Organized Fraud Schemes Hit Bitcoin Markets
Bitcoin’s campaign to become a trusted and reputable currency and payment system continues to be hampered by the security flaws that plague the markets operating on cryptocurrency.
While the real-money iGaming industry has its fair share of scams and frauds, there have also been instances when the Bitcoin casino market suffers huge blows from the shady gambling sites.
These flaws largely involve hacking attempts and stealing of bitcoins—activities that emphasize the weakness of a website or of a service’s security, but not of Bitcoin per se.
However, regardless of the improved security and caution exercised in the betting niche, bitcoiners who carefully choose which Bitcoin casino games to bet on may still not be completely protected from the possible threats and attacks that put their bitcoins in danger due to organized criminal acts.
The sudden—and mysterious—collapse of an alleged HK Bitcoin trading platform
Reports surfaced last month that MyCoin, a Hong Kong-based Bitcoin trading platform, allegedly took $387 million along with its disappearance from the trading scene.
Packaged as a venue for interested individuals to invest their money and watch it grow, the business succeeded in attracting numerous Chinese investors over time, especially after promises of a HK$1 million return and a Mercedes Benz car if more clients were referred to the investment program.
However, a number of signs began to surface, all hinting that the trading business may possibly be a Ponzi scheme.
About 30 MyCoin clients raised their concerns and planned to file complaints. Weeks after investors realized they became the victims of a scam, the Hong Kong police have started arresting suspected individuals connected to the fraudulent activity.
Five persons were recently arrested for alleged acts of collecting money from the victims and promoting the business. However, it is still unclear if the lost funds will still be recovered.
Incidents like this calls for investors willing to enter the Bitcoin market to be more vigilant, especially when large sums of money are involved.
Bitcoin users may experience less Trojan malware threats
Meanwhile, Bitcoin users like casino enthusiasts can breathe easier now that Symantec published a report stating that there are fewer cases of Trojan malware attacks now.
The decrease in the number of Trojans designed to steal bitcoins may be ambiguous as of now, but the collected data reveal that the spread of financial Trojans had dropped by more than 50% last year.