ChainCatcher news, according to The Block, the U.S. Department of Justice announced on Friday that 35-year-old Oklahoma man Travis Ford pleaded guilty to a charge of conspiracy to commit wire fraud, related to his role in operating a "fraudulent" cryptocurrency investment company, where he served as the co-founder, CEO, and chief trader of Wolf Capital Crypto Trading LLC (referred to as Wolf Capital).The U.S. Department of Justice stated that from January to August 2023, he attracted individuals to invest millions of dollars in the company through promotions, social media posts, and the company website. Ford allegedly claimed that his daily net returns were about 1-2%, or 547% annually, and ultimately raised $9.4 million from approximately 2,800 investors.The Department of Justice argued that Ford used false promises to entice individuals to invest in the company, then used the investors' funds "to profit himself and his accomplices, to the detriment of the investors." Due to this charge, he currently faces a maximum of five years in prison.

ChainCatcher news, according to a report by Cryptoslate, based on the Ministry of Home Affairs' 2024 annual report, India has intensified its efforts to combat crypto-related scams by collaborating with tech giants Google and Meta (formerly Facebook). The initiative aims to tackle the growing threat of "pig butchering" scams, a form of crypto investment fraud targeting vulnerable groups such as unemployed youth, homemakers, students, and individuals facing economic hardships.The report describes how these scams typically lure victims through social media platforms and search engines, promising high returns on cryptocurrency investments. In recent months, these scams have become increasingly rampant, with investors losing over $3.6 billion to these schemes in 2024. Scammers often impersonate financial advisors or representatives of legitimate investment firms, gradually building trust before convincing victims to transfer large sums of money into fraudulent schemes. The ministry emphasized that fraudsters abuse Google's advertising services and Meta's sponsored ads to launch malicious applications and phishing activities. In response, India's Cyber Crime Coordination Center (I4C) has developed protocols to work directly with these platforms to flag suspicious activities, block ads, and expedite the removal of fraudulent content.

ChainCatcher news, a California resident has sued three Asia-based banks, accusing them of failing to perform basic checks that led to his loss of nearly $1 million in a cryptocurrency scam.According to a complaint filed on December 31, 2024, Ken Liem's attorney claims that his client was contacted about a cryptocurrency investment opportunity via LinkedIn in June 2023 and was persuaded to transfer funds to the scammers. The funds were then deposited into the three Asian banks and ultimately transferred to a third-party account.The attorney alleges that these banks failed to conduct compliance checks such as "know your customer" (KYC) and anti-money laundering, failing to identify the fraudulent activity, thereby allowing the scammers to open accounts and carry out the scam.

ChainCatcher news, as Bitcoin reaches an all-time high, FBI Baltimore Division agent David Paniwozik has noticed an increasing number of criminals attempting to profit from cryptocurrency scams. A major issue is that investors are still unfamiliar with the technology, making them more susceptible to fraud.SA Paniwozik warns, "Whether you want to transfer $1, hundreds of millions, or billions, there is no limit. You can seamlessly transfer it from a wallet controlled in the U.S. to a wallet controlled overseas in just seconds. Scammers have set up their own cryptocurrency exchanges, convincing you that your investment is growing exponentially, or they say you must pay cryptocurrency to 'unlock' jobs that offer high returns."SA Paniwozik has recently observed a surge in reports of employment scams involving cryptocurrency. Losses reported in Maryland increased from $32,033 in 2023 to $3.8 million from January to October this year. "Thus, in Maryland alone, the average person has lost about $15,000 to $20,000 due to these scams," SA Paniwozik added.According to the FBI's 2023 Cryptocurrency Fraud Report, complaints related to cryptocurrency account for only about 10% of total financial fraud complaints, but the amount stolen accounts for nearly 50% of total losses.

ChainCatcher news, 5Money and Storible conducted a study investigating 1,544 global crypto projects from January 2022 to October 2024. The data shows that the United States accounts for as much as 43% of crypto scams, while China and the United Kingdom account for 8% and 7% respectively.In terms of the number of failed projects, the United States also ranks first, accounting for 33%. China (7.63%), the United Kingdom (7.22%), South Korea, and Singapore also have failure rates exceeding 6%, ranking high in the survey results.

