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Businesses lost 7million dollars to scammers through Bitcoin

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Businesses lost 7million dollars to scammers through Bitcoin

As cryptocurrency becomes more popular, many people develop fraudulent means to extort money from innocent businesses that whish to invest into cryptocurrency!

Businesses lost 7million dollars to  scammers through Bitcoin

“The US Federal Bureau of Investigation (FBI) has  sighted a Pennsylvanian man for allegedly defrauding $7 million from prospective Bitcoin $BTC investors through an effectively fake “escrow” service.

Businesses lost 7million dollars to  scammers through Bitcoin

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Authorities say Barry Thompson (48), head of two cryptocurrency “businesses” collectively known as Volantis, fraudulently promised to minimize risk when purchasing large amounts of cryptocurrency.

Businesses lost 7million dollars to  scammers through Bitcoin

This was based on the notion that Volantis would act as a custodian for both sides of the transaction, but Thompson allegedly never intended to offer any escrow services at all.

Businesses lost 7million dollars to  scammers through Bitcoin

“Thompson allegedly thought no one would ask where their actual money went when they trusted him to invest in Bitcoin,” said FBI Assistant Director-in-Charge Sweeney.

Businesses lost 7million dollars to  scammers through Bitcoin

“Using phrases and terminology that the victim companies didn’t understand, he allegedly preyed on their ignorance of the emerging cryptocurrency,” added Sweeney.

Two victims, same ballsy Bitcoin plot

FBI investigators have claimed Thompson defrauded two companies in mid-2018, one for more than $3 million, and another for over $4 million.

Businesses lost 7million dollars to  scammers through Bitcoin

Thompson allegedly assured one company he had Bitcoin on-hand and that any money handed over could not be lost, saying “cash is with me, coin is with me.”

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Police also said he produced a fake account statement showing millions of dollars ready to be used to purchase Bitcoin, despite having already misappropriated thousands of dollars.

“After taking money and failing to provide any Bitcoin in return, Thompson lied for days about why the deal had not worked out and the location of [the] Bitcoin and money, which was never returned,” said the FBI.

In both cases, FBI agents claim Thompson sent millions of dollars intended to be used for acquiring Bitcoin to third parties, but never actually produced any.

“Thompson never provided any Bitcoin, nor did he return [the company’s] money,” they added. “Thompson also lied about the location of the Bitcoin and the reasons the transaction was not completed.”

Authorities have charged Thompson with two counts of commodities fraud (which carry maximum sentences of 10 years in prison), as well as two counts of wire fraud, each with a maximum sentence of 20 years.

So many forms of crypto fraud exit, from individuals to companies,  Telegram bots that claim to be bitcoin mines have also emerged recently, most of which are scams. In any case, it very necessary you take extra caution before you invest your hard earn money in to cryptocurrency!

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