Daily fraud update: 19th December

Chris Lee

Respected investigator claims HitBTC is fraudulent

A well-known face on the crypto investigation scene has accused cryptocurrency exchange HitBTC of being a scam.

Richard Sanders, who works for CipherBlade, made a series of strongly-worded accusations against the controversial firm, including a suggestion that it is the “largest-scale criminally fraudulent entity” in the crypto sector.

He also said that the exchange is a “wolf in sheep’s clothing”.

HitBTC has been accused of creating false levels of volume and interest in its products and services.

Such an accusation was made in a report produced earlier this year by Bitwise, which flagged what the crypto press described as abnormalities.

However, the firm has struck back against the accusations, and in a statement, it defended its practices – and explained them away as simply the product of machine technology.

“HitBTC has managed to attract many institutional participants contributing to institutional (read mass) adoption and market efficiency”, it said.

“This, in turn, has resulted in different order size – order frequency relationship”, it explained.

“To many lacking sophistication and financial literacy, this does seem like an anomaly that these gifted individuals attempt to portray as manipulative trading practices while in fact, this does represent solely the client profile.

“Note that our overnight volumes are consistent with the day-trade pattern: unlike humans placing round digit orders and having to eat and sleep, machines don’t sleep and react consistently on emerging market patterns”, it added.

“Blockchain of Things” pays out to SEC

A cryptocurrency firm which was accused by a US regulator of failing to properly register its initial coin offering (ICO) has agreed to pay $250,000 in fines.

Blockchain of Things Inc., which raised almost $13m from an initial coin offering back in 2017, was told by the Securities and Exchange Commission (SEC) that it had not registered itself appropriately as a provider of securities.

The tokens, which were sold between 2017 and 2018, had the aim of increasing capital as part of the firm’s business plan.

Now, it will have to ensure that its tokens are listed properly as securities in order to continue to sell them.

In a document published on its website, the SEC provided further details about the accusations against the firm, which is also known as “BCOT”.

“BCOT raised more than $12 million worth of digital assets through its Offering”, it said.

“BCOT did not register its Offering pursuant to the federal securities law, nor did it qualify for an exemption to

the registration requirements.”

It also appeared to suggest that the firm supplied tokens abroad through the use of “foreign resellers”.

“There were no restrictions on the resale of these tokens to prevent their distribution to U.S. persons”, it said.

“Between January and May 2018, the Foreign Resellers raised more than $12million USD in BCOT Token sales, selling tokens to more than 1,380 individuals”, it added.


Chris Lee

Latest news

Be Wary of Phony Lawyers Pushing Fraudulent Forex Recovery Scams
Have you ever lost money because of a crooked forex broker? Have you regretted those losses until a nice lawyer called you on the phone and promised the recovery of your losses for no upfront fees? Hope does spring eternal in these situations, but, unfortunately, the lawyer is a phony. Read more
Cybercrime still on the rise – be wary of potential scams
While our attention may be drawn to the latest news regarding the COVID-19 pandemic or the Tokyo Olympic Games, cybercrime statistics continue to grow unabated in the shadows. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 ForexTB logoYour capital is at risk Founded: 2015 Global Forex & CFD Broker
Number One Broker
LOWEST FEES Visit broker
4.9
#3 Tickmill forex broker logoYour capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#5 Forex Broker Pepperstone LogoCFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9

    Forex Fraud Certified Brokers

    ATFX Logo
    Exness Small Logo
    XM Logo
    Forex.com Logo
    OctaFX Logo
    BlackBull Markets Logo
    City Index Logo
    Vantage FX logo
    LegacyFX Small Logo
    IC Markets Logo
    skilling logo
    Plus500 Small Logo
    AvaTrade logo
    Pepperstone
    FXTM Logo
    HYCM Logo