World’s Top Cryptocurrency Scams

Currency scams and illegal business dealings give Bitcoin a bad name. And while Bitcoin Australia likes to show our audience the potential and awesomeness of cryptocurrencies, it is important to remember that this is not always the case. To raise awareness, we’ve rounded up the top four scams in the industry.



This currency is marketed as a cryptocurrency exchange with its own secure and private blockchain network. In fact, OneCoin has become known as one of the biggest scams in the industry.

The coin is promoted by two offshore companies in Belize and Dubai, both owned by Bulgarian magnate Ruja Ignatova, and a quick scan of OneCoin’s website doesn’t raise red flags.

Self-described as “the first transparent global cryptocurrency for everyone,” the company presents a sleek and polished look to the public. It claims to provide affordable educational materials to traders, ranging in price from $200 to more than $300,000.

However, behind this veneer lies a more sinister reality.

OneCoin has been widely exposed as a ponzi scheme bent on stripping unsuspecting investors of their savings. When a customer buys the ‘educational material’, their money is transferred to a pre-existing client under the guise of an investment return.

This cycle continues until the number of pre-existing customers exceeds the amount of money being raised by first-time buyers.

OneCoin and its recruiters defend their brand. They maintain that OneCoin is a legitimate business. However, reports are constantly emerging of investors being taken advantage of.

As far as we’re concerned, just stay clear.


While its founders are now under arrest and charged with fraud, CentraTech rose to popularity in 2017 when it raised $32 million in an initial coin offering.

The company presented itself as a cryptocurrency exchange in partnership with Visa and Mastercard. This couldn’t be further from the truth. In fact, the credit card companies had never heard of Centratech, let alone agreed to back it.

But this was just the beginning.

Centratech’s board of directors was a lie, assembled using stock images of random people or photos stolen from Facebook. Nathaniel Popper, a writer with The New York Times, tweeted this reaction to his followers:


Nathaniel Popper

In a media release following the Centratech trials, deputy U.S. Attorney Robert Khuzami does not mince his words.

“As alleged, Raymond Trapani conspired with his co-defendants to lure investors with false claims about their product and about relationships they had with credible financial institutions. While investing in virtual currencies is legal, lying to deceive investors is not.”

Boxer Floyd Mayweather and rapper DJ Khaled, alongside a number of celebrities, promoted Centratech.

Dragon Coin

News emerged in August that a Finnish investor lost nearly $24 million in bitcoin thanks to the shady dealings of Dragon Coin. The Thai cryptocurrency markets itself as the currency for the entertainment industry. In reality, it’s a currency for scammers.

An investigation by Thailand’s Crime Suppression Division (CSD) reveals Finnish businessman Aarni Otava Saarimaa was fleeced by a gang targeting cryptocurrency investors.

The fraudsters pitched a plan to build a casino and linked digital currency, but after amassing investment funds from their targets, the Thai gang immediately cashed out. The earnings total nearly 797 million Thai Baht.

According to the Asia Times, “about one quarter of this was said to have been used to buy 14 plots of land, with the rest being deposited into bank accounts of three suspects, all siblings.”

The suspects include Thai actor Jiratpisit Jaravijit and his family.

NCR Coin

Based out of Surat in western India, NCR Coin is the latest cryptocurrency Ponzi scheme to make headlines.

In June 2018, news emerged of a company selling fake currency with no investment returns. Instead, people found themselves stripped of their savings with no recourse According to, the scheme has 30 victims and counting.

The Hindustan Times reported that this is not the first scam like this in India. According to a correspondent in Lucknow:

“[The fraudsters] created a user ID on different virtual currency exchange websites and put bitcoins on sale. They first lured traders to purchase the bitcoins at low prices and even transferred some into their e-wallets to win their trust.”

After establishing trust, the NCR Coin scammers transferred the original currency to their bank accounts and proceeded to vanish.

The Indian police have since arrested six people with connections to the scam.

While the stories above are worse-case scenarios, anyone anywhere can be caught up in a cryptocurrency scam. In such a young industry, criminals see opportunities to defraud and steal from inexperienced investors.

Author: Bitcoin Australia
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Market Update with Jordan Lindsey: The Latest News in Crypto and Blockchain

Blink and you might just miss it. Innovation moves at a startling pace. Cryptocurrency and blockchain technology are making a serious impact on the global economy. As innovators look for ways to implement this budding technology, regulators are scrambling to keep up. The result is a quickly evolving landscape. The informed investor needs to do more legwork than before just to stay up to date on current events.

