Daily fraud update: 10th February

Chris Lee

US crypto payments service suspends bitcoin

A cryptocurrency payments service based in the US state of New Hampshire has removed bitcoin from its system.

In an unusual move, Anypay – which is based in the US state of New Hampshire – said that the world’s most famous cryptocurrency is “worthless for payments”.

Historically, bitcoin transactions were permanent once they had been placed.

However, this has changed in recent years, and it is now possible for bitcoin transactions to effectively be reversed, or “charged back”.

This is due to the “Replace By Fee” function.

According to Steven Zeiler, who is the co-founder of AnyPay, this makes bitcoin effectively useless.

It could, in theory, be used by dishonest customers who want to acquire goods and services before reversing the charge – but keeping the items.

In a filmed statement posted on the video sharing site YouTube, Zeiler described how he had had a “final revelation” about the issue.

“…BTC is indefinitely disabled and AnyPay will not support BTC payments going forward until further notice”, he added.

AnyPay is a growing platform, and Zeiler himself is a former employee of Ripple – the blockchain-powered payments service.

According to the firm’s website, it prioritises the needs of “crypto-spenders” when it comes to new merchants.

“By following the simple principle of letting crypto-spenders guide merchant adoption, Anypay has built personal relationships with hundreds of merchants on five continents and their dedicated user base”, it says.

Crypto fraud figures on the rise, says analysis

Analysis of the cryptocurrency fraud world has revealed that more than over $4bn worth of damage was done as a result of crime in the sector last year.

The analysis, which was carried out by Chainalysis in conjunction with US financial newspaper The Wall Street Journal, suggested that this was higher than the figures registered in both of the previous years put together.

In 2017 and 2018, the total figure in the end was $3bn combined.

The analysis also revealed some other trends about the dynamics of the crypto fraud world.

It suggested, for example, that 90% of stolen funds could be traced to merely six schemes.

The research, which was published in the Journal, also touched on specific cases.

One of these was the PlusToken scandal, which saw many people defrauded after committing cash to a Ponzi scheme which then took their money.

The article told the story of Seo Jin-ho, a man from South Korea who invested in the fraudulent scheme.

He was supposedly told by a colleague that he could make a return of 10% every single month.

Chainalysis, which is located in New York, often works with the Federal Bureau of Investigations (FBI) to monitor scams such as these.

It commented that Ponzi schemes such as the one used in the PlusToken scam were taking advantage of people’s lack of knowledge around crypto investments.

Chris Lee

Latest news

NZDUSD Daily – Bears back on the battlefield?
Written on 28/09/2020 by Theunis Kruger, FX Trainer at FXTM NZDUSD on the D1 time-frame was in an extended uptrend until the 18th of September when a higher top was recorded at 0. Read more
EUR/JPY Could Face 124.43 Next, 125.00 Level in Focus
The pair containing the single European currency and the Japanese yen has been in the spotlight for various reasons recently. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
#2 Your capital is at risk Founded: 2012 Global Forex Broker
Number One Broker
Best Trading App Visit broker
#3 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker

    Forex Fraud Certified Brokers

    City Index Logo
    LegacyFX Small Logo
    BlackBull Markets Small Logo
    FXTM Logo
    Exness Small Logo
    VantageFX Small Logo
    Oanda Small Logo
    Plus500 Small Logo
    OctaFX Logo
    Oinvest Small Logo
    IQ Option Logo
    XM Logo
    skilling logo
    ATFX Logo
    Forex.com Logo
    HYCM Logo