Already a well-known name in cryptocurrency, Sam Bankman-Fried made global headlines in November 2022 when his crypto exchange spectacularly imploded. 

FTX, the second largest crypto trading platform, and Alameda Research, a DeFi investment business also started by Sam Bankman-Friedman, declared bankruptcy amid reports about the way customer’s funds were being handled. 

Last month, the criminal trial of Bankman-Fried, for charges related to the exchange collapse, began in New York, bringing SBF right back into the spotlight. 

Now seems like a good time to remember the background of the one-time crypto wunderkind. 

## Sam Bankman Fried origin story 

Born in March 1992, SBF was seen as a digital asset prodigy, launching Alameda Research in 2017, aged just 25, and the FTX exchange two years later. 

He was born at Stamford University, where his parents, Joseph Bankman and Barbara Fried, were professors. His own education took place at California’s Crystal Springs Uplands School and Massachusetts Institute of Technology, which he graduated from with a degree in physics and a minor in maths in 2014. 

Before graduating, Sam Bankman Fried spent a summer interning at Jane Street Capital, where he traded ETFs. After leaving MIT, he returned to the firm, but three years later, in September 2017, SBF was on the move again, this time to the Centre for Effective Altruism (CEA) in California. 

In the same year, he and Tara MacAulay, also of CEA, launched Alameda Research, a quantitative trading firm. It made quite a stir with its arbitrage trading, which took advantage of the higher value of BTC in Japan than in the US, reportedly completing trades worth up to $25 million every day. 

On the back of his success, Sam Bankman Fried moved to Hong Kong in 2018. 

In mid-2019, the FTX exchange was opened, and it rapidly grew to become second only to [Binance](https://www.binance.com/en) as a crypto trading platform. 

## It all goes wrong 

In November 2022, Alameda Research and FTX filed for Chapter 11 bankruptcy. 

This came at a time when Sam Bankman Fried was still revered by many in DeFi, and he was, reportedly, the 60th richest person in the world, with a peak personal fortune of $26 billion. 

Based in the Bahamas, SBF was seen to use his wealth to support political campaigns in the US. 

After the [collapse of FTX](/news/article/ftx-bankrupt-who-to-blame), amid allegations of poor governance and mishandling of customer funds, Sam Bankman Fried was arrested in the Bahamas and [extradited to the US](/news/article/sbf-agrees-to-return-to-us-for-fraud-charges). 

In December 2022, eight criminal [charges were filed at the Southern District of New York Court](https://www.justice.gov/usao-sdny/pr/united-states-attorney-announces-charges-against-ftx-founder-samuel-bankman-fried), including allegations of wire fraud, securities fraud, money laundering, commodities fraud, and campaign finance law violations. 

Four further charges follow in early 2023. 

SBF was bailed to his parent’s home, but later remanded in custody due to allegations of attempts to tamper with witnesses. 

His trial finally got underway last month. 

## Views on regulation 

The collapse of FTX, one of the biggest names in crypto, raised serious questions around the need for regulating the industry, and led many jurisdictions to ramp up regulatory efforts. 

During the investigation, allegations around the management of both FTX and Alameda were made, including concerns about a lack of corporate governance, understanding of finances, and observation of the rules. 

SBF had spoken publicly about his views on crypto regulation, openly stating he has chosen to relocate FTX to the Bahamas due to what he termed a ‘friendly’ regulatory environment. 

During a conversation on Twitter (now X) in the same month FTX crashed, SBF described the appearance that his firms welcomed regulation and promoted the need for regulators in crypto as ‘just PR’ and not sincere. 

He claimed rules ‘don’t protect customers’ and make ‘everything worse’. He later attempted to clarify these statements, claiming he was referring to greenwashing, ESG (environment, social, and governance), and CSR (corporate social responsibility) being used instead of effective altruism. 

## “Complete failure of corporate controls” 

Among the most damning statements and allegations made in the wake of the collapse of Alameda Research and FTX were those from John J. Ray III. 

Ray, the man who oversaw the five-year bid to recover money for Enron creditors, took over as FTX CEO following the resignation of Sam Bankman Fried on 11 November, 2022. The firm filed for bankruptcy the same day. 

Later in the month, Ray, in a sworn declaration to the bankruptcy court, gave his assessment of Alameda and FTX. He said that 'never in my career' had he witnessed 'such a complete failure of corporate controls' or a 'complete absence of trustworthy financial information’. 

SBF had been due to testify to the House Financial Services Committee in December 2022. He was expected to claim FTX remained solvent, but he’d been ‘pressured' into declaring bankruptcy. He was also due to allege that those who had taken over running the firm were following the Enron precedent to earn high fees. 

Following his arrest, SBF did not appear before Congress. 

The Story of Sam Bankman-Fried 

Thodex was among the biggest cryptocurrency exchanges in Turkey. Unfortunately, the exchange suddenly disappeared during the start of the peak of the market in April 2021, when most cryptocurrencies began soaring to new price milestones. 

On Friday, 8 September, 2023, various [news outlets reported ](https://www.coindesk.com/policy/2023/09/08/11196-years-in-prison-for-faruk-ozer-ceo-of-collapsed-turkish-crypto-exchange-thodex/)that the Thodex exchange's founder, Faruk Fatih Özer, along with his brother Güven and sister Serap, had been given an 11,196-year, 10-month, and 15-day sentence. Also imposed were approximately $5 million in judicial fines. 

As one of the go-to exchanges during the first half of 2021 for many crypto traders in Turkey, more than 400,000 registered users of the Thodex platform suddenly found themselves unable to log into their accounts to access their deposits. 

The total amount locked on the Thodex platform was about $2 billion worth of cryptocurrencies. With many traders ushering out their concerns online and others filing criminal complaints against the exchange, Özer fled his home country of Turkey and hid in Albania. 

During the same month, [Turkish police detained](https://www.dailysabah.com/business/finance/turkey-seeks-crypto-boss-ozer-detains-dozens-in-alleged-2b-scam) more than 60 people across eight regions linked to the collapsed exchange. 

Additionally, detention warrants were issued for another 16 people connected to the Thodex trading platform. 

With this, a red notice was issued for his arrest and extradition. In August 2022, he was [arrested in Himare](https://www.reuters.com/world/fugitive-turkish-crypto-fraud-suspect-arrested-albania-resort-2022-08-30/), a southern resort area in Albania. 

In early April of this year, Özer was extradited to Turkey, with the Istanbul Airport Police Department taking custody of him. 

He arrived in Turkey with seven charges laid before him, which included laundering the total amount of money resulting from the collapse of the exchange and defrauding merchants, cooperative managers, company executives, and people by employing information systems as a tool of a credit institution or a bank. 

## Verdict on Thodex employees and partners  

Overall, the trial brought cases against 21 defendants, who faced a maximum of 40,564 years in prison. 

In addition to the jailing of Özer and his brother and sister, four senior employees of Thodex were jailed. Of the 21 defendants, 16 were acquitted. 

The collapse of cryptocurrency exchanges is not a recent development. Many of the trading platforms that made Statista's list of the biggest exchanges by 24-hour trading volume have disappeared due to cybercriminal activities. 

According to a news report by Bitcoin.com, about 42% of exchanges have failed since 2014. 

Many of them vanished without a trace. This means that thousands, if not millions, of traders who held digital assets with them have had to count their lost cryptocurrencies as bad debt. 

## How to avoid a Thodex-style loss of your crypto assets 

Agencies like the US SEC ([Securities and Exchange Commission](https://www.sec.gov/oiea/investor-alerts-and-bulletins/ia_fraudulentdigitalasset)) continue to publish Investor Alerts cautioning traders about fraudulent [crypto trading ](/news/article/is-crypto-regulated-across-the-globe)websites and digital assets. 

As a sign of caution, stay away from investments that promise guaranteed high investment returns, are offered by unlicensed sellers, use complicated language and jargon that is difficult to comprehend, pressure you to buy on the go, or make unsolicited offers. 

Irrespective of the annual percentage yields (APYs) they offer, they are likely to be scammers hiding behind the anonymous and private nature of the decentralized finance sector. 

So, stay alert and take advantage of platforms such as CERTIK, a tool that monitors and analyzes several protocols and projects related to the blockchain sector. 