Luckily for you, Jordan Lindsey, the founder of the Bitcoin Growth Bot and longtime FOREX investor, stays tuned into all things crypto and blockchain. With help from his YouTube channel, we bring you relevant news. Here are some of the latest happenings in the cryptocurrency sphere:

South Korean Bitcoin Scheme Scams People Out of $20 Million

Two South Korean men were ordered to pay 15 and 8 million dollars respectively for their role in a Bitcoin pyramid scheme. The men were able to cheat people out of 20 million dollars, or 20 billion Korean Won. The two men began their scheme in 2015 and had a multi-level system that claimed investors would see big returns.

Cryptocurrency certainly has a bit of a reputation problem. The rapid development of this new market has led to many people taking advantage of novice investors. The growth and mainstream acceptance of cryptocurrency may be tied to the ability of regulators stopping illicit use of crypto. Reputation matters, especially when it comes to currency. People want to have absolute confidence in the currency they are using.

The tricky part is maintaining decentralization while providing a safe environment for investors. The design of Bitcoin doesn’t lend itself to stealing from people. It is just that novice investors are flocking to cryptocurrency because of all the excitement. These people make extremely easy targets and predators are taking advantage. Regulation could help to stop people from misusing Bitcoin. This, in turn, could help with the reputation of cryptocurrency and help it gain more mainstream acceptance.

Of course, regulations can only go so far. People must self-educate themselves as well. That’s why it’s important to follow trusted sources of advice, like Jordan Lindsey, to gain the knowledge you need to be successful as a cryptocurrency investor.

Walmart Investigating Ways to Use Blockchain Tech

Walmart has recently filed for a patent looking to use blockchain in payment data storage. Walmart would use a digital ledger to allow customers to see where their payments are going. The technology would be closed off to outsiders, making it a private blockchain.

One of the patents said:

“In one aspect, provided is a vendor payment sharing system, [which would] automatically process payment for a total amount due for the products and services related to obtaining and delivering the products; automatically dividing the payment between parties that provided services related to obtaining and delivering the products; and encrypt the payment and the division of the payment with a blockchain.”

It’s pretty clear that Walmart wants to be on the cutting edge when it comes to blockchain technology. This is just one application of blockchain technology that can enhance business worldwide.

We are in a time similar to the period right after the creation of the internet. Everyone can agree that blockchain and cryptocurrency are big, we just don’t know exactly how they will be used yet. There are so many potential applications of blockchain technology that it will be a long time before we get a better picture of how it will change global business. It will be very interesting to monitor any other patent filings from large companies in the coming months as businesses strive to stay ahead of the game.

Bitcoin Declared Permissible in Islamic Law

An Islamic Scholar conducted a study to determine whether cryptocurrency was permissible under Islamic Law. The good news for the over one billion Muslim people worldwide is that this Islamic Scholar concluded that Bitcoin was indeed permissible.

Now Bitcoin is looking at another possible influx of investors. Recent price surges in Bitcoin and other cryptocurrencies have analysts wondering what caused the spike. It is likely that positive news in the cryptocurrency sphere have driven the price up.

Worldwide, the interest in Bitcoin and other cryptocurrencies is only growing. It wasn’t so long ago that you would have been met by a blank stare when you began talking about cryptocurrencies. Now it’s tough to find someone who hasn’t heard of them.

Cryptocurrencies are Bouncing Back

While cryptocurrencies have seen a sharp decline in price from their stunning highs late last year, they are finally beginning to bounce back. Bitcoin, Ethereum, and other major cryptocurrencies have seen a surge in price in recent days.

Analysts like Jordan Lindsey are attributing the bounce back partially to the end of tax season and partially to the positive environment surrounding cryptocurrencies. Many Americans might have liquidated their crypto investments in order to help them pay taxes. Many traders, including Jordan Lindsey, feel that things are going well in the cryptocurrency market and that we may be switching from a bear market to a bull market.

Of course, only time will tell if Bitcoin and other cryptocurrencies will climb back and beyond their previous heights. The important thing as an investor in cryptocurrency is to make sure you plan on being invested for the long haul. Trying to time the market is a game which very few people win. The smart investor invests for the long haul, regardless of market fluctuations. An investment in cryptocurrency should be based on confidence that digital currency could revolutionize finance as we know it.

Another Co-Founder of Centra Facing Charges of Fraud

The DOJ has charged another co-founder of Centra with fraud. This news comes after two Centra founders have already been arrested and charged. The main charge for them is securities fraud. The Deputy US Attorney said that while investing in digital currency is legal, intentionally lying to deceive investors is not legal.

