Commission Uncovers Massive Cryptocurrency Scam
Nigeria’s Economic and Financial Crimes Commission (EFCC) conducted a raid resulting in the arrest of 792 suspects involved in schemes known as crypto romance scams. The fraudsters convinced victims to invest in fake cryptocurrency projects, leading to significant financial losses.
Links to International Groups
EFCC spokesperson Wilson Uwujaren revealed that among those arrested were 148 Chinese nationals and 40 Filipino citizens. The scammers operated from a luxury building in Lagos, Nigeria’s commercial hub. Most of the victims were citizens of the United States and Europe.
During the raid, agents seized computers, mobile phones, and vehicles. Uwujaren stated that Nigerian fraudsters were recruited by international groups to target victims online using phishing techniques. Once the victims’ trust was gained, their information was handed over to foreign counterparts, who carried out the fraud.
Collaboration with International Partners
The EFCC announced it is working with international partners to identify potential links to organized crime. This collaboration aims to strengthen actions against similar fraudulent activities.
Another Case: Nigerian Scammer Defrauds Australians of $5 Million
The arrests follow a separate case involving Osang Otukpa, who allegedly defrauded 139 Australians of $5.04 million (8 million AUD) through a fraudulent cryptocurrency platform called Liquid Asset Group.
Otukpa reportedly used five different aliases and lured victims through social media. EFCC agents apprehended Otukpa on December 6, shortly after he landed at Murtala Mohammed International Airport in Lagos. According to reports, he will be charged once the investigation is complete.
Conclusion
The EFCC continues to intensify its efforts to combat cryptocurrency fraud, working closely with global partners to curb these illegal activities. The crackdown on 792 suspects and cases like Otukpa’s highlight Nigeria’s strengthened fight against financial crimes.

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Detectives from Scottsdale, in collaboration with U.S. Secret Service agents, arrested a man on December 11 for charges of theft, fraud, and money laundering. The suspect allegedly stole $300,000 worth of cryptocurrency from two unsuspecting passengers.
Fake Uber Driver as a Trap
According to Fox10 Phoenix, Nuruhussein Hussein pretended to be an Uber driver in Scottsdale, Arizona. The thefts reportedly occurred in March and October when Hussein lured victims waiting outside the W Hotel, posing as their ordered Uber ride.
First Incident: Hussein allegedly asked to borrow a passenger's phone, claiming his device was broken.Second Incident: He offered to resolve issues with the Uber app after the victim questioned why the app showed the driver hadn’t arrived yet.

Stealing Cryptocurrency from Coinbase
Hussein reportedly used the opportunity to access the victims' Coinbase accounts while holding their phones. The stolen cryptocurrency was transferred from phone to phone and moved to cold storage (offline wallets).
Court documents do not specify how Hussein knew the names of the passengers waiting for their Uber.
Threatening the Victims
When one victim grew suspicious, Hussein allegedly threatened them, saying: “Calm down, or something bad will happen.”
Arrest and Charges
Hussein was arrested by Scottsdale detectives and U.S. Secret Service agents on December 11. The judge set a $200,000 cash bond and ordered electronic monitoring if Hussein were to secure his release.
The court imposed restrictions, including:
No internet usage,No international travel, due to concerns that Hussein might destroy evidence or flee to Ethiopia, where he allegedly travels frequently.
Hussein is scheduled to appear in court again on December 18.
Rising Cases of Cryptocurrency Robberies
According to GitHub, there have been at least 19 cases of offline crypto thefts worldwide in the past year. This compares to 17 cases in 2023 and 32 in 2021.
One of the most notable incidents occurred in 2014, when an unknown attacker attempted to extort 1,000 bitcoins from computer scientist and cryptographer Hal Finney. At the time, the stolen amount was valued at $400,000.
Recent Case in Australia
In the latest recorded incident on December 3, thieves in Melbourne, Australia, crashed through a shopping center window and stole a Bitcoin ATM. Police later found the ATM pried open and burning in a park.