More importantly, despite your quest to remain anonymous, try and patronize regulated trading platforms so that you may have a chance of recouping some, if not all, of your crypto assets should the exchange collapse. 

What's behind Thodex CEO's 11,196-year sentence? 

This article discusses the GateEx scam, which reportedly used different domains to run faux crypto exchanges. It explores how accurate the allegations are against GateEx and how you can protect your funds. 

Since its inception, the crypto market has been plagued by scammers using varying tactics to deceive investors and lure them into investing big in their projects. These include tactics like [pump and dump,](/news/article/how-to-spot-a-pump-and-dump) [rug pulling](/news/article/rug-pull-what-is-it), and artificial inflation to trick the investors. 

## What is the GateEx scam? 

GateEx is a crypto exchange that claims to offer users a secure platform to buy and sell crypto assets. Some sources report that it provides more than 400 cryptocurrency options, and you can trade them with a trading fee of 2%. 

However, it faces serious allegations of running a fraudulent scheme where investors have lost their funds. 

Multiple websites operate in the name of GateEx exchange. Some of the domains related to the exchange that you may come across are:  

Gateexpro.com. 
- Gateexin.com. 
- Gateexpro.xyz. 
- Gateex-o.com. 
- Gateex-i.com. 

Most of these websites are not accessible right now, and you may likely find other domains for the exchange. 

These websites propagate deceitful content that promises high returns for depositing crypto in the exchange. As soon as users create an account and deposit funds, they lose it all as it does not give any withdrawal option. 

## How does the GateEx scam work? 

The scammers behind the project pose as a [crypto trading exchange.](/news/article/best-crypto-exchange-uk-reddit) They entice the investors to deposit their digital assets into the firm to receive high returns through trades. However, all the assets that users deposit in the exchange go directly into the pockets of [scammers](https://www.scamwatcher.com/scam/view/580273?__cf_chl_tk=EKfOW0mfsWE4HKsAgGx9bwt8qD.NlAVMzWq1fAc9bZY-1692116864-0-gaNycGzNHXs). 

So, anyone who trusts the platform for trading crypto may lose all their assets.   

When you create an account on GateEx, and place some crypto in it to start trading, you will first see live trades with incredible profits. But when you try to withdraw assets, the platform will not allow it, and you lose your funds permanently. 

Reportedly, it is built so that depositing crypto shares your private keys with the platform. That's why they get access to your funds and can manage them easily.  

## GateEx scam: Questions on the platform's legitimacy 

Here are some of the questions that arise regarding the legitimacy: 

### Multiple inactive domains 

One of the most concerning things about the platform is that it operates with numerous domain names. All of these domains use similar deceitful tactics to lure investors. Plus, many of these domains are inactive, and new ones keep appearing to replace them. It suggests that the scammers shut down the website once they illicitly get funds from investors and continue creating new ones to lure more investors. 

### No withdrawal 

Another thing that makes the platform’s credibility dubious is that you cannot withdraw your crypto from it. Once you deposit the amount in a GateEx account, it gives scammers direct access to your funds, and they can transfer it to any other wallet without a trace. Therefore, the platform does not allow you to withdraw funds from your account. 

### Personal data breach 

Users who have been victims of this scam reported that they lost their assets and faced data breaches. The exchange requires your personal information for setting up the account. It includes details like your email, phone number, social security number, financial info, residential address, and others. Scammers can also manoeuvre the information and compromise your privacy. 

### No verifiable credentials 

Yet another thing that makes it dubious is that there is no source from where you can verify the platform’s claims. The number of cryptocurrencies, trading fees, and other features it offers are unclear. That’s why using the platform for [crypto trading](/news/article/simple-cryptocurrency-trading) could be highly risky.   

## GateEx scam: What to do to recover your funds? 

Here’s what you should do if you become a victim of the GateEx exchange scam.  

1. Firstly, you should immediately disengage yourself from any trading activity on the platform. 
2. Secondly, you need to collect as much information as possible about GateEx. 
3. Then look for the relevant authorities in your country who can assist you with financial fraud. You can report to the [ActionFraud](https://www.actionfraud.police.uk/) website if you are a UK citizen. 
4. If the authorities catch the scammers behind it, you may get a percentage of your funds back. However, there is no guarantee. 
5. Lastly, take all the precautionary measures, like checking your bank’s insurance policy and protecting all other financial accounts.

## Closing thoughts 

GateEx exchange is one ill-reputed trading platform in the crypto market that has scammed many investors. 

The platform claims to run a crypto exchange with more than 400 coin options and promises unrealistic investment gains. However, there is no resource to support these claims, and you will mostly find GateEx scam reports on the internet.  

The fraudulent actors behind the exchange use a range of domains to attract investors. After they collect the funds from investors, the website disappears, and they start selling the same services through another domain. 

What you need to know about the GateEx scam 

Cryptocurrency crime has become a common theme in a world where billions of pounds are exchanged using the possibilities of the internet aided by the power of [blockchain](/news/article/blockchain-based-fireblocks-explained) technology.  

In its latest report,[ Chainalysis](https://blog.chainalysis.com/reports/crypto-crime-midyear-2023-update-ransomware-scams/) revealed that illicit activities related to the use of [cryptocurrencies](/news/article/is-crypto-dead) amounted to $2.8 billion in the first half of 2023.  

While this was down 65% from the same period in 2022 (around $8 billion), crypto still playing a crucial role in child abuse material, fraud shops, scams, malware, ransomware attacks, and darknet markets is a cause of concern for all stakeholders of this sector.  

Although many analysts and industry experts have attributed the consistent rise of cryptocurrency crimes to its private nature, there is more to that assertion.  

In this article, we take an in-depth look at the essential factors that have led many people to use virtual currencies related to the decentralized finance ([DeFi](/news/article/what-is-a-defi-token)) economy. 

## Cryptocurrency crime: Why is it still present in 2023? 

The blockchain-powered economy shed 65% of its overall market capitalization in 2022 after opening the year on 1 January with a value of approximately $2.2 trillion and closing the year on 31 December with around $756 billion, data from [TradingView ](https://www.tradingview.com/markets/cryptocurrencies/global-charts/)showed.  

Within seven months, the market had rebounded, leading to a 54% rise in 2022’s close. As of 11:00 UTC on 13 July 2023, the total market capitalization of the industry was about $1.2 trillion.  

This rebound has been positively reflected in the price performance of mainstream coins such as Bitcoin (BTC), Ethereum (ETH), meme tokens like Pepe ([PEPE](/news/article/rare-pepes-collectible-memes)), and artificial intelligence (AI) and big data tokens such as SingularityNET (AGIX), Fetch.ai (FET), and the Graph (GRT) among others.  

Having seen the renewed interest in digital assets through the injection of liquidity (reflected in daily trading volume), cybercriminals have turned to crypto again due to the special features it continues to possess, in addition to other factors. 

Cryptocurrency crime is special for organized groups because of the following factors.  

- Pseudonymity and Anonymity – If you try to hold a bank account with any financial institution, there is a 100% chance that representatives of the organization will be asked for identification in the form of Know Your Client or Customer (KYC). With this, they verify the legal details of your full name, country, residential address, and source of funds. If you are supposed to receive funds through cross-border payments, transactions normally go through intermediaries (central banks, insurance companies, and clearinghouses) before they are credited to your account. This process is complex, slow, and does little for your privacy, although it is highly secure. Cryptocurrencies powered by cryptographic encryptions forgo all these processes and allow anyone, no matter where they are, to send and receive money over the internet at relatively lower fees. This is why it has gradually replaced cash as the go-to currency for illicit activities. 

