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| March 20, 2019

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Scam Archives -

Heads Roll at Schools After Admissions Scam Unveiled

March 13, 2019 |

The college admissions scheme in which actresses Lori Loughlin, Felicity Huffman, and dozens of others are accused has already caused heads to roll at at least two of the involved colleges, CNN reports. Stanford University fired head sailing coach John Vandemoer just before he pleaded guilty to racketeering conspiracy in…
Newser

Homeless Man, NJ Woman Admit GoFundMe Scam

March 7, 2019 |

A homeless man and a New Jersey woman who scammed more than 14,000 kind-hearted people with a fake story on GoFundMe are facing time in federal prison. Johnny Bobbitt, Jr., 36, pleaded guilty Wednesday to conspiracy to commit money laundering and 28-year-old Kate McClure pleaded guilty to conspiracy to…
Newser

‘Squeaky-Clean’ Guy Accused in $750K Super Bowl Scam

February 2, 2019 |

A Georgia man has apparently swindled his family, friends, and personal connections—and even his own mother—out of more than $ 750,000 in a Super Bowl ticket scam, Deadspin reports. Seems Ketan Shah, a prominent Gwinnett County businessman and father of two, sold premium tickets to nearly a dozen…
Newser

Homeless Vet in GoFundMe Scam Arrested

January 10, 2019 |

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…
Newser

All Money Refunded in Alleged GoFundMe Scam

December 25, 2018 |

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….
Newser

US Woman Could Get Life for Jamaica Lottery Scam

December 17, 2018 |

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…
Newser

U.K. Cryptocurrency Exchange Cubits Shuts Down After $33M Scam

December 14, 2018 |

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. 

Also read: Former Mt. Gox CEO Could Face 10 Years in Jail Over Embezzlement

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.

U.K. Cryptocurrency Exchange Cubits Shuts Down After $  33M Scam

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.

Fruitless Efforts

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.

U.K. Cryptocurrency Exchange Cubits Shuts Down After $  33M Scam

“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.

Cheated?

U.K. Cryptocurrency Exchange Cubits Shuts Down After $  33M Scam

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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The post U.K. Cryptocurrency Exchange Cubits Shuts Down After $ 33M Scam appeared first on Bitcoin News.

Bitcoin News

Nissan: ‘Deepest Regret’ as It’s Charged in Ex-CEO’s Scam

December 10, 2018 |

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…
Newser

Court: Man Put Clothes on Stand-In Corpse for Scam

November 30, 2018 |

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…
Newser

Was Touching Story of Helpful Homeless Man a Scam?

November 15, 2018 |

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…
Newser