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Massive Data Breach Impacts Thousands of Clients
Byte Federal, one of the largest bitcoin ATM operators in the US, disclosed a security breach that may have affected up to 58,000 customers. The company, which operates 1,356 ATMs, revealed the incident more than a month after it occurred.
Details of the Security Breach
According to a report filed with the Maine Attorney General, the attack happened on September 30 but was discovered on November 18. An unknown attacker exploited a third-party software vulnerability to gain unauthorized access to client data.
The potentially exposed data includes personal identifiers such as names, dates of birth, addresses, phone numbers, Social Security numbers, and even user photographs. Byte Federal stated, however, that there is no evidence of misuse of this data.

Immediate Response by Byte Federal
Upon discovering the breach, the company promptly shut down its platform and implemented preventive security measures to protect its clients. Byte Federal urged all users to reset their passwords and updated its internal security protocols, including password management systems, tokens, and access keys.
Ongoing Forensic Investigation
With the support of an external cybersecurity team, Byte Federal has launched a comprehensive investigation into the cause and scope of the incident. The company also noted that legal investigations are underway, and customers may be required to verify their identity upon login.
Byte Federal's Market Presence
Byte Federal operates 4.3% of all bitcoin ATMs in the US, making it a significant player in the industry. However, the market leader is Bitcoin Depot, which manages over 8,100 cryptocurrency ATMs.

Rising Security Challenges in Bitcoin ATMs
Bitcoin ATMs are a popular method for exchanging fiat currencies for cryptocurrencies, but their increasing popularity brings new security risks. According to the Federal Trade Commission, fraud involving bitcoin ATMs has surged by over 1,000% since 2020. This incident underscores the importance of strengthening security measures in cryptocurrency services.

#Bitcoin❗ , #cryptofraud , #cybersecurity , #CryptoHack , #BTC☀

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The Australian financial regulator has announced that the alleged fraud took place just two months before Mine Digital's collapse in September 2022.
Fraud Charges for Stealing $1.5 Million
The former CEO of Australian cryptocurrency exchange Mine Digital, Grant Colthup, is facing fraud charges for allegedly stealing $1.47 million (2.2 million AUD) from a customer. The customer intended to exchange the money for bitcoin but never received the cryptocurrency.
Misuse of Funds for Other Purposes
According to a statement by the Australian Securities and Investments Commission (ASIC) on October 21, the customer paid $1.5 million to the parent company of Mine Digital, ACCE Australia. ASIC claims that Colthup used these funds to pay ACCE's debts, purchase cryptocurrency for other customers, or a combination of both.
Company Collapse and Creditors Seeking Compensation
This case is the latest in a series of accusations against the company since its collapse in September 2022. Creditors have been attempting to recover $16 million ever since.
Colthup was charged with fraud at a hearing in Ipswich, Queensland, Australia, and the case was adjourned until December 16. The charge is under Section 408C of the Queensland Criminal Code of 1899, which carries a maximum sentence of up to 20 years in prison.

Significant Bitcoin Price Fluctuations
At the time the customer attempted to purchase bitcoin, the cryptocurrency’s price ranged between $18,890 and $24,580, according to CoinGecko data. Given that bitcoin is currently trading around $67,460, the value of the bitcoin now could be between $4 million and $5.24 million.
Mine Digital’s Operations and Collapse
Mine Digital operated a cryptocurrency trading platform from May 2019 to September 2022, when it was forced into administration. Early investigations revealed that ACCE, the parent company, held only $20,000 in assets, far below the $16 million claimed by creditors.
Planned Lawsuit Against Colthup
In December 2022, Brad Tonks, a partner at PKF, was appointed as the liquidator of ACCE. According to the Australian Financial Review (AFR), PKF was preparing to sue Colthup in January 2023 to secure compensation for creditors seeking to recover the $16 million.
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Fraudsters stole $21.6 million from more than 40,000 investors to fund their lavish lifestyle, which allegedly included $100,000 spent on sex workers.
Five People Sentenced for Cryptocurrency Fraud
Five individuals have been sentenced to prison for their role in a cryptocurrency fraud scheme worth $21.6 million (€20 million). The stolen funds were reportedly spent on a shark tank, private jet rides, sex workers, and luxury cars.
The fraudsters obtained funds from around 40,000 investors through various investment schemes, including EXW Wallet and the EXW cryptocurrency token, according to a report by the Austrian news outlet Heute on October 23.
Sentences for the Fraudsters
Two of the defendants were sentenced to five years in prison, two received 30-month sentences, and one was sentenced to 18 months. Five others were acquitted, while several members of the group are still evading authorities.
The trial at the Klagenfurt Regional Court was the largest fraud trial in Austrian history, according to Heute. The sentences were handed down on October 23, following a two-month trial and more than 300 hours of hearings.
A Life Like a Hollywood Movie
The fraudsters lived a lavish lifestyle, hosting parties at some of Dubai's most luxurious clubs, traveling between cities on private jets, and even purchasing a shark tank for a villa in Bali, as reported by BehindMLM. Additionally, over $100,000 was spent on sex workers, according to a July 12 article by BehindMLM.

