As a fund recovery firm with a decade of experience and with over $19 million recovered so far, we at First Option Recovery are posing a question in front of you. Did you know that 97% of the crypto startups don’t have a working prototype and is simply a rip-off of an original one? There are many cryptocurrency scams that one doesn’t know about in another world.
It sounds fake, but it’s a hundred percent true. And why wouldn’t it be? Our team at First Option Recovery (all thanks to the 128+ attorneys that we are currently associated with and over 3000+ cases from which we have recovered funds), after months of research across all crypto domains in 22 countries, finally devised the stats that would be difficult to believe.
The crypto startup bubble, including the bitcoin bubble, is nothing but a stage where the play “Comedy of Errors” is being broadcast regularly. The persons who take part in the play are fake review sites, actors who ask their fans to invest in a particular cryptocurrency and a paid marketing team who keeps on publishing phoney news about how one can become rich quickly. It sounds funny because we at First Option Recovery act as the police and regularly bust all those cryptocurrency scams. Little do these guys know that once you invest the money, it might eventually lead to the guys running away with all your money at one go, and it will leave you with nothing but depression and despair.
One of the biggest cryptocurrency scams of all time, BitConnect, worked on similar levels where it labels as an “Ethereum Killer”. Significantly few investors were able to figure out BitConnect being a Ponzi scheme because of its multi-level marketing structure, high payouts and celebrity endorsements. The interest rate fluctuated wildly with the volatility of Bitcoin, which directly connects to its value. Despite the team of advisors at First Option Recovery already figuring out the fraudulent nature of Bitconnect way before, many investors still fell for it and lost their money.
Let’s look at some of the significant Cryptocurrency Scams across the globe.
The most common among the lot, Initial Coin Offerings, i.e. ICO’s being a part of quick fabrication due to the limited rules and regulations laid out to them because of the financial authorities’ leniency have been quite a hype for the last two years. Copying someone else’s whitepaper and working extremely hard on Multi-Level Marketing via social media impersonations and celeb endorsements, ICO’s are the scam to look out for in today’s financial world. Major players in the game include fake schemes like OneCoin, Plexcoin and Centra tech, the last one with endorsements by DJ Khaled himself raising $32 million before running away with the money.
If properly scrutinized, sure signs let one know about a fake ICO, such as a copied white paper, no definite road map, and the founders having no trace whatsoever in the crypto market. If the ICO’s members ask you to invest in a hurry, there is a high possibility of it being just another cryptocurrency scam.
Whenever a new ICO comes out, we at First Option Recovery start scrutinizing it from Day 1 itself. With the team of attorneys and legal advisors that we boast of, our detailed scrutiny process involves a lot of hard work and dedication. If fraud is detected, it immediately adds up to our portfolio of cryptocurrency scams already present on our site.
FAKE CRYPTO WALLETS
If you want to store your crypto, you need to take a wallet’s help, be it a hardware wallet or an e-wallet. The majority of the investors choose an e-wallet over a hardware wallet, primarily because of its low fees and durability.
Unfortunately, many crypto wallets that you see on the Play Store and App Store are fake ones that aim to steal your private crypto key and rip you off your money. It is highly advisable to research the wallets and know about their ins and outs before adding your money to them. It’s always best to seek help from professional firms like First Option Recovery who have dealt with such stuff for quite some time.
Google has banned many wallets from its Play Store, but many remain in the hood despite that. Apple has officially banned apps from its app store, helping in mining cryptocurrencies. Fake wallets, however, are still available.
Remember when our teacher used to give us homework and we hated doing it. However, the requirements are reverse while deciding to invest your money in some crypto exchange. Digital currency exchanges have multiplied in number over the past few years, giving rise to many shady ones in the lot.
If one wants to figure out whether an exchange is genuine or not, it is highly suggestive that you do a thorough quality check on the website. Some precautions include verifying the requirements and withdrawal methods, the websites’ security status, terms and conditions, and proper office address and founder details.
Be it a direct trading exchange, a complete all in one trading platform or via brokers, it is essential to follow the above steps if you want to save your hard-earned money.
Binance, Coinbase and Kraken are some of the legitimate ones. Log in to First Option Recovery to find out whether a crypto exchange is legit or not. Our portfolio already has a vast list of real and fake ones.
The Ponzi Scheme stands after the famous Italian fraudster Charles Ponzi, who successfully duped Americans of thousands of dollars using his fake money-making system. Mr Ponzi, using his wit and panache, paid older investors with the money that he collected from newer investors. The scheme, laid out by Ponzi, is still relevant in today’s time.
With the Pyramid Scheme mechanism itself, the older investors get newer investors to invest in the scheme and pay the returns for the first few months. Then comes the twist, where the new investors are misled by saying that you need to reinvest and find new joiners to receive a further commission. This procedure goes on and on until they get caught. However, by then, the scammer flees with all the money.
Although easy to spot, naive investors are still falling for it. Often dubbed as the crypto pyramid, the scheme is often labelled “risk-free” with a high guaranteed investment return. It is highly advisable to improve your investment knowledge before investing in any such strategies in preventing such schemes.
WHAT TO DO WHEN YOU LOSE MONEY IN CRYPTOCURRENCY SCAMS?
Cryptocurrency Scams being rampant in the industry. Scammers have been devising newer scamming methods every day. Now the point is, what should one do when their money is lost. There are ways to deal with it, like filing a complaint to the regulatory authority or negotiating with the broker. However, the most fruitful of the lot is to contact us at First Option Recovery.
Our firm dedicates the best in class solutions of fund recovery (including crypto recovery) and our expertise, experience, and professionalism. We pride ourselves on letting you know that we have a team of 128+ attorneys, a decade of experience and a track record of over 3000+ cases with over $19 million recovered. Do contact us with your query if you have been scammed by any broker when it comes to crypto scams, forex scams or any kind of binary options scams by filling up our contact form, and we will get back to you at the earliest.