ChainCatcher news, according to The Verge, at 6:24 AM Beijing time on September 24, the @OpenAINewsroom account, which shares OpenAI news and has nearly 54,000 followers, posted a now-deleted message promoting the "OPENAI" token.The post stated: "We are very excited to announce the launch of OPEANAI: a token that bridges the gap between artificial intelligence and blockchain technology. All OpenAI users are eligible to receive the initial supply of OPENAI. Holding OPENAI will grant access to all our future beta programs."The post also included a link to a fake version of the OpenAI website. The related false post is currently shown as "unavailable." The account was launched earlier this month.

ChainCatcher news, according to Protos, a team claiming to be Flappy Bird fans plans to re-launch the classic game as a crypto project, but this initiative has faced strong opposition from users.The new version will transform Flappy Bird into a Solana-based Web3 game and claims to be "the world's first open-source, community-owned Web 2 and Web 3 game." The project also mentions the FLAP token, which is planned to be issued on the Telegram blockchain, offering staking options and free airdrops.However, it is currently unclear whether the token will be launched on Solana or Telegram, or if these crypto plans have been abandoned. Users have criticized the project as a "crypto scam" and expressed dissatisfaction with the team's method of acquiring the rights to Flappy Bird.It is reported that Flappy Bird is a bird-flying game released in 2013, which became the most popular free app on iTunes in the United States and China in January 2014, and was described by the UK App Store that same month as "the new Angry Birds." The game also became the most downloaded free app in January.

ChainCatcher news, three former soldiers in India reported to the Pune Chandannagar police, accusing eight officials of a trading company of defrauding them of over 7.981 million rupees (approximately 96,000 USD) through a cryptocurrency scam since 2022. The three invested their retirement savings into the project, lured by promises of doubling their returns in 20 months and a monthly return of 10%.The company's directors and one involved former soldier had previously been arrested in a similar case and are currently held in Yerawada Jail. The police are awaiting court approval for further questioning. Earlier this year, the company held a cryptocurrency seminar in Maharashtra, attracting multiple investors.

ChainCatcher message, according to a new report from the Australian Federal Police (AFP), Australians have lost $122 million (AU$180 million) to cryptocurrency scams in the past 12 months, with most victims being under the age of 50.In a statement on August 28, the AFP revealed that investment scams caused a total loss of $269 million (AU$382 million) last year, with approximately 47% related to cryptocurrency.

ChainCatcher news, the Australian Securities and Investments Commission (ASIC) revealed last Sunday that as part of a broader effort to combat online investment scams, the agency coordinated the shutdown of over 600 cryptocurrency scams last year.ASIC stated that it has helped dismantle 5,530 fake investment platform scams, 1,065 phishing scams, and 615 cryptocurrency investment scams.It is estimated that last year these scams spread through fake news articles and deepfake videos of local public figures, resulting in a total loss of $1.3 billion.The regulator stated in a release: "ASIC reminds all consumers to remain vigilant against social media links promoting online trading and cryptocurrency investments." ASIC added that, on average, about 20 websites are shut down each day, as scammers continue to adapt and find new ways to lure victims.Although there was a surge in cryptocurrency-related scams around the Bitcoin halving event in April, data provided by ASIC shows that this number is declining month by month.

ChainCatcher news, the Washington State Department of Financial Institutions (DFI) has issued a consumer alert reporting multiple cases of cryptocurrency scams involving fake "professors" on WhatsApp and Telegram. This scam involves "companies claiming to be higher education institutions, such as 'business schools', 'colleges', or 'wealth academies', offering courses primarily centered around investing in cryptocurrency.The alleged fraudulent activity typically begins with investors being placed into WhatsApp or Telegram groups, often using arbitrary names that include popular terms like "wealth club", "elite", and "artificial intelligence". These groups are operated by individuals claiming to be colleagues of the company, with titles including professor, consultant, and assistant.Additionally, these companies offer high-value loans or credit lines to help investors join exclusive "VIP clubs" or meet capital requirements for new products. These loans are often arranged informally via WhatsApp, with the company providing misleading account screenshots. When investors attempt to repay these loans, they are told that their accounts will be frozen until external funds are provided, and if they do not comply, they receive threatening messages and legal claims.

