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Kenyans Duped of Millions of Dollars in Cryptocurrency Ponzi Scheme

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When I first came across this news headlines, I have to admit I hid a chuckle. Talk about chickens coming home to roost. Kenyans being duped by a cryptocurrency Ponzi scam, was a sweet payback for all those times, when our parents and grandparents (AKA old people) were being scammed by fraudsters who claimed to be “Nigerian princes” who wanted to share their wealth, if only recipients would be kind enough to share their bank details.

In all seriousness, many Kenyan investors were left in shock, when it emerged that they had unwittingly put in their hard-earned money into a scheme that was all kinds of fraudulent. According to local media reports, a company called Velox 10, shut shop after duping millions of dollars from unsuspecting Kenyan investors.

Interestingly, while this may come as a shock to Kenyans, Indians are only too aware of these types of Ponzi scheme. In November, the Enforcement Directorate (ED) had discovered that a Bangalore-based company, Ambidant Marketing Pvt Ltd, involved in Islamic banking and halal investment, was allegedly running a Ponzi scheme.

At the time, the ED had said, “During the investigation, it came to the fore that the scheme run by the company is surely a potential Ponzi scheme. In view of the above, ED has written to the RBI (Reserve Bank of India) to have another look into the matter and protect the interest of the investors/depositors at large who are being duped in the name of Islamic banking/halal investment.”

Apparently, Velox 10 had lured investors by claiming to be a “bitcoin investment fund.” Richard Rocha, the founder of Velox 10, promised investors a daily profit of up to $4000. Investors got profits depending on the amount of “membership fee” they paid to the company.

A victim, Ester Muthoni had invested 3.2 million Kenyan shilling ($32000) and was promised to earn up to 50 percent profit on her investment. Velox 10 failed to deliver on their promise. Her efforts to get her money back bore no fruit, leading to her reporting the matter to police, according to local reports.

Source . crypto-news.in

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Japanese Cryptocurrency Exchanges Opening Twice More New Accounts Since March

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It’s no secret that the trading volumes of exchanges remain high in bull markets and low in bear markets. Traders across the world decrease their trading frequencies during bear markets, and increase them during bull markets. And a new report that came today seems to confirm the same theory once again. According to some recent reports published by Japanese media, the cryptocurrency exchanges in Japan have observed a 200% rise in the number of new accounts being opened with them over the course of last two months. This increase, as you can see, has coincided with the arrival of the bull run in cryptocurrency market. Clearly, the co-relation between cryptocurrency trading volumes and prices of cryptocurrencies is a strong one.

The report we’re talking about came from Cointelegraph Japan. They compiled their report based on the data collected from 3 trading platforms: CoincheckDMM Bitcoin and Bitpoint. Daily account openings on Bitpoint are thrice more in May than they were in March, and at DMM they’re 1.5 times more than they were in April. Coincheck has also seen an increase in new account openings since March, but its increase is not as significant as that of DMM and Bitpoint. However, collectively the number of new account openings on all these platforms are 2x more than they were about 2 months ago.

Coincheck’s PR team also provided some of the interesting inputs to Cointelegraph Japan. The company said that the highest jump in the number of new accounts being opened came recently on 14th of May. That day 7x more new accounts were registered in comparison to other days. To recall, May 14 is the day when Bitcoin shot up to $8,250.

Clearly, if the adoption of cryptocurrencies has to increase then their prices also have to stay high. These are not traditional currencies that must be priced lower in order to be mainstream, as people from the legacy finance field suggest. These are different things, meant to perform differently and be adopted differently.

Source.chepicap

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Russian Central Bank to Consider Gold-Backed Cryptocurrency

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Russia’s central bank will consider the use of a gold-backed cryptocurrency to facilitate international settlements, according to a Tass report.

Elvira Nabiullina, governor of the Bank of Russia, said Thursday that her institution is to review a proposal for the development of the cryptocurrency.

Nabiullina said at the nation’s lower house, or Duma:

“As for mutual settlements, we will consider, of course, [the] proposal on … a gold-backed cryptocurrency. But, in my opinion, it is more important to develop settlements in national currencies,” she said at the State Duma.

She added that fiat currency settlement systems within the Eurasian Economic Union are improving and have “good dynamics.”

The news is perhaps surprising, as Russia’s government has been famously anti-crypto in past years, moving to block foreign exchange platforms from the country in 2017 and even blocking media sites that covered the topic back in 2015. A minister once said that Russia would never make cryptocurrencies legal.

However, the nation has softened its stance somewhat in more years, with moves to legislate around cryptocurrency starting in 2017. A digital assets bill could be passed this current session of the Duma, TASS indicates.

According to today’s report, Nabiullina said that, while it may mull the use of the gold-backed cryptocurrency, the central bank is against the use of cryptocurrency in Russia’s monetary system.

“We do not see the possibility that cryptocurrencies could act as monetary surrogates. Definitely not in this part,” she said.

 

source:coindesk

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Cryptopia: New Zealand Court grants 10 extra working days to present its first liquidators report

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Cryptopia, the defunct New Zealand cryptocurrency exchange, announced that there was an update with regard to the first liquidation report. The exchange stated that the New Zealand Court grated the platform ten extra days to present the report, with the date now scheduled to 4th June 2019.

The exchange stated on its official Twitter handle,“The New Zealand Court has granted a 10 working day extension on the initial Cryptopia Ltd Liquidators report. It is now due on 4 June and will be available on the New Zealand Companies website when it is submitted”

Sean Crypto Phillips, a Twitter user stated,“I hope that the liquidators understand that the coins are funds held in trust, not general assets of Cryptopia, so should be returned in full and without conversion. Also, I will be interested in any news of recovery from amounts sent to Huobi, although my balance was intact.”

Currently, the exchange’s website continues to be under maintenance, with the site displaying the press release pertaining to the liquidation process. According to that announcement, the liquidation process is handled by David Ruscoe and Russell Moore, representatives of Grant Thornton.

The exchange had decided to take this path because of the security breach that occurred earlier this year in January. Notably, the exchange fell victim to two attacks with the hacker gaining control over all of its Ethereum funds. At present, “the liquidators are focusing on securing the assets for the benefit of all stakeholders.” The investigation conducted by Grant Thornton was reported to take months instead of weeks, with the first report set to be released in the coming month.

Aside from this, the exchange also made headlines when the attacker had started to move the stolen Ethereum funds to different wallets and exchanges, which includes Huobi and EtherDelta. Huobi, a leading centralized exchange, released a statement concerning this incident on its official social media handle. The platform stated that the stolen funds were automatically detected by its system, following which it was immediately frozen.

Source/ambcrypto

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