Cash Transported in Plastic Bags
The fraudulent operation was based in Dubai, but some of the stolen cash was transported to Austria, where many of the defendants originated. The funds were reportedly carried in plastic bags.
Austrian prosecutors charged eight individuals involved in the EXW fraud in September 2023, with several more charged in the following months. The lack of an extradition treaty between Austria and the United Arab Emirates complicated the prosecution, but some defendants voluntarily surrendered while others fled.
The EXW Fraudulent Investment Scheme
The EXW Wallet was launched in late 2019, promising daily returns on investments in EXW tokens ranging from 0.1% to 0.32%. However, the fraudulent scheme collapsed a few months later in 2020.
Some of the convicted individuals were also involved in promoting real estate projects and are under investigation for a separate cannabis-related fraud, where an estimated 17,000 victims were defrauded of $17.2 million (€16 million).
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Crypto scammers took control of the X account belonging to Truth Terminal founder Andy Ayrey, using it to promote a suspicious meme coin.
Fraudulent Promotion of the Infinite Backrooms Token
At the time of writing, the account remains under the control of the scammers, who managed to earn over $600,000 by promoting a token called Infinite Backrooms (IB). This token was named after an AI chatroom experiment that led to the creation of the AI-supported X account Truth Terminal. The hackers first announced the token in a mysterious post on October 29, sharing the slogan "mad dreams of the electric mind" along with the token’s contract address.

Rapid Rise and Fall of the Token
Unsuspecting investors rushed to buy the new cryptocurrency, pushing its market value to $25 million at its peak, according to data from Dexscreener. Shortly after, the scammers sold off 124.6 million IB tokens they had accumulated before the promotion, earning approximately $602,500. Consequently, the token's market capitalization dropped to less than $2.5 million once news spread that Ayrey's account had been compromised.
Ongoing Scam Promotions on X
The scammers continue to control the account, promoting additional projects, such as a Telegram group called "Solana Printers." They also promised a new token, offering an airdrop to anyone who shares and promotes their Telegram group, which had over 1,600 members at the time of publication.

Controversy Surrounding Truth Terminal and Ayrey
Andy Ayrey gained attention in the crypto community after his AI bot, "Truth Terminal," backed by the a16z fund, promoted a meme coin called Goatseus Maximus. This coin, created on the Pump.fun platform on the Solana network, reached a market capitalization of over $850 million, leading to listings on major exchanges like Binance. This success earned Truth Terminal and Ayrey a loyal following within the crypto space.
Rise of Scams on X Accounts
Attacks on X accounts to promote fraudulent tokens are becoming increasingly common in the crypto community. From celebrity accounts to prominent crypto projects, the recurring abuse highlights significant security issues and raises concerns about X’s ability to protect its users from targeted scams.
Although X has managed to restore some compromised accounts, this latest attack underscores the persistent security issues on the platform.

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Platforms Waves and Vires Finance defrauded users of an astonishing $500 million through manipulative schemes and deceptive actions, leading to extensive financial losses. Waves founder Sasha Ivanov utilized the stablecoin $USDN to artificially inflate the value of $WAVES, causing a market collapse and significant financial losses for users.

