The post Global authorities tighten screws on digital asset scams appeared on BitcoinEthereumNews.com.

Homepage > News > Finance > Global authorities tighten screws on digital asset scams Authorities on both sides of the Atlantic intensified the ongoing global crackdown on digital asset scams, frauds, and ponzis this week, as the U.S. Securities and Exchange Commission (SEC) took its first actions against romance scammers, while German authorities closed almost fifty digital asset exchanges, accusing them of fostering an “underground economy” for cybercriminals. Last week, the SEC announced it had charged five entities and three individuals in connection with two “relationship investment scams” involving ‘fake’ digital asset trading platforms NanoBit and CoinW6. Relationship investment scams, also popularly known as “pig butchering” scams, are a type of fraud where scammers build trust with victims over time, convincing them to invest more money then stealing all their funds. In this case, the perpetrators allegedly stole nearly $3.2 million after gaining investors’ trust and pursuing relationships with them via social media, according to the SEC’s September 17 statement. “Relationship investment scams, including those involving crypto asset investments, pose a risk of catastrophic harm to retail investors, and the threat is increasing rapidly as these scams become more popular with fraudsters,” said Gurbir Grewal, Director of the SEC’s Division of Enforcement.  “In these two cases, we allege that fraudsters created fake crypto ecosystems that displayed false information to investors. Our allegations serve as a reminder to the public to be on heightened alert about potential scams involving investment opportunities promoted by strangers on social media.” The regulator’s complaint against NanoBit Limited, filed in U.S. District Court for the Eastern District of New York, charged the fake trading platform, along with six other defendants—Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, Fei Liao, and Hua Zhao—with violating the antifraud provisions of the federal securities laws.  The SEC claimed that the defendants defrauded at least 18…

---

Filed under: News - @ September 24, 2024 9:26 am