ChainCatcher News, the U.S. Securities and Exchange Commission's Office of Investor Education and Advocacy has issued a warning highlighting five common cryptocurrency scams that investors should be wary of to avoid losses. The SEC warns that fraudsters are exploiting the popularity of cryptocurrencies, employing sophisticated techniques that make it difficult to recover funds.First, scammers establish trust through social media or unsolicited text messages, pretending to be acquaintances. They quickly move the conversation off the initial platform to build a relationship and present lucrative cryptocurrency investment opportunities. They create seemingly legitimate but fake websites that display false profits and allow small withdrawals to build trust, only to later request large sums that become inaccessible.Second, scammers capitalize on the hype surrounding emerging technologies like artificial intelligence (AI). They use buzzwords related to AI and high-return promotions to attract investments. AI technology is also used to create realistic websites, marketing materials, and deepfake content that impersonates celebrities or trusted individuals to gain credibility.Third, scammers impersonate trusted sources, including government agencies like the SEC. They use AI technology and hacked social media accounts to send messages that appear to be from friends or family, promoting fraudulent investment opportunities. Even if the promotions seem to come from well-known figures, they could be scams.Fourth, the SEC warns: fraudsters may exploit cryptocurrency assets for pump-and-dump schemes, including so-called "meme coins" that reference popular culture or internet memes. "For example, scammers might create a memecoin and then heavily promote it on social media—sometimes calling it a 'pre-sale'—to entice others to buy and 'pump' or inflate its price. Then, the promoters or others working with them will 'dump' or sell before the hype ends, profiting from the inflated price," the securities regulator points out. "Typically, after the promoters sell and profit, the price will quickly drop, leaving others who bought the tokens with significant losses."Finally, scammers request additional fees for withdrawals, known as advance-fee fraud. They may claim that accounts are frozen or under investigation, or ask for repayment of alleged erroneous deposits. Scammers also target previous victims, promising to help recover lost assets while demanding additional fees or private keys, leading to further losses. Ultimately, the SEC advises investors to avoid making decisions influenced by unsolicited contacts or social media recommendations, emphasizing the necessity of independently verifying any claims and exercising caution with investments that require payment through cryptocurrency assets.

ChainCatcher message, CoinMarketCap announced on social media that it will never send direct messages to users first. If a user receives a direct message claiming to be from CMC asking for funds, it is definitely a scam.CoinMarketCap reminds users to verify before sending any funds.

ChainCatcher news, according to Reuters, Australian prosecutors have dropped billionaire Andrew Forrest's lawsuit against Meta.A spokesperson stated that the department found insufficient evidence to proceed with the prosecution. In February 2022, Andrew Forrest filed a lawsuit against Meta, claiming that Meta failed to prevent cryptocurrency scam ads using his image and name on Facebook. In the documents submitted for the case, Andrew Forrest stated that Meta promised him in 2019 that it would help remove cryptocurrency scam ads featuring his face, but these ads continued to be shown to Australian Facebook users, resulting in significant losses for victims.

According to ChainCatcher news, the Financial Times reported that British police seized nearly $1.8 billion worth of Bitcoin (BTC) from a Chinese investment fraud case. The Southwark Crown Court learned that the defendant Jian Wen is accused of laundering money on behalf of her former employer Yadi Zhang (real name Qian Zhiming).In 2018, British police seized four devices containing over 61,000 Bitcoins, which were valued at £1.4 billion when fully recovered in July 2021. Yadi Zhang stole approximately £5 billion from over 128,000 investors and subsequently converted it into Bitcoin. Yadi Zhang is currently at large, and Jian Wen denies the related charges; she is on trial for allegedly assisting in converting some of Yadi Zhang's Bitcoins into cash, property, jewelry, and other luxury items.

ChainCatcher news, according to The Block, Blockfence security researchers have reported that since April 2023, criminals have created over 1,300 scam tokens, obtaining approximately $32 million from more than 42,000 victims. This operation is mostly automated, and the created tokens often resemble those of companies or projects that have not yet announced or launched their tokens, subsequently introducing false trading volumes to deceive traders. Although the token contracts appear to have multiple security measures, in reality, scammers can still arbitrarily burn the tokens of holders, create unlimited tokens for themselves, and forge the maximum supply of the tokens.

ChainCatcher news, Israeli businessman Moshe Hogeg, who was accused of misusing ICO funds as early as 2018, has been charged by Israeli police with fraud, theft, money laundering, and tax offenses, and is said to have defrauded investors of $290 million.Currently, the Israeli police have submitted a recommendation to the Israeli prosecutor, who will decide whether to file charges and review the evidence of the crime.