Market Manipulation: Assumption of User Debts and Losses for Alameda Research
Sasha Ivanov’s latest move involved taking over user debts, which further expanded the scandal. Even major investment firm Alameda Research suffered a $90 million loss, intensifying the seriousness of the situation.
Vires Finance and a Series of Rug Pulls
Operating since 2021 as a prominent lending platform on Waves, Vires Finance attracted investors with its yield farming opportunities and reached a peak of nearly $2 billion in capital. However, behind the scenes, Sasha was using the algorithmic stablecoin $USDN to manipulate the value of $WAVES.
This tactic involved taking loans in USDT/USDC, using $USDN as collateral, and artificially raising the price of $WAVES. Once investors noticed the manipulation, the price of $WAVES plummeted by 93%, resulting in a total loss of $500 million. Users desperately tried to recover their investments, but this was only the beginning of a series of fraudulent actions.
Further Manipulation and Withdrawal Restrictions
In another fraudulent step, Sasha proposed a management plan intended to liquidate short positions on $WAVES, forcing users to make additional deposits to avoid liquidation. Although the proposal was ultimately blocked, the damage was already done. Sasha continued to control liquidity, and the Ponzi-like scheme persisted.
Stablecoin Manipulations and Withdrawal Freezes
Even after this scandal, Sasha Ivanov did not relent. He devised further tactics, including the forced conversion of USDT/USDC to the unstable $USDN. Shortly thereafter, $USDN lost its peg, negatively impacting users who wanted to withdraw their funds. Sasha even introduced new markets that were vulnerable and dependent on his manipulations from the outset. Promises of liquidity and stability proved deceptive, leaving users with practically worthless assets.
"The Grand Finale": Assumption of Outstanding Debts and Additional Losses
In the final act of fraud, labeled “The Grand Finale,” Sasha Ivanov took on outstanding debts and seized valuable assets from users. This move also impacted Alameda Research, which lost $90 million, linking Sasha to further major controversies within the crypto world.

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South Korean police have uncovered a fraudulent organization that enticed investors into fake crypto investments. This group, operating as an investment advisory firm, caused significant losses and amassed hundreds of millions of dollars.
Massive Arrests and Investigation
The Anti-Corruption and Economic Crimes Investigation Unit from South Gyeonggi Province arrested a total of 215 individuals involved in this fraudulent quasi-investment company, according to Yonhap News. Out of these, 12 individuals, including a popular YouTuber known as "Mr. A," were taken into custody on fraud charges. This YouTuber allegedly had as many as 620,000 subscribers.
Fraudulent Scheme and Crypto Gains
According to reports, the group raised a total of 325.6 billion won (approximately $230 million) from 15,304 investors. Between December 2021 and March 2023, the group sold 28 different cryptocurrency assets. Six of these tokens were listed on foreign exchanges via brokers, while the remaining 22 tokens, which had no real value, originated from other entities.
Targeting Vulnerable Investors
Most of the investors were middle-aged and elderly, with some investing as much as 1.2 billion won (over $852,000). Mr. A acquired contact information of potential investors through YouTube ads that promised returns of up to 20 times the principal or a "chance to change one's fate," encouraging people to sell their assets to buy cryptocurrency.
Manipulation and Deception of Investors
The fraudulent firm also targeted those who had already suffered losses from previous investments, promising to compensate their losses with "high-potential" cryptocurrencies. To deceive investors further, the group even impersonated South Korea's financial regulatory service, collecting IDs with the promise of compensating losses. These IDs were later used to obtain loans.
Tracking and Seizing Assets
Police tracked the financial flows through 1,444 accounts used to sell fake tokens. Mr. A was eventually arrested in Australia after fleeing South Korea through Hong Kong and Singapore. Police seized 22 bitcoins (worth about $1.9 million) and an additional 47.8 billion won (around $34 million) in assets from the fraudulent group.

#SouthKorea , #Cryptoscam , #cryptofraud , #cybercrime , #CryptoNewss

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