HOODWINKED by SCAMMERS -ICO’s and Bogus Exchanges – Michael D Polak
Billions have been lost Worldwide through sophisticated scams. Have you ever been scammed?
Do not worry — You are not alone… Bitcoin Advisory Group is currently partnering with recovery law firms and specialist trace firms to help you fight back …
Our Story
We first encountered Bitcoin in the middle of 2017, prospering in the year end Bull run, and then subsequently losing a considerable amount on cryptocurrency ‘exit scams’ and in particular initial coin offerings or ICO’s in early 2018. However, we remain and surprisingly to some, extremely positive and hopeful for the future of digital money, blockchain, distributed ledger technology and in particular Bitcoin as a store of value.
Back to the drawing board, two years on, having forensically analysed most every aspect of Bitcoin and Cryptocurrency, adopting a security conscious approach, conducting deep, meaningful research across all past and present projects, keeping abreast of the major developments and leading players in this space. We are now ready, with a dedicated team in place, and strategically positioned to advise on fraud prevention and raising awareness on how to avoid being scammed.
Do Not Confuse Bitcoin with ICO’s
“Why support something that has been so costly”?… I hear you saying. Well, investing and making money in Bitcoin was completely separate and unrelated to then losing money by way of being scammed through fraudulent ICO’s. This is a very important point to consider as many fraudsters in order to gain trust, merge the two together, thus countenancing their deceptions.
What really prompted this blog was a chance meeting with a young person working in one of my favourite local cafés whom sadly admitted to having difficulty recovering monies invested in what clearly is a scam exchange. This got me thinking, that if someone with financial service expertise, working alongside clever financiers, whom in fairness, did offer their opinions and counsel prior to making any decisions, can be hoodwinked by extremely sophisticated bogus investments, ones so technologically and intrinsically believable, that will no doubt eventually go down in the historical ‘greatest scam’ journals. Then how many young people, like the aforementioned, with minimal financial knowledge, are still to this day buying into these projects and the dream of ‘get rich quick’ crypto schemes, being taken in and conned out of all of their money?… Worse still, using savings, or borrowing and maxing out credit cards to purchase tokens, placing their trust and funds unwittingly into exit scams.
Well, we know that the 18–35 age group are more familiar with bitcoin, than say 60 and older. So, the dastardly fraudsters have specifically targeted predominately a younger already captive audience.
A Word of Warning — “Exit Scams”
Statistically speaking, deferring to published data — 95% of initial coin offerings are out-and-out ‘exit scams’ and the rest, good intentioned garbage. Some took the money and quite literally ran.
A number to my amazement still active and covering their fraudulent intent by offering minimal services, semi working apps and keeping up appearances by way of upbeat marketing, delivering trustworthy-esque statements, weekly emails, talking of amazing progress with a smattering of loyalty bonuses thrown in and the odd competition.
One simple, but very important point to consider is do these companies or more often than not websites, actually have a working product, that actually functions in any way shape or form, the way in which was originally described in the promotional literature or white paper?…
Die With The Lie
The “Die with the lie” approach is clearly working, as if the scammers made money first time round and have not been stopped or brought to book by the authorities, they probably say “why not simply continue” under the very same illusion and guise until it really is time to exit and disappear.
The scams continue unabated, and extraordinary as it sounds, having communicated with CEO’s of such ICO’s that had raised tens of millions, then almost immediately announced with much regret that they have suffered a catastrophic loss of funds, coming out with the most bewildering, yet they insist legitimate of excuses. Sending funds to the wrong wallet (Ethereum) address, the SEC clamping down and obscurity in the US Securities law. Then almost immediately another announcement from the same ICO offering up bonuses to those still willing to back the project again and invest just a little more in a second fundraise with additional bonuses, in version 1.2. Really!!! As if they did not make enough on the first… Sounds impossible, but this actually happened and people bought back in to the very same lie.
Tokenomics
Tokenomics is a term used for the study of the emerging field of the design of cryptocurrency and related digital assets. Compelling especially when delivered and wrapped up nicely in a blindingly scientific ICO white paper. Sadly, this has also played a part and given scammers a technological hiding place as unless you are Einstein or a seasoned cyber punk with knowledge of code and someone with deep knowledge on this subject you stand the risk of (with all other factors considering) being fooled into thinking that these projects are truly legitimate.
