Beware of Cryptocurrency Scams!

  • Cryptocurrency Ponzi schemes are being used more frequently around the world.
  • This pyramid-type scam constantly needs to add victims to the “investment network.”
  • The United States Securities and Exchange Commission (SEC) published a series of recommendations for detecting crypto fraud.

The tricks and frauds that are committed with cryptocurrencies are increasingly sophisticated, so it is not easy to detect them with the naked eye. Among these methods to scam the unwary with cryptocurrencies, Ponzi schemes, where the scammer shows victims profits that they will never be able to collect, stand out.

The Ponzi scheme has been used in the United States, Latin America, Asia, and Eastern Europe, and has already reached large investors from these regions. As the market for crypto assets has expanded, so have the scam networks that are permanently lurking.

In almost all cryptocurrency scams, the so-called Ponzi scheme is present. A very popular form of pyramid scam throughout the world, it operates by attracting money from investors who are promised that significant investments in cryptocurrencies will generate interest of up to 25% in a short time.

Generally, to gain the trust of the victims, the criminals pay the profits or interest as agreed. Although in reality, the money used to pay the generous returns does not belong to the criminals but to the new victims who are joining the scheme.

So the system needs to grow constantly so that the…

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