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Daily fraud update: 26th September

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Dogecoin named as one of most resilient against fraud

A somewhat surprising list of the most resilient cryptocurrencies in the face of fraud has been released.

While the research from analyst Kevin Rooke showed that Bitcoin was by far the most resilient against what is known as a “51% attack” with Ethereum not far behind, meme-based Dogecoin came in third.

A 51% attack is a term given to the hypothetical risk that just over half of blockchain technology could fall into the hands of those with sinister motivations.

Dogecoin is a meme-based cryptocurrency which is popular in Japan.

It is represented by an image of a shiba, a type of dog, and was first launched in 2013.

Rooke calculated the so-called “one hour attack” cost and worked out that while Bitcoin might have a high cost close to one million dollars, Dogecoin’s cost would be well under $100,000.

“Dogecoin is more resistant to a 51% attack than all cryptocurrencies not named Bitcoin or Ethereum”, he posted.

“Yes, Dogecoin, you read that right”, he added.

Warning from FSC over “fake” tokens

The Financial Services Commission (FSC) of offshore haven Mauritius has announced that a potentially fraudulent crypto Ponzi scheme is doing the rounds in the country.

It claims that investors may be being duped by the existence of tokens called “Cloud Token Mauritius” and “Cloud Token Indian Ocean and Africa”, which are accessible through a mobile phone app.

In a statement, the FSC highlighted the fact that these were not registered with it.

“The public is informed that Cloud Token Mauritius and Cloud Token Indian Ocean and Africa and/or any other individuals or representatives operating under these names are not and have not, at any point in time, been licensed and regulated by the FSC”, it said.

It went on to explain that the tokens may well be part of a multi-level marketing programme, which sees people attempting to recruit more people in an attempt to make cash.

“Multi-level marketing (MLM) programs are usually promoted through Internet advertising, company websites, social media, presentations, group meetings, conference calls, and brochures”, it said.

“In an MLM program, an individual typically gets paid for products or services that he/she and the distributors in his/her “downline” (i.e. participants that the individual recruits and their subsequent recruits) sell to others.”

Question marks raised over Satowallet

A cryptocurrency wallet based in Nigeria has been accused of carrying out an exit scam on its traders to the tune of $1 million.

The firm, which was set up in May 2017, was able to deal with a wide range of cryptocurrencies and became popular in the country.

However, a large amount of funds has now become inaccessible.

The firm’s CEO has said that the coins were lost due to technological problems, although there are claims on social media that it is in fact a scam.