Self-styled Cryptocurrency Rating Websites & YouTubers
As first stated, Billions have been lost Worldwide through hundreds and possibly thousands of highly sophisticated scams. One very important point to note is that in 2017 & 2018 these deceptions were very much aided and abetted by certain self-styled cryptocurrency rating websites, YouTubers and colourful, dubious Gurus, acting as third-party promoters, whom simply looked to profit by way of sizeable commissions and endorsement fees, aggressively marketing and promoting the ICO’s using social media to create a valid stamp of approval to anyone still not convinced.
Therein lies a tortuous argument and dilemma as in my opinion and still to be proved as of yet whether or not the aforementioned were complicit in the scams or simply going along with them due to benefiting financially by way of generous endorsement fees? As we delve ever deeper into our research, ever becoming more wiser, we are firmly of the opinion that most likely it is a combination of both. Svengali or bitcoin experts, you decide and time will certainly tell as there is enough developing evidence to show that most are cognizant, directly involved or linked in some way to the scams.
A Reluctance to Admitting Being Scammed and Defrauded
Most would be reluctant to admit they were scammed and defrauded to the tune of $200,000 US dollars in early 2018, by way of a cryptocurrency crowdfunding scheme.
Perhaps enthusiasm for this revolutionary technology took the better of reason and having a working knowledge of initial public offerings or stock market launches, on the face of it, everything seemed blockchain credible. However, in defence, not much in the financial service world had in recent years offered such genuine levels of excitement and interest as this innovative digital money called Bitcoin and the plethora of projects centred around blockchain and distributed ledger technology, invoking that adrenalin rush and keeping one awake till early hours. Entrepreneurial curiosity took the better and certainly an element of commercial greed, as the ability to multiply one’s initial investment by 10 times or even 20 times was a potent elixir. The technology and concepts were also extremely exciting, blindingly scientific, the white papers, websites and people behind the projects appeared on the face of it credible and we conducted what would be considered as adequate due diligence, research and checks, but still fell foul of what we now have uncovered as sophisticated scams operated by individuals with criminal intent.
Reporting to The Authorities
Our particular case was reported this to the UK Serious Crime Squad whom were already developing a significant file. We provided information about our research, findings and theories about the use of digital resources, such as social media and bogus websites. We managed to independently recover about 10% of the total loss, which took time, employing similar methods and techniques the fraudsters had used, this time against them. In reality the criminals have huge resources and can buy banking favours in certain dubious and questionable jurisdictions, notwithstanding enough money to administer and maintain their deceptions long term.
Positive Awareness for People Considering Bitcoin and Cryptocurrency
Since then we have worked tirelessly to uncover the truth and keep current on all of the latest companies, products and offerings. Bitcoin Advisory Group helps get the right message across, a vehicle for hopefully prevention, advising and creating a positive awareness for people considering investing in Bitcoin and Cryptocurrency and for those who have sadly already been defrauded.
Trusted Exchanges and Bitcoin Wallets
Valuable lessons have been learnt, we now work with a small group of trusted exchanges and Bitcoin wallet providers that operate legally and successfully. Only after stringently validating will we feel comfortable enough to endorse and recommend others.
Final Thought
Bitcoin, blockchain and distributed ledger technology are truly amazing and the future of digital money is set to continue growing globally ever stronger. Amongst all the heaps of rubble, there will appear a small cache of successful company projects that will know doubt last the test of time. Shame, that like the .com boom, some are using this historical moment to make a fast buck and illegally prosper.
Our losses have ironically made us stronger, adding an element of wisdom to our endeavours. We can now pool resource from clever seasoned people who can more than match the fraudsters with their insight, knowledge and intellect.
Michael D Polak is the founder of Tanden Charles International and Bitcoin Advisory Group
Digital Control Of Your Money
Contact us for a free consultation
+44 (0) 20 8798 3586
United Kingdom
enquiries@bitcoinadvisorygroup.co.uk
m.polak@tandencharles.com
Published at Sat, 14 Sep 2019 20:53:03 +0000
Bitcoin Pic Of The Moment
✅ This image from Marco Verch (trendingtopics) is available under Creative Commons 2.0. Please link to the original photo and the license. 📝 License for use outside of the Creative Commons is available by request.
By trendingtopics on 2019-03-25 14:04:02