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? In other world, there are a lot of cryptocurrency scams that one doesn’t know about.
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 really 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 on a regular basis. 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 fake news as to how one can become rich quickly over a short span of time. Sounds funny, owing to the fact that we at First Option Recovery end up acting as the police and bust all those cryptocurrency scams on a regular basis. Little do these guys know that once the money is invested, it might eventually lead to the guys running away with all your money at one go and you will be left with nothing but depression and despair.
One of the biggest cryptocurrency scams of all time, BitConnect worked on similar levels where it was labeled as an “Ethereum Killer”. Very few investors were able to figure out about BitConnect being a Ponzi scheme, because of its multi-level marketing structure, high payouts and celebrity endorsements. The interest rate fluctuated greatly with the volatility of Bitcoin, which was tied to its value. In spite of 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 major Cryptocurrency Scams across the globe.
The most common among the lot, Initial Coin Offerings i.e. ICO’s being a part of quick fabrication owing to the limited rules and regulations laid out to them because of the leniency of the financial authorities have been quite a hype for the last 2 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 Centratech, the last one being endorsed by DJ Khaled himself and raising $32 million before running away with the money.
If properly scrutinized, there are certain signs that let one know about a fake ICO such a copied white paper, no definite road map and the founders having no trace whatsoever in the crypto market. Also, if the ICO’s members are asking 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 and if a fraud is detected, it is immediately added to our portfolio of cryptocurrency scams that is already present on our site.
Fake Crypto Wallets
If you want to store your crypto, you need to take the help of a wallet, 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, a lot of 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 suggested to do your research about the wallets and get to know about its ins and outs before adding your money into it. Also, it’s always advised to take help from some professional firm like First Option Recovery who have been dealing with such stuff for quite some time now.
Google has banned a lot of wallets from its Play Store but in spite of that, a lot of them still remain in the hood. Apple has officially banned apps from its app store which help in mining cryptocurrencies. Fake wallets, however, are still available.
Remember the days where our teacher used to give us homework and we hated doing it. However, the reverse needs to be done 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 a lot of shady ones in the lot.
In order to find out whether an exchange is genuine or not, it is highly suggested to do a thorough quality check on the website. Some of them include verifying the requirements and withdrawal methods, the security status of the websites, 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 extremely 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. Just 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 the real and fake ones.
The Ponzi Scheme is named 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 mechanism of a Pyramid Scheme 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 told that in order to receive a further commission, you need to reinvest and also find new joiners. 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 labeled as “risk-free” with a high guaranteed return on investment. In order to save oneself from such schemes, it is highly advised to improve your investment knowledge before investing in any such schemes.
What to do when your money is lost in cryptocurrency scams?
Cryptocurrency Scams being rampant in the industry, scammers have been devising newer methods of scamming the victims every single day. Now the point is what should one do when his or her 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 is dedicated to providing the best in class solutions of fund recovery, (including crypto recovery) and with our expertise, experience, and professionalism we pride ourselves into 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.