While early adopters of cryptocurrency may not be fans of regulation, it is hard to argue that this kind of regulation is bad for the market. People trying to take advantage of others, regardless of the medium they use, must be held accountable. The DOJ is sending a message that even those in the digital currency will be held accountable.

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Author: Caleb Garvin
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Top 10 Trends for Blockchain Technology in 2018 and Beyond

Like the dot-com bust of the early 2000’s, real companies will emerge through a crowded field of tulips.

The recent crypto crash this past February (and continuing into April) instills ripples of fresh fear, uncertainty, and doubt into 2018. Could it be an omen of bad things to come? However, the recent correction is arguably very good news for the space in need of consolidation. Let’s take into account the past 12 months; we have only seen parabolic growth in the prices of cryptocurrencies. This is fueled by a strong element of speculation not seen since 1999 or 1636, depending on whom you ask.

In a frothy market, these types of corrections are beneficial longer-term because they clear out speculators. During these episodes, companies without product-market fit will accelerate their burn rate and fail faster.

That said, there are many ICOs without a single tangible product, clear road map detailing implementation, or glaring technical flaws whose token market valuations remain sky-high for no sound reason. As we dive deeper into 2018, the list of long term legal liabilities and tax woes will start to catch up. As a whole, there is a positive secular trend in terms of overall market capitalization because more people are adopting blockchain technology and cryptocurrencies. Even with sharp corrections in excess of 60% from all-time highs, these events have happened before and do little to dampen the enthusiasm of most veterans in the blockchain space.

Possible outcomes for 2018 and beyond;

  1. Higher Prices for Bitcoin and Other Top Alts: Near the end of 2018 the entire cryptocurrency space may very well pass $1 Trillion dollars in total market capitalization. A more bearish scenario would require the market a couple years to consolidate, recover, and regain upward momentum. Watching Bitcoin drop back down to $5,000 – $6,000 before going back up to achieve new all time highs.
  2. Delisting of Many “Useless” Tokens on Exchanges: Exchanges have three likely options: A) delist “useless” non-utility tokens that do not carry out the function they claim, B) register with the SEC, or C) close their doors. This goes hand-in-hand with the SEC’s impending regulations. Exchanges are critical for providing liquidity in the markets. In an attempt to comply with these new regulations, exchanges will delist an increasing number of tokens, which lack a clear product or use-case. One such example is Metal’s delisting from Bittrex. This trend could continue with greater speed in the coming years. US exchanges that carry tokens that are deemed unregistered securities will find themselves in the SEC’s cross hairs. Registered investors should use a platform or entity registered with the SEC, such as a national securities exchange, alternative trading system (ATS), or broker-dealer. Companies that sold tokens that are deemed securities will likely be fined or worse.
  3. Higher Quality Entrepreneurs and Developers Go To Blockchain: Many are simply not convinced that blockchain technology has real uses but the tide is turning. Higher token prices mean more blockchain startups will make more highly competitive offers to developers vying for talent with the likes of Amazon, Google, Apple, and Facebook. Working on tokens and protocols will reshape the startup landscape in Silicon Valley and the rest of the world.
  4. The Shift Away from Ethereum to Other Platforms: More companies will realize the impractically expensive fees of Ethereum based protocols and consider alternatives. While building and deploying smart contracts on Ethereum’s Turing Complete platform gives a lot of room for expressivity, it comes at very high costs. Literally. Network congestion can make transferring data or executing smart contracts on Ethereum extremely expensive. Oftentimes the price of transferring data on Ethereum spikes well over $1.00 and growing network congestion makes this worse. If you were charged $1.00 or more every time you liked a comment on Facebook or shared a story on Snapchat, how long would you continuing using it? Scalability problems on Ethereum will push developers to consider building on other platforms like Stellar, NEO, and other DApp platforms.
  5. Central Banks Embrace Blockchain Technology: More government experimentation with blockchain will continue even in the presence of regulatory scrutiny. Central banks keen on reducing friction and lowering costs from antiquated processes will experiment with blockchain-based settlements. Blockchain integrations with central banks are on the horizon and will be a key development in 2018. As a result, foreign exchange markets and cross-border remittances will become more efficient and cheaper for people to use. These are the first steps towards a global cashless society.
  6. China’s Crypto-Prohibition Intensifies: When enough of the population wants something, it’s going to get what it wants. China is now implementing further restrictions on VPN providers to prevent capital outflows into ICOs, among other activities. The last thing they did was shutdown exchanges in the fall of last year. Ironically, these efforts only strengthen decentralization by encouraging P2P networks while diminishing centralized platforms like major exchanges
  7. The Rise of Decentralized Exchanges: Longer term, these efforts will also embolden the emergence of distributed technologies and decentralized exchanges like the Stellar Distributed Exchange and 0x Protocol.
  8. Declining ICO Success Rates: There will be many more ICOs that fail to hit hard caps or key product milestones. The few major ICOs that do occur will likely take the shape of long awaited reverse-ICOs (like Telegram,, Kodak, etc.) and attract the majority of capital in the pre-sale. Even though ICOs may hit their hard caps this will be done with higher prices for Bitcoin and Ethereum in 2018, so the total token raise will be much less when compared to past ICOs. A growing number of projects will also fail to deliver any tangible product that attains product market fit. The declining success rates will accelerate further because the SEC’s nebulous stance on ICOs finally comes to an end. Expect the SEC to introduce concrete guidelines and regulations for the space in 2018. In an effort to protect the influx of Main Street investors from fraud and market manipulation, most ICOs will be subject to the SEC’s guidelines because they have no product. The existential risk of freezing or shutting down exchanges exist. With this trend we will also see mainstream investor enthusiasm die down significantly.
  9. Taxes and Anti-Money Laundering Laws Will Be a Bigger Issue than Security Laws: The biggest elephant in the room is not the SEC; it’s the IRS and FinCEN. Accumulated tax liabilities will apply to ICOs past, present, and future and all US entities in the space. A few years ago the IRS deemed some cryptocurrencies to be property, which means every time crypto is used for sale or exchange it’s potentially a taxable event. The IRS has launched a John-Doe summons of Coinbase so now every transaction of $20,000 or more has to be reported. Beyond that, FinCEN recently said that companies selling tokens are money transmitters and must comply with relevant KYC/AML laws. Note, FinCEN fined Ripple years ago for operating an unlicensed money services business.
  10. Intense Promoter Scrutiny: This is less a prediction and more of a call to action. There are emerging self-proclaimed “YouTube experts” in the crypto space evangelizing high expectations of ROI for projects that they have undisclosed special private deals. This creates an environment where influencers can potentially harm Main Street investors with unqualified investment advice and/or manipulate markets with “pump and dump” schemes. Expect the Federal Trade Commission and other consumer protection agencies to take action against such promoters.

