Cryptocurrency Scams

Australia’s financial intelligence agency, AUSTRAC, has launched a sweeping crackdown on inactive registered crypto exchanges, aiming to eliminate potential vehicles for fraud and financial crime.

Scammers are sending fake letters to Ledger users, pretending to be from the company and asking for their wallet recovery phrases. The letters target people affected by a past data leak, and Ledger has warned users not to share their 24-word phrase under any circumstances.

The UK is overhauling its crypto rules to support Web3 innovation while protecting consumers, working closely with US regulators and focusing on bad actors. Still, scepticism lingers in the crypto community due to past regulatory overreach and uneven enforcement.

Alex Mashinsky, former CEO of Celsius, is facing a possible 20-year prison sentence for leading a $7 billion crypto fraud. He misled users about the safety of their funds while secretly profiting from risky trades and token sales.

In 2024, Americans lost at least $9.3 billion to crypto scams, making up more than half of the $16.6 billion total reported losses from internet crimes. The FBI ramped up efforts to tackle fraud, preventing $286 million in losses through initiatives like Operation Level Up.

At the annual OSC Dialogue in Toronto, CEO of the Ontario Securities Commission, Grant Vingoe, warns about the increasingly lawless digital landscape, where scammers have exploited global instability, regulatory gaps, and advanced technology to commit fraud on an industrial scale.

This new tactic marks a significant escalation in Lazarus' ongoing campaign to infiltrate and exploit the global crypto and Web3 sectors.

North Korean hackers linked to the Lazarus Group set up two fake US companies, BlockNovas LLC and SoftGlide LLC, to target cryptocurrency developers with malware through fraudulent job offers. This operation, using fabricated identities and AI-generated profiles, aims to steal sensitive data and cryptocurrency credentials.

After months of legal Cat-and-Mouse, NBA legend Shaquille O’Neal has quietly inked a settlement deal with disgruntled investors, who blamed him for the million dollars they have lost following FTX's bankcruptcy.

Eugene William Austin Jr., aka Hugh Austin, was sentenced to 18 years in prison for running a $12 million crypto fraud with his son, Brandon. Posing as brokers, they promised high returns to over two dozen victims but used the funds to fund a lavish lifestyle.