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EU Agencies To Clamp Down On Cross-Border Crypto Scammers

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EU Agencies To Clamp Down On Cross-Border Crypto Scammers

European Union law enforcement agencies have joined forces to crack down on notorious cross-border crypto scammers.

Eurojust and Europol have been working with Bulgaria, Germany, Cyprus, and Serbia to catch online investment fraudsters since July 2022.

Latest reports revealed that the scammers have changed their strategies and started to defraud unsuspecting crypto investors trying to recover from year-long losses.

Europol Uncovers Millions Of Euros Worth Of Losses To Crypto Scams

Eurojust and Europol are working with digital businesses to stop European crypto scams. During their investigation, they exposed a criminal group that operates from call centers. The report revealed that German investors lost over $2.1 million to these online crypto scams.

According to Europol, the scammers beguiled victims from different countries to invest in fake digital asset investment schemes and rob them of their funds. This problem led to a joint operational task force for cross-border investigations within the EU.

Europol said the scammers operated from four call centers in Europe. They lure their victims by offering high profits on small investments. The lucrative profits motivate the victims to invest more funds, with which the scammers disappear. Given the number of unreported cases, Europol suspects the loss could be in hundreds of millions of euros.

The agency questioned 261 individuals (two in Cyprus, two in Bulgaria, three in Germany, and 214 in Serbia) and searched 22 locations within the EU during the investigation. They arrested 30 individuals and seized hardware wallets, vehicles, cash, documents, and electronic equipment.

More Proactive Measures As Losses To Crypto Scams And Hacks Increase

There has been an increasing rate of scam operations impersonating top businesses and government authorities in the digital asset industry. Recent reports revealed that scammers are posing as government officials to exploit vulnerable individuals looking for means to recover lost funds after the FTX crisis.

Oregon Division of Financial Regulation (DFR) issued a press release warning crypto traders against face websites and applications aimed to snatch money from them. In addition, the DFR advised traders to conduct proper research before sending funds to crypto trading platforms. The agency cited a website claiming ownership by the United States Department of State as an example.

According to the DFR, the site claimed to be helping FTX customers recover their funds. With its claims, the website accessed investors’ usernames and passwords. Therefore, the DFR Administrator, T. K. Keen, urged crypto traders to protect their information diligently and not release sensitive data without conducting research.

Meanwhile, a December 26 report revealed the court sentenced executives involved in a South Korean digital asset exchange fraud to eight years in prison.

The officials participated in a $1.5 billion fraud that defrauded 50,000 investors, promising them 300% returns on investment. Six executives received their sentence, while three pleaded not guilty to some charges and would face the court soon.

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Immunefi, a bug bounty, and security service platform, recently reported that the crypto industry lost $3.9 billion to scams in 2022.

CEO of Immunefi, Mitchell Amador, advised that proactive identification and addressing vulnerabilities would help protect the community and restore trust among investors.


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BitPay Announces Partnership With MoonPay – Bitcoin Magazine

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Bitcoin And Artificial Intelligence Frees Your Time - Bitcoin Magazine


BitPay and MoonPay, leading bitcoin and cryptocurrency payments infrastructure providers, have partnered “to provide BitPay users with significantly increased ways to buy cryptocurrency instantly, and at great rates.”

“BitPay’s unique marketplace experience also presents multiple rates for buyers, ensuring they receive the best possible price for their cryptocurrency purchases,” the press release states. “Additional benefits of the integration include fast delivery to any owned wallet address, as well as the ability for buyers to pay with their preferred method, including credit card, debit card, Apple Pay, Google Pay or a variety of local bank transfer methods.”


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Why Real Regulatory Change In Crypto Has Not Happened

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Why Real Regulatory Change In Crypto Has Not Happened



Legislators need to educate themselves on Web3 if they care about protecting consumers, Steven Eisenhauer, chief risk and compliance officer at Ramp, writes.


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South Korea to deploy cryptocurrency tracking system in 2023

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South Korea to deploy cryptocurrency tracking system in 2023


The Ministry of Justice in South Korea announced plans to introduce a crypto-tracking system to counter money laundering initiatives and recover funds linked to criminal activities.

The “Virtual Currency Tracking System” will be used to monitor transaction history, extract information related to transactions and check the source of funds before and after remittance, according to local media outlet khgames.

While the system is slated to be deployed in the first half of 2023, the South Korean ministry shared plans to develop an independent tracking and analysis system in the second half of the year. A rough translation of the ministry’s statement reads:

“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”

The South Korean police previously established an agreement with five local crypto exchanges to cooperate in criminal investigations and ultimately create a safe trading environment for crypto investors.

Related: South Korean prosecutors request arrest warrant for Bithumb owner: Report

The South Korean Supreme Court ruled that crypto exchange Bithumb must pay damages to investors over a 1.5-hour service outage on Nov. 12, 2017.

The finalized ruling from the supreme court ordered damages ranging from as little as $6 to around $6,400 be paid to the 132 investors involved.

“The burden or the cost of technological failures should be shouldered by the service operator, not [the] service users who pay commission for the service,” the court stated.


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