- [Cryptocurrency On-Ramp and Off-Ramp](https://knowledgehub.transparency.org/helpdesk/cryptocurrencies-corruption-and-organised-crime-implications-of-the-growing-use-of-cryptocurrencies-in-enabling-illicit-finance-and-corruption) – When Satoshi Nakamoto created Bitcoin (BTC), it was extremely difficult for asset holders to convert them back to cash. This was because the much-needed technology was not available, and those who had access to it were highly tech-savvy. As BTC and other coins gain mainstream attention, with thousands currently accepted as payment methods by traditional institutions, many financial technology (Fintech) firms have added on-ramp and off-ramp innovations to support the centralized and decentralized finance economies. On-ramp is where cash (fiat money) is converted to crypto. This is mostly done by purchasing digital coins via ATMs, bank transfers, or cards. On-ramp is mostly patronized by traders and investors. Off-ramp is where cryptocurrency is converted into fiat currency. This can be done through Peer-to-Peer (P2P) cryptocurrency marketplaces such as Binance and withdrawing funds through an exchange. In many parts of the world where most people are underbanked or unbanked or face severe sanctions, P2P has become the way for most people to sell off their crypto for cash. Many telecommunications companies have created wallets independent of mainstream financial institutions. These can be used to gradually cash crypto obtained through unscrupulous dealings. 

- Lack of comprehensive global regulatory framework: The Markets-In Crypto Asset ([MiCA](https://www.consilium.europa.eu/en/press/press-releases/2023/05/16/digital-finance-council-adopts-new-rules-on-markets-in-crypto-assets-mica/#:~:text=This%20regulatory%20framework%20aims%20to,of%20the%20crypto-asset%20sector.)) regulation is scheduled to take effect in 2024. The European Union (EU) will introduce [MiCA](/news/article/mica-crypto-market) to preserve financial stability and protect investors while allowing for the positive sides of crypto in the form of innovation to thrive. While this will significantly limit cryptocurrency crimes, the laws would be exclusive to member countries. This means that VASPs (Virtual Asset Service Providers) would need to comply with certain rules and regulations that will go a long way to protect investor funds. Despite this, crypto transactions cannot be reversed, so once residents of the region are scammed, or a VASPs system is compromised through hacking, cybercriminals are still free to move some of the money around before enforcement sets in. Aside from the EU, agencies in the US and the UK have failed to come up with a real regulatory vehicle for stakeholders. Many crypto companies in the US have instead accused the SEC of operating on enforcement rather than compliance. With nobody taking responsibility, criminals continue to hack, scam, and launder billions of dollars annually.  
 
## Cryptocurrency crime mostly involves privacy coins  

[Bitcoin](/news/article/bitcoin-to-pounds), Monero ([XMR](/news/article/how-to-buy-monero)), and Zcash (ZEC) are mostly used to launder money globally. More than $40 billion has been laundered through ransomware and corrupt practices (bribes and embezzlement, among others) since 2017. 

The onus falls on regulatory bodies across the globe to draw up a unified regulatory document against cryptocurrency crime that can monitor large transactions moving from one wallet to the other.  

This way, cryptocurrency crime could be ameliorated and gradually eradicated from the blockchain-based economy. 

Why is Cryptocurrency Crime Still on the Rise?

In a fast-changing digital world, security professionals and developers find themselves in the muddy waters of cyber security, characterised by malicious attacks. Among many threats, Cross-Site Request Forgery (CSRF) is among the most defenseless. CSRF token has become helpful in preventing [cybersecurity attacks](/news/article/dingo-crypto-scam-says-security-firm). 

The CSRF token plays a pivotal role in web applications by controlling the risks associated with cross-site request forgery attacks. 

This article focuses on the CSRF token, its generation, benefits, purpose, and implementation to enhance protection against CSRF attacks. 

## What are CSRF attacks? 

CSRF attacks encompass unofficial requests performed on the victim's behalf by [hoodwinking them into unintentional actions](https://www.invicti.com/learn/cross-site-request-forgery-csrf/) on targeted websites. The attackers abuse the trust between a user's browser and a website to carry out such attacks. For example, the attacker might be interested in attacking the victim's email address, changing the [password, or making a fund transfer](https://crashtest-security.com/sensitive-data-exposure/). 

Through hoodwinking, the attacker might possess the full details of the account, including passwords and access control of every application in the version attacked, and alter the functionality to fit their motives. 

CSRF token was developed to address these [kinds of attacks](/news/article/crypto-scams-failing), protecting users from unsuspecting attackers. 

In the attacking process, critical conditions must be met, including a cookie-based session handling where an action encompasses several HTTP requests which solely rely on timed cookies to locate the requesting operator. There are no other means to track sessions or validate operator requests. 

The other condition is having a relevant action within the applications that the attackers strategically induce. This inducement can happen through modifying permissions for other users or the act of changing the operator's password. 

Another condition is a situation where there are no request parameters whose value the attacker might fail to trace. An example is when the attacker must know the importance of the available password to alter it to new security parameters. 

## What is a CSRF token? 

CSRF tokens, sometimes called anti-CSRF tokens or synchronized tokens, are a unique feature within the application forms adding [additional security layers](/news/article/blockchain-security-in-depth-analysis) to authorize the legitimacy of requests. 

The core function is to prevent unauthorized requests by verifying that they originated from the same site and within the same operator session. CSRF tokens are generated when the operator interacts with the web application associated with the running session. The token is then availed in the subsequent requests to ensure maximum authentication. 

## How is the CSRF token generated? 

First, CSRF tokens require unpredictability and uniqueness. Hence, it must be generated in several steps to make it unique. The most common ways of generating CSRF tokens include cryptographic hashing, random token generation, and session-based token generation. 

Developers incorporate the tokens into the web APIs, AJAX requests, and application forms to ensure a successful implementation. This integration provides a CSRF token accompanying each form filled to verify the servers. 

## Significance of CSRF token, best practice, and limitation 

The CSRF token's first benefit is preventing CSRF attacks. Including a CSRF token in every web-based form significantly reduces cases of CSRF attacks. This action happens when passwords are used as a unique identifier, making it difficult for attackers. 

The availability of CSRF tokens ensures session specificity and uniqueness, which enables extended security. Even if the attacker successfully accesses some information in a particular operator session, they can only access the system during that single session, making it impossible to access subsequent sessions since it requires new access. 

The token serves as a complement to the available security features because they have a defense-in-depth capacity. They contain the same site attributes and cookie flags that make them unique in providing security on website applications. 

CSRF tokens are easy to implement since integration to the existing website application is simple, giving it a unique feature to be accessed by all developers. 

Developers should strictly follow best practices to obtain the maximum benefits of the CSRF token, including regular token generation, proper transmission practices, and secure token storage. 

It is noteworthy that while the tokens are very efficient against CSRF attacks, they, too, have limitations, including inefficiency in timing attacks, token leakage, and impact on user experience. These limitations call for careful consideration during the implementation of CSRF tokens. 

## Conclusion 

CSRF tokens are essential in securing web applications from CSRF attacks. An extra layer to authenticate and verify website application processes enhances protection against such attacks. Developers and professionals in cyber security should prioritize the implementation of these tokens to provide an overall defense and improve cyber security. 

cybersecurity engineer typing with yellow filter

CSRF Token: A complete user guide 

CryptoZoo is an NFT-based game in which you can hatch virtual NFT eggs, breed hybrid animals, and play with them while earning yield in $ZOO, the project's native cryptocurrency. The NFT/crypto project was conceived by Logan Paul in August 2021. 

The world-famous [influencer](/news/article/cryptozoo-logan-paul-apologises-for-failure) introduced the project to the 4.5 million subscribers of his YouTube podcast, [Impaulsive](https://www.youtube.com/watch?v=rqrH7TbruZA&t=353s), as “a really fun game that makes you money". The project was well-received by NFT and gaming enthusiasts, with CryptoZoo NFTs ranking 7th on OpenSea in terms of total volume on 5 September, 2021. 

![Opensea top NFT list screenshot](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Screenshot_2023_06_28_at_11_08_12_a79b6ea0d6.png)

Unfortunately, the hype was short-lived. Nearly two years after announcing the ideation of CryptoZoo, Logan Paul has failed to deliver the game, despite supposedly investing a million dollars into making the game and hiring credible game developers, project managers, marketers, and artists. 

Investors are down by thousands and Logan Paul faces a lawsuit alleging fraud, breach of contract, and negligence. CryptoZoo is not the only instance of Logan Paul's failed dealings in the crypto space – Dink Doink and Liquid Marketplace are two failed projects he was strongly associated with. 

## The rise and fall of CryptoZoo (ZOO) 

CryptoZoo draws inspiration from Pokemon. If you combine the popularity of Pokemon as a brand, the billions Niantic has earned from Pokémon Go, the 2021 NFT boom, and the marketing pull of Logan Paul as an influencer, it is no surprise that investors looking for quick money bought into the idea. 

