Tag: crypto scam
Pastor Charged with Cryptocurrency Scam
Washington-based Pastor Francier Obando Pinillo has been charged for his involvement in “Solano Fi,” a fraudulent cryptocurrency investment business that Pinillo claims “came to him in a dream.” A pastor in a church based in Pasco, Washington, Pinillo allegedly took advantage of his position to sway members of the congregation to invest in Solano Fi, defrauding over a thousand victims of millions of dollars in what he claimed was a “safe and guaranteed investment.” “Fraudulent investment schemes are not new, but cryptocurrency scams are a new way fraudsters take money from hardworking, honest people,” states US Attorney Vanessa Waldref. The landmark case illustrates how cryptocurrency scams have now become mainstream. Fraudulent cryptocurrency schemes have previously been viewed as the province of highly organized hostile nation-state-backed cybercriminals and shadowy ‘market makers”. But the Pinillo case illustrates how even relatively unskilled crooks are now capable of preying on the greed of unsuspecting investors.
Cryptocurrency Laundering Top Dog Arrested
Russian-Swedish native Roman Sterlingov has been sentenced to twelve years in prison for his alleged involvement in Bitcoin Fog, the longest-running cryptocurrency laundering service on the dark web. Sterlingov reportedly operated Bitcoin Fog for a decade and processed over 1.2 million Bitcoin, valued at approximately $400 million at the time of the transactions. Bitcoin Fog ran from 2011-2021 and quickly garnered a reputation among the dark web community as the “go-to” cryptocurrency “mixer” for cybercriminals looking to hide their illicit funds from law enforcement. Bitcoin Fog would pool the “dirty” cryptocurrency and redistribute it in order to make the funds untraceable. According to court documents, the cryptocurrency laundered was mainly derived from darknet marketplaces tied to illegal narcotics, identity theft, and child sexual abuse material.
‘Pig Butchering’ crypto-fraudsters net billions
‘Pig Butchering’, a new and particularly mean and ruthless form of cryptocurrency fraud that originated in China, has evolved into a global scourge. Sha zhu pan, which translates as “pig-butchering”, uses sophisticated fraudulent decentralized finance (DeFi) applications to bypass most of the defenses provided by mobile device vendors. WhatsApp is the preferred platform for targets outside China; Telegram is also used, as is Skype. According to cybersecurity firm Sophos: “Originating in China at the beginning of the COVID pandemic, ‘pig butchering’ scams have expanded globally ever since, becoming a multi-billion-dollar fraud phenomenon.”
SEC X Account Hacked to Push Bitcoin ETFs – January 10th
The Securities and Exchange Commission (SEC) confirmed through a spokesperson and social media announcements that the agency's X (formerly Twitter) account was compromised to promote Bitcoin ETFs. Bitcoin's value spiked to nearly $48k as a result of the false Tweet, despite being taken down just 30 minutes after being published.