Daily fraud update: 25th March

Chris Lee

Blockchain firm announces new partnership

A leading firm in the blockchain analytics space has announced that it will work alongside an exchange to develop its new compliance and KYC processes.

Chainalysis, which is known for being a major blockchain security firm, said that it would work alongside the peer to peer firm Paxful.

It is understood that Paxful will be making the most of Chainalysis’ tools, such as its so-called “know your transaction” – or KYT – devices.

It will also be using software tools which are known in the industry as “reactor” tools. These are usually used to investigate Bitcoin transactions which are deemed to be particularly risky for some reason.

The move marks the first time that Chainalysis, which is a well-known name in the crypto sphere, has paired up with an exchange-oriented platform.

In a statement provided to crypto news website The Block, Chainalysis confirmed that the relationship with Paxful was the first of its kind for the company.

“Paxful, which accounts for around 25% of all P2P cryptocurrency activity, is currently the only P2P exchange Chainalysis currently works with”, a spokesperson for the firm said.

“We are open to talking to other P2P exchanges”, it added.

Accused in crypto fraud scheme seek release over coronavirus 

Two men who are in jail over accusations that they ran a cryptocurrency Ponzi scheme have asked a court to release them from prison on the grounds that an outbreak of coronavirus might hit their jail.

Jobadiah Weeks and Matthew Goettsche have each gone ahead with a motion calling on the Essex County Correctional Facility in Newark in the US state of New Jersey to let them out.

The pair stand accused of running a scheme called BitClub Network between the years 2014 and 2019.

They supposedly operated a Ponzi scheme which was worth $722m in total.

Two others are also accused of crimes.

In total, the four are up against charges of conspiracy to sell unregistered securities.

Weeks and Goettsche in particular are also are charged with conspiracy to commit wire fraud.

According to a lawyer for Goettsche, Rodney Villazor, “it will be nearly impossible to stop its spread” when the coronavirus reaches the prison.

He claimed that “the risk to Mr. Goettsche’s health and safety grows with each day that he remains incarcerated” there.

A legal representative for Weeks said that the authorities in the area had “an exceptionally poor record of maintaining detainee health”.

“Given the noted risks of illness through inadequate food service and environmental safety at the Essex County Correctional Facility, a swift outbreak of COVID-19 at the facility is virtually inevitable”, the lawyer added.

This comes after a prison inspector discovered last year that the prison had a number of problems.

The report claimed, for example, that there were a number of hygiene problems including “’raw, spoiled, or expired’ meat, ‘raw chicken’, ‘expired and moldy bread’, and ‘hamburgers that were foul smelling and unrecognizable’”.


Chris Lee

Latest news

EUR/JPY nears 2020 highs – are the bulls ready to show?
Although it has shown itself to be a bit of a slow starter over the last few months, things appear to be beginning to heat up for the EUR/JPY. Read more
EUR/USD hits $1.18 following German sentiment survey
Despite seeing some positive gains on Monday following the posting of positive news regarding the details of a stimulus package and US labour market data, the USD has suffered a minor blow against the EUR as the economic situation stabilises in Europe. 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 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
5

    Forex Fraud Certified Brokers

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