While Logan Paul does NOT have a glittering reputation, with several odd and somewhat deplorable past instances that come to mind, he is a brand and a half. 

He rose to fame as a video blogger, [was named the most famous influencer in the world in 2021](https://www.insider.com/most-famous-influencers-insider-data-logan-paul-pewdiepie-2021-2), and became a WWE wrestler in 2022, committing numerous notorious acts throughout his pompous journey. Logan Paul bought more than 100 NFTs worth over $2M in 2021 and created CryptoZoo in August of that year. 

The project's NFT collection was launched on 3 September, with 10,000 "Base Eggs" selling out within minutes! After scaling to 7th place in terms of total volume on OpenSea a few days later, the NFT collection failed to gather further momentum. The project's total sales volume is 2,930 ETH (over $5M currently), with a 2.5% creator fee. 

At the time of writing, [just 2,927 such NFTs exist, owned by 1,293 holders](https://www.nft-stats.com/collection/cryptozoo-co). The most expensive sale was $203.21 (Base Egg 119), with zero sales in the past week and very few sales in the past weeks and months. 

While statistics of the NFT collection look bad, the project’s native token, $ZOO, is where investors lost the most. 

![graph showing cryptozoo price on CoinGecko](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Screenshot_2023_06_28_at_11_08_32_1976d9c5f5.png)

$ZOO reached an all-time high of nearly $0.0005 on 26 August 2021 and fell spectacularly to just over $0.0000002 on 29 September 2021. This represents a HUGE loss for thousands of investors! Speaking to [TIME](https://time.com/), young Rueben Tauk invested over $100,000 in $ZOO in late 2021. 

His investment is nearly zero at the time of writing. Currently, $ZOO is trading at a paltry ~$0.0000008. It is not hard to believe that Logan Paul faces a lawsuit requesting class-action status from buyers into the project. 

## CryptoZoo Logan Paul: lawsuit details 

In February 2023, a lawsuit was filed against Logan Paul in an effort to bring justice to thousands of CryptoZoo investors is being spearheaded by attorney Tom Kherkher. 

The lawsuit reads that Logan Paul and Co. "made the business decision to forgo an expensive and time-consuming process to create a functional CryptoZoo game or support it, and instead deliberately undertook a scheme to defraud Plaintiff and other consumers". 

If the class-action status is granted, thousands of investors who are victims will be eligible to join. Before filing the lawsuit on 13 January, 2023, [Logan Paul said he would refund token holders ](https://www.youtube.com/watch?v=hAjggQvFc20&t=19s)at least $1.3M and complete the game (after being called out by Coffeezilla). 

It is yet to be seen what will happen – will he refund $ZOO holders and finish the game, or will the law take matters into its own hands? We at Moni Talks hope all investors are reimbursed. 


Pink Image of logan paul, founder of Crypto Zoo NFT game

Logan Paul CryptoZoo: Influencer’s project a scam? 

Since 2021, news has been circulating in the crypto market about the launch of the Amazon digital currency. 

Amazon Inc. is one of the leading American multinational firms known for its e-commerce and cloud computing services. Its entrance into the crypto market can be a game changer that may lead to various blockchain innovations. An Amazon token may compete with popular cryptocurrencies like Bitcoin and Ethereum.  

However, as of now, concrete information regarding its release date or presale still needs to be made available. If you have questions such as "Where and how can I buy Amazon crypto currency?" or "When will the coin be launched?" this article provides the answers you seek. 

## Can we expect an Amazon crypto currency to launch in 2023? 

For two years, the crypto market has been buzzing with many questions about the launch of a crypto coin project from the e-commerce behemoth. 

Many news outlets have reported that the company wants to introduce its own crypto. However, the company has [not confirmed anything yet](/news/article/amazon-cryptocurrency).  

The company has been mum so far. There is no official statement regarding the project's progress and when and if the company is releasing it. Therefore, it is highly unlikely to release the coin in 2023. 

Various analysts also dubbed the alleged AMZ crypto's presale a scam. Reportedly, fraudulent actors behind this project are tricking the investors into buying a fake asset to acquire their funds illegally. Therefore, proceeding with due diligence is advisable if you want to invest in the token. 

## Why are there rumours about an Amazon crypto currency launch? 

One might wonder why so many rumours surround the Amazon crypto coin presale. There are three main reasons behind it reflecting the company's interest in the blockchain and crypto industry. These include: 

### Job posting for a blockchain and digital currency expert 

The rumours of this launch started in 2021 when the firm showed interest in the crypto industry by posting a job ad. It was looking to hire a digital currency and blockchain expert to supervise its projects. However, the company did not mention the specifics of the project. 

The company offers managed blockchain services, and this job posting was probably related to it. Nonetheless, the scammers might have used this news to propagate the concept of the AMZ token. 

### Partnership with Avalanche 

Another reason that suggests the firm's engrossment with the industry is its partnership with [Ava Labs](https://medium.com/avalancheavax/ava-labs-and-aws-bring-scalable-blockchain-solutions-to-enterprises-and-governments-295040a34263). The Avalanche blockchain uses AWS tools to build several features for its DApp ecosystem. The e-commerce giant's alliance with the blockchain network is significant. 

It is another reason that people expected a crypto token from Amazon. However, the company so far has not confirmed whether it is working on a cryptocurrency or not. 

### Potential NFT marketplace 

Besides the AMZ token, several reports suggest that the company is planning to launch a non-fungible token (NFT) marketplace. [Yahoo Finance UK reported ](https://uk.finance.yahoo.com/news/amazon-launch-nft-marketplace-crypto-cryptocurrency-bitcoin-ethereum-web3-blockchain-112832271.html)on 7 March, 2023, that the company is looking to introduce an NFT marketplace in April. The report further claimed that the digital marketplace may include NFTs of clothing or other fashion accessories. 

Meanwhile, a renowned NFT collector, Moritz, also shared a detailed thread on Twitter regarding this digital marketplace. He maintained that "it is huge for Web3". 

Furthermore, he claimed that the marketplace will be easy to use and not require a deep understanding of blockchains or wallets. 

Nevertheless, as of writing, this news has yet to be confirmed by Amazon, and the Moritz thread acknowledged it.  

## Can Amazon step into the crypto market? 

The cryptocurrency market can offer various opportunities for a tech giant like Amazon. Here are some reasons why it may consider entering the market: 

- To create a more convenient method for customers to buy and sell cryptocurrencies. 

- To compete with other major retailers that are already accepting cryptocurrencies. 

- To generate new revenue streams from crypto trading and mining. 

- It may allow it to compete with other tech giants already involved with crypto. 

## Is AMZ coin really a scam? 

Our research suggests that AMZ coin is a potential scam project using Amazon's reputation to swindle money from investors. There is no particular source that suggests Amazon's affiliation with this project. There's also almost no information about the token on platforms like CoinMarketCap or Coingecko. Besides, Amazon’s silence on the matter creates further confusion. 

Nevertheless, the company's continued hiring of crypto-related talent and partnerships with blockchain firms suggests it is considering stepping into the crypto market. But, until the company itself does not confirm anything, it will remain a risky investment. 


Amazon crypto currency: Will it launch in 2023? 

Cryptocurrency has revolutionized how we think about money, and it's no surprise that scammers have been hopping on board. With cryptocurrencies, fraudsters can operate crypto scams with near anonymity and tap unsuspecting victims for large sums of money – faster than ever before. Despite the hype surrounding crypto investment opportunities, it's essential to remember that investing isn't without risk. 

If you're not careful when navigating this new international economy, then there's a strong chance you could become a victim of crypto scams. That's why understanding cryptocurrency is so essential – knowledge is power! 

Join us as we dive into common schemes criminals use against unwary crypto investors, how to identify potential traps ahead of time, and ways to protect yourself today! 

## What are crypto scams? 

Crypto scams are [increasingly prevalent.](https://time.com/personal-finance/article/popular-crypto-scams/) These scams often involve fraudulent schemes designed to trick individuals into buying fake or fraudulent cryptocurrency. It's essential to be aware of crypto scams as they can result in serious financial losses for those who fall victim to them. 

