It seems like scams will never dissipate from the cryptocurrency space.
Scams: They’re More Prominent Than Ever
A man in New York has been arrested and charged with running a fraudulent cryptocurrency operation. 47-year-old Asa Saint Clair claimed that his project was tied to the United Nations (UN) through an international sports development program.
This should have been the first big “no-no” for investors thinking about the operation. What on Earth does the United Nations have to do with sports? This is a worldwide organization that tackles global politics and humanitarian crises.
At the center of the operation was an allegedly new cryptocurrency known simply as IGOBIT. Granted people were willing to invest in the coin, they would own stakes in the operation and garner “guaranteed returns.” This should have been another massive red flag for investors. There are no such things as “guaranteed returns.” Every skilled investor understands that the trading world, whether it involves stocks, bonds or digital currencies, is risky. You have as much chance of losing everything as you do of gaining millions, and any company that guarantees returns is probably false.
Saint Clair told his investors that all money put into the company would go towards an organization known as the “World Sports Alliance,” which supposedly had ties to the UN. In addition, the group was also slated to work on “global development projects.” The unfortunate fact is, however, that the coin had never been created, nor were there any plans to develop it in the future, and the World Sports Alliance does not have any cryptocurrency plans on its table.
All money that investors placed in the company ultimately went towards personal expenses for Saint Clair. This includes airfare and restaurant visits. While it’s unclear how much money was swindled, several people have been involved, and the individuals are said to have invested well over $1,000 each.
If found guilty, Saint Clair could face up to 20 years in prison for wire fraud.
As harsh as it all sounds, however, one can argue that this is just one of many scams that can be chalked up to the world of cryptocurrency. These incidents seem to occur on a regular basis, and news of another scam that may have its roots all the way back in 2014 has also surfaced.
Another Classic Example
This case involves Marc Merrill, the co-founder of Riot Games. In a recent interview, Merrill claims as much as $5 million was stolen from him when his Amex credit card information was utilized to purchase cloud space on Amazon, Google and other major tech platforms.
The man being charged with the fraud is Singapore national Matthew Ho, who allegedly used Amazon and other companies to mine cryptocurrencies such as bitcoin and ether tokens. The case is now heading to court.