Many recent token projects have failed to hit their sales or fundraising goals. Spectacular crashes like BitConnect will become all too common. The landscape of market cap dominance will continue to shift away from Bitcoin. These trends will only strengthen in the years to come, especially as the SEC,IRS, FinCEN, and FTC come knocking at the door.

This year paves the way for greater due diligence in the space – both from community self-governance and regulators – perhaps just in time before the next wave of speculative fervour sets in. Ultimately, all of these predictions are needed to weed out “blockchain” companies and tokens that have no use. Like the dot-com bust of the early 2000’s, real companies – like Amazon, Google, eBay, or PayPal – will emerge through a crowded field of tulips.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Author: Cyrus S. Khajvandi
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Bear Market ‘Largely Over,’ Crypto Fund Manager Claims

Timothy Enneking, managing director of Crypto Asset Managment, LP, said Monday that the winter in cryptocurrency markets is “largely over.”

Crypto Asset Management, which was founded last year and has roughly $20 million in assets under management, saw its CAMCrypto30 cryptocurrency index fall by 69 percent since its high in January. Enneking sees four reasons for the collapse.

Asset consolidation, regulatory concerns, massive liquidation by the Mt. Gox trustee and startups’ selling crypto assets to pay salaries and expenses are all factors in the market’s overall decline, he wrote.

“Consolidation after the amazing 2017 increase” drew back some of the funds invested in cryptocurrencies, he said.

 Investors are also likely wary due to recent regulatory actions. While he did not cite any specific events, the report comes just weeks after the U.S. Securities and Exchange Commission subpoenaed startups with initial coin offerings.

It remains unclear what exactly the SEC is looking for, though an official confirmed “dozens” of investigations were underway.

The other two reasons likely had less of an impact, Enneking said.

These factors have mostly been priced into the cryptocurrency market already, which, despite the recent rout, is still up by over 600 percent in the last 15 months, he wrote.

Enneking also noted that bitcoin’s share of the overall cryptocurrency market has fallen from 45.7 percent on Dec. 20 to 44.3 percent. This decline in “BTC dominance” has coincided with a decline in correlation between bitcoin and other cryptocurrencies, he wrote.

While the note does not comment on what declining correlation means, it could indicate that the quality of individual cryptocurrencies is beginning to have a greater influence on their market prices.

The combination of these factors indicate that the market should begin rebounding soon, he indicated in his report.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Author: David Floyd  
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