Common crypto scams include phishing, Ponzi schemes, and fake cryptocurrencies. By staying informed and cautious, you can protect yourself from falling victim to those who seek to take advantage of unsuspecting individuals in cryptocurrency. So be sure always to conduct thorough research and exercise caution before making any investments in the crypto space. 

## Common types of crypto scams 

As crypto continues to surge in popularity, so too do the number of scams that attempt to take advantage of unsuspecting investors. 

Phishing scams involve impersonating a legitimate company or individual to obtain personal information. 

Fake ICOs (initial coin offerings) make promises of huge returns on investment that never materialize. Ponzi schemes rely on new investors to pay existing investors, eventually collapsing when there are no longer enough new investors to sustain the scheme. 

Fake wallets or exchanges trick users into depositing money or crypto into a fraudulent account. 

By understanding the warning signs of these scams, investors can better protect themselves from falling victim. 

## How to protect yourself from crypto scams 

With the growth in crypto popularity has come [a surge of crypto scams](/news/article/isreal-crypto-scamming-network-targets-auusies). In 2022, more than $4 billion was estimated to have been lost to crypto scams. That is expected to rise in 2023. 

As the popularity of cryptocurrencies rises, so do opportunistic scammers looking to take advantage of unsuspecting investors. Protecting yourself from crypto scams can seem overwhelming, but it's crucial to safeguard your investments and financial information. 

An effective way to prevent scams is education. Familiarize yourself with common tactics scammers use, such as phishing emails or unsolicited investment offers. Additionally, research potential investments thoroughly before committing any funds. Ensure the company has a reputable history; don't hesitate to ask questions. 

Finally, be cautious of promises of high returns or quick profits. By staying informed and vigilant, you can protect yourself from scams and safely navigate the exciting world of cryptocurrency investment. 

## Red flags to look out for 

Navigating the cryptocurrency world can be daunting, especially for those new to the game. While many investors have made significant gains, exercising caution and vigilance is essential. 

There are several red flags that buyers and traders should look out for, such as scammers promising instant riches or unverified exchanges offering deals too good to be true. Researching potential investments thoroughly and utilizing reputable platforms is essential to avoid falling victim to fraudulent schemes. 

Individuals should be wary of investments that lack transparency or have anonymous developers with no established track record. By staying informed and aware of potential red flags, investors can adopt a proactive approach and safeguard their investments in the digital currency space. 

The world of cryptocurrency has become a money maker for many, but, unfortunately, the same opportunity has been used by scammers to perpetrate fraud. As demand for digital currencies grows, so does the number of fraudsters looking to exploit unsuspecting victims. 

## What if you become a victim? 

The cryptocurrency world can be exciting and risky, especially with the prevalence of scams. If you become a victim, there are essential steps to take. 

First, gather all evidence of the scam, including transactions, communications, and other documentation. Then, report the scam immediately to the relevant authorities, like the Securities and Exchange Commission. 

Contact your credit card company or bank to report fraudulent transactions and freeze your accounts if necessary. Remember to stay vigilant and educate yourself on the warning signs of crypto scams to prevent future incidents. 

## Resources available for victims 

It's important to know that if you've fallen victim to a crypto scam, resources are available to you. 

Some organizations can support and assist victims of crypto scams. The National Cyber-Forensics and Training Alliance is one such organization offering resources and guidance to victims. 

It's also important to be vigilant and educated about scams in the crypto world, so you can better protect yourself and your investments. Remember, help is available if you become a victim of a crypto scam. 

It is imperative to understand that [crypto scams are not always easy to spot](/news/article/infinox-forex-broker-scam-uncovered); however, with the proper information and understanding of the common types of crypto scams, how to protect yourself, and red flags to be aware of, your chances of becoming a victim can be reduced. 

Remember that awareness is key in protecting yourself from these increasingly sophisticated schemes, and finding ways to invest your hard-earned money wisely should always be at the forefront of your mind! 

It is essential to remember that crypto scams could rise in 2023. With the ever-growing popularity of cryptocurrencies, it is crucial to be aware of scams and always take precautions. 

Always check the service provider's legitimacy, research the project before investing, and never share your private keys or passwords with anyone. Lastly, stay informed about the latest news and developments in the crypto world to ensure you are not falling victim to a crypto scam. 

man coding crypto scam stock photo with red filter

Avoid becoming a victim of crypto scams 

Chances are, if you are well connected with crypto news and updates, you have been seeing a lot of Quantum AI on your timeline. 

According to Elon Musk, Quantum AI is the next big leap. So much so that he has decided to sideline his work with Twitter, SpaceX, and Tesla to dedicate time to this newfound technology that he apparently has been secretly developing for the last three years! 

What is more? Alphabet CEO Sundar Pichai has also been testing this technology for two years and already has some gains to boast about. 

If any of this sounds real to you, then you owe us a few bucks because we just saved you from getting scammed! 

## Background 

Quantum AI is a trading platform "allegedly" developed by Elon Musk and hyper-marketed as the next big leap in crypto trading through social media advertising campaigns by affiliate marketing. 

The trading platform claims that it is faster, stronger, and more secure than anything that has been put on the market yet. Perhaps more than anything, the boast of opening traders to earnings of more than $1,320 in less than five hours of trading and "erasing poverty" through this trading model is what gives it all away. 

## What even is the Quantum AI scam? 

Quantum AI is a trading platform that has been maliciously attacked by groups trying to create multiple fake Quantum AI alternatives under the same name. 

Unfortunately for the authentic and real Quantum AI, these alternatives use high-power affiliate marketing tactics to grab and retain customer attention. This has grossly tainted the market positioning of the real Quantum AI. 

Even at this moment, you would find tens of Google results on different types of Quantum AI under the same name, many for Google’s own [Quantum AI software](https://quantumai.google/) (which is legitimate, of course). 

## Why is this happening? 

We all know how much AI has emerged into the mainstream since the advent of OpenAI and Chatgpt. Everyone wants to learn more about machine learning and AI these days. 

Couple that with one of the highest-grossing branches of physics, "quantum physics", and combined, they offer an attractive soundbite to viewers. As a result, many marketers worldwide use such soundbites to get a higher number of clicks and more market relevance. 

As viewership and clicks increase in response to these marketing tactics, scammers catch a whiff of the traffic generated through this kind of nomenclature. As a result, you get a situation such as this, where every Tom, Dick, and Harry with no real knowledge and expertise in either AI or quantum physics can muster up a half-working trading platform and call it Quantum AI. 

## How were the Quantum AI scams so successful? 

A consumerist society with a strong appetite for soundbites failing to regulate new products/markets and make responsible financial decisions is all that scams such as these need to work and succeed. 

There are a number of tools that many of these scams employ to make themselves sound as legitimate as possible. 

- The influence factor - Quantum AI frauds have made use of deep fake technology and have also tampered with pre-existing video recordings of major business tycoons such as Elon Musk, Sundar Pichai, and countless others to make it look as if these celebrities are endorsing and marketing these scams as actual solutions to poverty. Since many people follow these influencers blindly, they do not thoroughly certify the credibility of these campaigns and end up buying into these scams, fueling the sentiment WITH them, and preparing the industry for disaster. 

- Usage of makeshift trading tools - Using tools such as Signaling Panels, Pivot Tables, TREND analysis software, and even MACDs, many of these fake trading platforms try to work very hard on their visuals so that they can look as appealing as possible to a trader. These tools suggest to a trader that the platform they are trading through is legitimate and uses appropriate protocols. 

- Riding on the back of trends - Changing legal frameworks, such as acceptance from the European Commission, is an example of new changes in the market that scams like the Quantum AI scam excel at juicing. They can convince the end trader that the recent support rendered to the industry is a proverbial testament to the idea that things will only improve in the market. This is done to put the trader under a false sense of security. As a result, many traders do not realize the scam they are being put into because they hope for good results.  

For more on how these scams work, you may find [scam crypto robots ](https://scamcryptorobots.com/quantum-ai-review-scam/) helpful. 

## How can you spot these scams? 

There are ways to hedge against these scams. 

- First, you can ensure that every product that comes your way goes through standardized scrutiny protocols, no matter who seems to be endorsing it. 

