fbpx

Daily fraud update: 19th December

ForexFraud

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.


ForexFraud

Latest news

Big week for GBP/USD: what’s on?
With a new foreign exchange trading week now getting underway, it’s a good time to look ahead and see what is happening in the markets. Read more
Bithumb chair in fraud allegations
Two men in South Korea are continuing a serious disagreement over which of them is responsible for an alleged fraud. 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
5
#2 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#3 Plus500 Logo80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Broker
Number One Broker
Best Trading App Visit broker
5
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
5
#5 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker
5

    Forex Fraud Certified Brokers

    XTB Logo
    Oanda Small Logo
    Forex.com Logo
    City Index Logo
    FXTM Logo
    iTrader Logo
    OctaFX Logo
    Oinvest Small Logo
    XM Logo
    skilling logo
    IQ Option Logo
    Swissquote logo
    Plus500 Small Logo
    VantageFX Small Logo
    Pepperstone
    LegacyFX Small Logo
    HYCM Logo
    Exness Small Logo