators. In a statement, the company said it had failed to recover from the “criminal act,” which involved the accounts of three customers.
Cubits, the trading name of legal entity Dooga Ltd., said the “serious criminal act” had crippled business operations and “finally led to the difficult decision to place the company into administration.”
Three Chinese traders allegedly purchased BTC through the platform via Pay Secure Online (Paysec), a payment processor based in Malta. However, Paysec never remitted the funds to Dooga, in an alleged scam. Cubits has now filed a lawsuit in Malta to force Paysec to reimburse the €35 million ($ 39.2 million it supposedly owes the exchange. The reimbursement claim includes funds from the three Chinese accounts and others.
The company stated:
The criminal act happened in February 2018 and involved the accounts of three clients. Bitcoins with a market value at that time of approximately €29 million were properly delivered and subsequently withdrawn, with the customers apparently colluding with fraudsters. Dooga has never received the equivalent in fiat from the payment processor responsible for carrying out the transaction.
Dooga stated that it had informed the responsible authorities in the U.K., Malta, China and Germany of the scam. It has also filed several criminal complaints, but nothing has materialized, forcing the exchange to file for administration.
With administration – the U.K. equivalent of bankruptcy – the administrator will seek to restructure the company in financial distress, especially its debt. During this period, investors or creditors cannot make legal claims against the entity, giving it opportunity to recover.
Cubits said it had made “every possible effort to recover” the funds without success. The only other option was to file for bankruptcy.
“This decision secures the current position whilst the administrators seek offers for the business and its assets,” said the exchange. “The role of the administrators will be to work with those who are owed money by the company and to collect monies that are owed. The key objective is to achieve the best possible outcome for creditors and recover as much as possible of the funds owed to the company.”
Parker, who will also be working together with Allister Manson, technology partner at Opus Restructuring & Insolvency, and Nicholas Parton, head of forensic accounting at Opus, said his duties as administrator involve collaborating with those who are owed money by Cubits and to collect money owed to the company. “Dooga’s current position is secure, investigations are proceeding and we will be writing to creditors, formally, this week,” he said.
Users reacted angrily when the Cubits platform suddenly went offline on Monday. The exchange said on Twitter that the blackout was due to “maintenance.” Later, the website began producing a general error message before subsequently announcing that the company was being placed under administration.
User Jamil Khadem complained on Twitter: “Have we been robbed by Cubits? I’ve been waiting for a withdrawal since the 6th of December and the company won’t give me a straight answer.”
Founded in 2014, Cubits has allowed customers to buy and sell cryptocurrency like bitcoin. It also claimed to act as a bridge between virtual currency and more traditional forms of payment, specifically to the online gaming industry.
What do you think about the developments at Cubits? Let us know in the comments section below.
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Tokyo prosecutors have charged Nissan’s former chairman Carlos Ghosn, another executive, and the automaker itself for allegedly underreporting income. The charges imposed Monday involve allegations Ghosn’s pay was underreported by about $ 44 million between 2011 and 2015, per the AP . The prosecutors said earlier that the allegations were the reason…
A Minnesota man accused of faking his own death seven years ago to collect a $ 2 million life insurance policy arranged for a stand-in corpse to be dressed in his clothes in Moldova, according to a judge’s detention order. Igor Vorotinov, 54, also planted his identification on the body before…
It’s not only the founders of a disputed GoFundMe campaign that raised $ 400,000 for a homeless man who find themselves in hot water . NBC Philadelphia reports Kate McClure, Mark D’Amico, and Johnny Bobbitt will face charges of conspiracy and theft by deception for allegedly concocting a false story to…
The Australian Taxation Office (ATO) has warned taxpayers to be “on high alert” for phone scammers demanding payment through bitcoin ATMs. It said payments via BTC cash machines have now overtaken iTunes vouchers as the most common method of scam payment reported to the tax authority.
Tax Month November Is Prime Time for Fraudsters
Around one million Australians are due to pay their taxes to the ATO on Nov. 21. In a statement on Wednesday, ATO assistant commissioner Kath Anderson said fraudsters are growing increasingly sophisticated. They hope to exploit vulnerable people, often using aggressive tactics to swindle people out of their money or personal information, she lamented.
“November is a prime time for scammers as they know lots of people have tax bills to pay. Be wary if someone contacts you demanding payment of a tax debt you didn’t know you owed,” Anderson warned.
She added that the tax collector “will never ask you to make a payment into an ATM or via gift or prepaid cards such as iTunes and Visa cards, or direct credit to be paid to a personal bank account.” If uncertain about the legitimacy of a call, Anderson advised taxpayers to “hang up and call us.”
Bitcoin Scams on the Rise
Incidents of bitcoin scams are on the rise throughout the world. In November last year, police in Canada said more than 40 people had lost 300,000 Canadian dollars (U.S. $ 228,000) to phone scammers, who compel victims to make bitcoin ATM deposits on the threat of arrest for tax default.
Similarly, a Canadian woman suing for $ 48,125 sent to a phone scammer over a bitcoin ATM lost her court case in October. A judge of the Charlottetown Provincial Court ruled that the fiat money deposited by the woman into the teller machine belonged to Instacoin ATM Canada Inc., owners of the digital cash dispensing unit.
In Australia, scammers have made off with $ 1 million Australian dollars (U.S. $ 720,000) since the beginning of July after fooling people over tax according to the ATO. During the period, the tax body attended to more than 28,000 reported cases of scam attempts.
Anderson, the tax office assistant commissioner, stated that ATO officials would never demand immediate payment of a debt, use aggressive or rude behavior, or threaten taxpayers with arrest. She said:
That’s just not how we do business. We understand that it can sometimes be difficult to pay tax bills on time, so we urge anyone who is worried about paying to contact us as soon as possible as there are a range of ways we can help.
Phishing for Financial Information
Australians with tax bills of under $ 72,000 have the option to set up a payment plan with the authority, said Anderson, warning people against sharing their personal information with strangers. Since July, about 6,000 taxpayers have given away their personal or financial information to fraudsters through phishing scams.
“Your identifying information like tax file numbers, bank account numbers or your date of birth are the keys to your identity, and can be used by scammers to break into your life if they are compromised,” she warned. Some of the signs that give away scammers include aggressive or abusive behavior, threats of immediate arrest, and requests for payment through bitcoin ATMs or gift cards.
What do you think about the rising incidences of bitcoin ATM tax fraud in Australia? Let us know in the comments section below.
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The post Bitcoin ATMs Most Common Scam Payment Method in Australia appeared first on Bitcoin News.
The Federal Trade Commission announced Thursday that it’s looking to shut down the “largest overseas real estate investment scam” it has ever encountered: an unfinished luxury development in Belize whose owners, the agency said, bilked people out of more than $ 100 million.
The scheme’s perpetrators…
Election Day is finally becoming a referendum on something that really matters: immigration. Who gets to live here? What does citizenship mean? What kind of country do we want? These are not small incidental questions.