- Keep an eye out for click-bait action. Make sure your spider senses start tingling as soon as you read over-the-top statements in a product’s objective statement. 

- Look for licensing and some central certification. Even though most creative scams can source fraudulent certificates, this habit of due diligence should hedge you against most scams. 

- Learn how to read reviews. If reviews start to sound like scripted lines out of a TV advertisement, BOUNCE! 

- Ensure you install the appropriate malware safeguards on your computer/device. Most anti-malware software can read into a web address's lack of security protocols. They proceed to block ads and even block certain kinds of attacks on your IP address. 

- Lastly, do not be lured into the scam by payout claims. Your curiosity/greed can very much cause the end of your trading days. 

## Conclusion 

Despite employing so many safeguards, it is still extremely difficult to ensure you are good to go into the devious crypto world. 

These scams are the primary reason why once-active users/traders have started to leave the crypto umbrella. 

If scams like "Quantum AI" are not sufficiently hedged against, they could eat into the market completely and devoid the world of potential innovations that are still within scope. 

Having said that, these scams have been ridding the market of unsophisticated customers/traders, which might lessen the speed and likelihood of bubble creation in the crypto space. Here is a piece that [can offer deep insight](/news/article/crypto-scams-failing) into that. 

red image of man reading code on a computer

Quantum AI: Is That a Scam I Smell?

Financial markets are never free from fraudulent activities. Scammers use various tactics to lure investors and trick them into losing their money. One of its examples is the widely debated Infinox scam.

Apparently, Infinox Forex broker is a firm authorised and regulated by the FCA. However, it still faces allegations of running a scheme that made people lose large sums of money. So, what's the truth behind it?

## A prologue to the Infinox scam 

The Infinox scam story goes back to Christmas of 2019, when an Instagram influencer and self-proclaimed Forex trader was accused of scamming hundreds of investors. According to a [documentary by BBC journalist Mobeen Azhar](https://www.bbc.co.uk/bbcthree/article/1bee6bdc-9cc6-4415-84fc-6536ec31d46c), the scammer was a former biosciences student at the University of Plymouth.

The student, who was in his early twenties, was identified as Mr. Gurvz. He offered copy trading services on his Instagram account, with more than one million followers. He maintained a lavish lifestyle on social media and is known for roaming around Plymouth in his rose-gold Maserati.

Allegedly Mr. Gurvz promoted the Bahamas-based Infinox Forex broker to his followers. However, the firm crashed towards the end of 2019, and investors lost millions in GBP. 

## Who is Mr. Gurvz, and how is he connected to the Infinox scam?

The real name of [Mr. Gurvz](https://www.instagram.com/mr.gurvz/?hl=en) is Gurvin Singh Dyal, a resident of Plymouth. Gurvin shares his knowledge on Forex trading and other online money-making ways on the Instagram platform.

Gurvin also keeps his followers posted about his luxurious lifestyle. He regularly shares pictures of his fancy cars, stays at lavish hotels, branded accessories, and travel vlogs.

![scam.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/scam_6614cc5eb0.png)
 
[Source](https://www.instagram.com/p/Cf4VtrGo4_O/?igshid=YmMyMTA2M2Y%3D)

Mr. Gurvz belongs to a modest family and spent his childhood in Ilford, London. He dreamed of becoming a doctor, but because of his low A-level grades, he opted for biomedical science.

According to several Instagram posts, he struggled financially during his early years at university. That's why he took a course on online earning at the University of Plymouth. This started his journey towards becoming a Forex trader and later an affiliate marketer and drop shipping expert.

Gurvin Singh also launched his company, "GS3 Trades", through which he offered Forex copy trading services. He is also the CEO of the "Academy 2 Earn" platform, as per his Instagram bio. Through this platform, he offered various courses for online earnings, like affiliate marketing and dropshipping. 

Allegedly investors lost around £4 million in the Infinox scam
Allegedly, Mr. Gurvz also worked with the Bahamas-based Infinox broker and promoted its services through GS3 Trades. He encouraged his followers to invest in the platform and earn lucrative profits. His marketing prompted hundreds of people, including his close friends and family, to invest in the platform.

Initially, investors made great profits, but the platform suddenly halted withdrawals.

As per the BBC documentary, Jonathan, an investor who lost his funds, explained that Gurvin and his company restricted investors from withdrawing the money. 

He said, “Gurvin and his administrators were like, 'If you withdraw, we'll kick you off the system. It will close all the trades. It will make everything go south.'." This was communicated to investors via a WhatsApp group.

At the end of 2019, the Forex broker finally crashed. An estimate of the total losses of investors’ assets is around £4 million. 

## Is Infinox regulated by the FCA?

Gurvin maintained to his followers that the platform is regulated by the FCA (Financial Conduct Authority) in the UK. The FCA is [one of the strictest financial regulators](/news/article/uk-fca-explains-low-crypto-approval) in the world. However, the Infinox broker he promoted was in the Bahamas. That means people cannot claim compensation for their losses from the Financial Services Compensation Scheme or the Financial Ombudsman Services.

Following the allegations, the UK regulator also issued a [warning against Mr. Gurvz](https://metro.co.uk/2020/01/01/student-made-100000-month-investigation-scammer-11984016/) and his GS3 Trades. The FCA mentioned that the firm is unlicensed and that consumers should deal with it cautiously.

## Response from Mr. Gurvz to the scam allegations

After the FCA warning, the BBC published a four-part documentary named [Scam Land: Money, Mayhem, and Maseratis](https://www.bbc.co.uk/programmes/p09hbmxw). The documentary, released on BBC1, was based on Mobeen Azhar’s investigation. It accused Gurvin Singh Dyal of duping investors and covering the losses. 

Gurvin Singh responded to the FCA warning and the BBC documentary in a post on Instagram. He posted a lengthy note on his account with the caption, "you've seen the fabricated version; now here are the facts".
 
![.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/png_6549cb1c72)

[Source: Mr. Gurvz](https://www.instagram.com/p/CPbhx0JjRaS/?igshid=YmMyMTA2M2Y%3D)

Mr. Gurvz mentioned in the post that he was always willing to cooperate with the FCA over the issue and even contacted the regulators back on 9 January, 2020. 

On the Infinox scam matter, Gurvin said he was working as an affiliate marketer for the firm. He stated that he "identified affiliate marketing as a way to earn an income". He maintained that he was young at that time and wanted to support his education.

In addition, Mr, Gurvz also explained how he started working with the Infinox Forex broker. He disclosed that an Infinox employee (Tristan Jones) and an affiliate marketer (Mirko Notturno) contacted him to promote the firm. According to Mr. Gurvz, Infinox contacted him because of his financial background.  

Furthermore, Gurvin Singh maintained that he believed the firm was registered with the UK regulators. He stated that he attended meetings in the company's central London office, which was its registered address. This helped Infinox seem like a genuine and legitimate broker. 

Moreover, Mr. Gurvz upheld in his Instagram post that he “did not act dishonestly” toward his clients. According to him, he did take instructions from Infinox, but he did not handle clients’ funds. 
Gurvin Singh revealed that investors signed a direct contract with the Infinox brokerage. The agreement clearly outlined all the details regarding how and who would manage their assets.

Last year, Gurvin Singh Dyal also appeared in the [Anything Goes with James English](https://www.youtube.com/watch?v=M7xIdX1yBF8) podcast. He further clarified his stance on the Infinox scam scandal in the podcast. 

He mentioned in the podcast that several other affiliate marketers were promoting the company. But the company used his name as a scapegoat. He also shared how he rebuilt his reputation and what he has been doing to make money. 

## Infinox.com vs. Infinox.bs

Gurvin assured customers they would be dealing with the FCA-approved Forex broker, Infinox Capital. The right domain for the original site is Infinox.com. However, the link provided to the investors was related to a Bahamas offshore company with a Infinox.bs link.

After the crash, many investors asked questions from the UK-based brokerage. However, it has dismissed the allegations by saying that the firm is a ‘separate legal company’.

Anthony Stubbs, the CEO of the Bahamas Infinox Forex broker, holds Mr. Gurvz responsible for clients’ losses. However, he admitted that his firm was responsible for handling [copy trades](/news/article/best-tools-for-trading-crypto) for clients. 

Jay K. Mawji, the managing director of the UK-based firm, dismissed the allegations of the firm’s affiliation with either Mr. Gurvz or the Bahamanian brokerage. Mawji said that the Bahamian firm is a separate company and is not a part of his firm.

## Who's to blame for the £4 million loss?

This scam story is quite complicated, where all the parties have distanced themselves from the matter. However, [Metro.co.uk](https://metro.co.uk/2021/05/16/forex-broker-infinox-accused-of-helping-gurvin-singh-dupe-hundreds-out-of-4m-14587738/) reported that some victims noticed that the contract emails they received were sent by Infinox Capital. It also mentioned that investors would be engaging with both firms.

Moreover, the victims revealed that when Gurvin restricted clients from withdrawing the funds and dealt harshly with the ones who questioned the policy, Infinox employees did not intervene. It indicates that they were supporting Gurvin’s actions.

In addition, an affiliate marketer who worked for the firm in the same capacity as Mr. Gurvz alleged that Infinox was using the Bahamas firm to run illegal schemes. He said the company forced everyone to open accounts on the "Bahamas server". This would allow the company to exploit the Caribbean's lax trading policies and tax havens.

In the Bahamas, traders can use strategies that are 16x riskier than what is allowed in Britain. It also allows traders to make more profit. 
However, Infinox leveraged the Bahamas regulations, allowing them to continue trades even when clients lost their assets. If the company were operated in the UK under the FCA regulations, they would have to close the trades immediately after 50% losses.

Another thing that indicates the involvement of the UK-based company in the Infinox scam is the source of the company’s revenue. According to a [Metro.co.uk](https://metro.co.uk/2021/05/16/forex-broker-infinox-accused-of-helping-gurvin-singh-dupe-hundreds-out-of-4m-14587738/) report, the company generated £9 million in revenue in 2019, of which £1 million was earned through the Caribbean market.

## Bottom line

Infinox Capital is a British Forex broker that is authorised by FCA. In 2019, its name made headlines when investors lost around £4 million because of a scam. The company was allegedly running a dubious scheme through a Bahamas-based offshoot besides running an affiliate marketing program, which Infinox Capital has denied.

Affiliate marketers used their Instagram profiles to portray lavish lifestyles and promote the company's services. Meanwhile, relaxed Bahamian regulations allowed the firm to continue its illegal scheme.


Infinox logo over image of red scam warning

Infinox Forex Broker Scam Uncovered 

A network of crypto investment scammers operating in Israel is targeting Australians, investigations have revealed. It is an organised network that works as a call centre. The scammers used social media ads, showing lucrative profits to target potential victims.
 
## Authorities uncovered Israel crypto scammers

Authorities from four countries were involved in an investigation to uncover a global network of [cryptocurrency scammers](/news/article/crypto-scams-failing). The countries involved include Germany, Serbia, Bulgaria, and Cyprus. 
 
![Screenshot 2023-02-24 at 09.32.58.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Screenshot_2023_02_24_at_09_32_58_0494957298.png)

[Source](https://twitter.com/australian/status/1628877400556834816)

According to a The Australian report, the authorities raided four call centres in [Serbia](/news/article/do-kwon-hiding-in-serbia). In addition, they searched around 11 residential addresses, arrested 15 suspects, and officers recovered around $1.46 million worth of digital assets. The country is trying to strengthen its [crypto regulations](/news/article/australia-crypto-regulation). 

Further investigation revealed that the network was operating through Israel and the main targets for this network were Australians.
Inadequate investigations allowed scammers to target Aussies
The Australian report also disclosed that inadequate investigative measures for online fraud in the country have allowed scammers to target their citizens.

Australia is a wealthy country with no federal authority to prevent such scams, which gives an open chance of fraud and those intent on scamming victims.

IFW Global’s Senior Investigator, Mark Solomon, explained that, in general, Australians are "open-minded" and "friendly" people. That's why they are more open to online relationships. Hence, if bad actors use the right strategy, they can easily be persuaded.

Solomons also said Israeli crypto fraudsters spend the stolen money on their lavish lifestyles. He mentioned that these individuals are flying private jets, own fancy cars, and have investments in real estate.
Meanwhile, they maintain their lifestyle by "sucking" savings out of the Australian economy.

## Investment scams in Australia

In 2021, ACCC reported that citizens lost more than $2 billion through investment scams. According to [Scamwatch](https://www.scamwatch.gov.au/scam-statistics?scamid=all&date=2023), the country lost over $568.6 million through such scams. 


Israel Crypto Scamming Network Targets Aussies 

Dingo crypto has been marked as a scam [cryptocurrency](/news/article/what-is-future-of-cryptocurrency) by top cybersecurity firm [Check Point Research](https://cointelegraph.com/news/dingo-crypto-token-flagged-as-scam-over-99-transaction-fee-backdoor) after it found that a smart contract function which it identified as "setTaxFeePercent” can alter the buy and sell fees of a contract.
 
setTaxFeePercent is an essential part of the code behind the project's smart contract and can manipulate transaction fees, which could see owners of Dingo [crypto](/news/article/crypto-hacked-blockchain-bandit-active-again) withdraw up to 99% of transactions associated with the cryptocurrency when a buy or sell order is placed. 

A red alert has been triggered by Check Point Research because the project’s whitepaper clearly states that only a 10% fee will be charged for every transaction. 

According to the cybersecurity firm, an example of the use of the setTaxFeePercent was evident in the purchase of $26.89 worth of DINGO by one trader, which should have seen the person's wallet credited with 427 million tokens.

With the 99% withdrawal feature in place, the trader received 1% of the tokens, resulting in a total of $0.27 worth of Dingo tokens.

Like many shady projects, there is not much information about the development team behind the soaring crypto token. As of 6 February, the new token has spiked more than 70% since 30 January. It reached an all-time high (ATH) of [$0.000000006993](https://coinmarketcap.com/currencies/dingo-token-new/) on 5 February.

## Dingo token has negative reviews on CoinMarketCap
 
CoinMarketCap is one of the most patronized crypto tracking portals in the decentralized finance space. Many crypto stakeholders have highlighted the potential dangers of engaging with the token.

One user who goes by the name mile80 warned potential investors, "For those who have not seen the research on this so-called token, it is a scam. You buy and, without knowing, they take 99% of your money as per contract and give you only 1% worth of this scam token."

Another trader with the name akhilbasnotra24 had problems with the tokens swapping ability. He pointed out that potential traders and investors should "stay away from this shitcoin. 

Once bought, you won't be able to swap it back to another coin". 

There are many scam cryptocurrencies on the market today, so do your own due diligence before throwing money behind a digital currency in 2023.


green image of dingo crypto logo on green background

Dingo Crypto is a Scam Cybersecurity Firm Says 

According to a report by blockchain analysis firm Chainalysis, North Korea hackers stole $1.7 billion worth of crypto to fund the country's nuclear programme.

The [cryptocurrency](/news/article/what-is-future-of-cryptocurrency) industry faced a challenging year in 2022 because of harsh market conditions and a surge in crypto hacks. The Chainalysis reports says that two significant spikes in hacking activities were recorded in March and October, with losses of $732.4 million and $775.7 million, respectively. The latter became the biggest single month in history for crypto hacking, with 32 separate attacks.

## Record-breaking year for North Korean hackers

[Chainalysis](https://blog.chainalysis.com/reports/2022-biggest-year-ever-for-crypto-hacking/) reported that [North Korea](/news/article/north-korea-crypto-hacks-worth-1.2bn)-linked hackers stole an estimated $1.7 billion worth of cryptocurrency in 2022. Of this total, $1.1 billion was taken from DeFi protocols, marking a significant increase from the previous record of $429 million in 2021. The report reveals that North Korea, facing heavy sanctions, relies on crypto theft to fund its nuclear plans. The illicit funds represent a "sizeable chunk" of North Korea's economy, which generated $142 million in total exports in 2020.

Use of decentralized finance protocols and coin mixers
The Chainalysis report also highlighted that North Korea hackers often send stolen funds to other DeFi protocols, usually decentralized exchanges (DEXs), to swap for more liquid assets. These hacks often result in the theft of illiquid tokens not listed on centralized exchanges.

The firm has also noted that these hackers use coin mixers to launder stolen funds at a higher rate than other individuals or groups. [Tornado Cash](/news/article/tornado-cash-developer-detention) was a frequently used mixer, but following OFAC sanctions, the hackers have diversified their mixer usage, particularly in Q4 2022.

According to other experts, North Korea also launders stolen crypto via brokers in China and NFTs.

A new Bitcoin mixer, Sindbad, has recently emerged as a tool to launder stolen funds. North Korea-linked hackers were detected on the platform in December 2022, and from that period to January 2023, they sent 1,429.6 Bitcoin worth almost $24.2 million to the mixer.


red image of north korea with hands on laptop

North Korea Hackers Stole $1.7B of Crypto

A former Oxford University student has admitted crypto theft charges after stealing more than £2 million in cryptocurrency.

Wybo Wiersma, a 40-year-old computer genius who dropped out of a Ph.D. class at Oxford University, will serve [four and a half years in jail](https://serocu.police.uk/man-jailed-for-2m-cryptocurrency-theft/) after admitting he stole more than £2.1 million in cryptocurrency in a scam that affected over 100 people. The Dutchman created a bogus website – iotaseed.io – that would generate an 81-character 'seed' password for people interested in an online currency called Iota.

## Inserted a malicious code

A ‘seed’ refers to a private key consisting of 81 random characters that allow only the user to access their [crypto wallet](/news/article/best-crypto-wallet-uk-top-picks). However, Wiersma inserted a malicious code so that instead of random seeds, the system delivered predetermined ones that enabled him to access his victims' Iota crypto and unlawfully transfer them to his web of personal trading accounts. Wiersma programmed the site to appear on top of Google searches when victims searched for the phrase 'Iota seed generator'.

Prosecutor Julian Christopher KC revealed that the accused created the [scam](/news/article/crypto-scams-failing) iotaseed.io website between 2017 and 2018 and started transferring his victims’ cryptocurrency in early 2018. He would later set up four accounts with Bitfinex cryptocurrency exchange, where he would keep the stolen crypto funds. Bitfinex would become suspicious of the account’s activities and froze them, despite Wiersma working hard to convince them otherwise.

## Crypto theft due to greed and deception

Judge Michael Gledhill KC of Oxford Crown Court sent Wiersma to jail, noting that he abused his skills to steal, terming it dishonesty at the highest level and adding that he committed the offense of crypto theft due to greed and deception. The accused was due to stand trial in early March but pleaded guilty on the day the jury was supposed to be sworn in. Wiersma was first arrested in January 2019 but fled to his native Netherlands after being released on bail. He was extradited to England in April 2021 to face the law at Oxford Crown Court.

Noting that the investigation covering the crypto theft was complex as it involved more than 100 victims from different parts of the world, Detective Inspector Rob Bryant of the South East Regional Organized Crime Unit (SEROCU) stated that as Wiersma cools his heels in jail, SEROCU would try and ensure as much of the money they seized from his wallets is returned to the owners.


red image of Wybo Wiersma oxford student hacker

Oxford Ph.D. student jailed in £2M crypto theft scam

Ruja Ignatova, the infamous name placed on the FBI's Ten Most Wanted Fugitives List, has reappeared due to the listing of a luxury London penthouse flat bought by the crypto scammer, a [BBC](https://www.bbc.com/news/uk-england-london-64407723) report disclosed. 

Details of the £12.5 million listing were revealed as part of new transparency rules in the UK, which require owners of properties to be publicly displayed.

The "Crypto Queen" and her associates made off with around £3.2 billion (around $4 billion) from her [cryptocurrency](/news/article/what-is-future-of-cryptocurrency), OneCoin. The BBC estimates that investors from the UK alone lost more than £100 million.

UK authorities believe she is trying to facilitate the sale of her property from the shadows. The reappearance of the name Ruja Ignativa - who did so much harm to stakeholders in her fake cryptocurrency - has reignited hope that some lost funds could be recouped.

A former investor in OneCoin, Layla Begum, said her family lost more than £54,000 after she was persuaded by a friend to risk money on the emerging crypto project. She said that UK authorities could help British investors who lost money in OneCoin since the purchase of the London flat undoubtedly came from proceeds in the crypto scam.

## Reward for information on Ruja Ignatova

While UK prosecutors are trying to avoid proceeds of the sale going back to the coffers of the scammers, the FBI has placed an £80,600 ($100,000) bounty on the head of Ruja Ingatova. 

In 2019, a federal jury in New York found [Mark Scott](https://www.bbc.com/news/technology-50509299), a former lawyer with links to OneCoin, guilty of conspiracy to commit bank fraud and money laundering after helping route more than £300 million out of the US.

The brother of the Crypto Queen, Konstantin Ignatova, also pled guilty to the same charges.

The latest guilty plea came from [Sebastian Greenwood](/news/article/onecoin-scam-co-founder-admits-fraud), co-founder of the worthless cryptocurrency, in December when he admitted engaging in fraud and money laundering.


red image of ruja ignatova in front of onecoin logos

Has Ruja Ignatova, Crypto Queen, Reappeared? 

A prolific hacker famously known as the 'Blockchain Bandit' is believed to be on the move again after hacked crypto was moved.

Blockchain Bandit first gained popularity in 2015-16 after using a technique called "Ethercombing" to steal more than £70m in crypto from thousands of holders.

Six years after the infamous incident, the hacker has awakened. The huge amount of crypto hacked back then was moved from the Bandit's wallet last week.

This crypto hacking scandal was considered a programmatic theft because of the sheer amount of money involved. The hacker stole 51,000 ETH and 470 BTC, valued at £73 million today. The hacker is suspected to be moving his funds due to the recent rise in crypto prices.

The Blockchain Bandit got their name after successfully stealing ETH from thousands of holders with weak private keys using Ethercombing. The hacker's attempt emptied more than 10,000 wallets from holders worldwide.

In 2019, the [Blockchain Bandit gained 45,000 ETH](https://cointelegraph.com/news/blockchain-bandit-has-stolen-45-000-eth-by-guessing-weak-private-keys-report-claims) by simply guessing the weak private keys. The now infamous thief heavily relied on the process of being able to guess an address's public key if you are aware of the private key. The hacker seems to have come up with an automated system that helped him scan and identify these weak keys. He exploited this to no extent and was able to steal millions in funds from thousands of crypto holders.

![hacked.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/hacked_008b7d1142.png)
 
Chainanalysis came up with a diagram to portray the shifting of funds. However, they did not mention any specific targets. Chainanalysis advises crypto holders to use well-known and reliable wallets to do transactions and use hardware wallets to move large amounts of funds to avoid getting their crypto hacked.

## Why is the hacker on the move?

After over half a decade of inactivity, the hacker's wallet was seen to be active as he was moving the crypto hacked previously. Crypto experts believe this sudden activity and the moving of funds is due to the recent hike in crypto prices.

The hacker is suspected of moving millions in stolen funds to a more secure location. There have been no updates since his last activity, but his moves are being heavily monitored.

The news comes only days after the [FTX reported more than £342m in stolen funds through hacking](/news/article/ftx-us-reports-415-million-hacked).


red image of hacker stealing crypto with bitcoins falling

Crypto Hacked: Blockchain Bandit Active Again

According to a South Korean intelligence agency statement, state-backed North Korea hackers have stolen an estimated $1.2 billion in crypto assets over the last five years.

Analysts and experts have confirmed that North Korea is supporting a number of fraudulent activities and cybercrimes in order to gain access to foreign currency to help its failing economy, which has been harmed by [UN sanctions](https://www.armscontrol.org/factsheets/UN-Security-Council-Resolutions-on-North-Korea) and the aftereffects of COVID-19.

South Korea's National Intelligence Service confirmed that North Korean hackers are among the best at stealing crypto assets, owing to the country's focus on cybercrime as an alternative way to aid its failing economy since the height of United Nations economic sanctions in 2017.

In 2017, the United Nations imposed harsh sanctions on North Korean exports such as textiles and coal. The UN, along with its member states, repatriates North Korean workers abroad. The country's economy was unable to withstand harsh sanctions and the aftermath of the COVID pandemic.

According to South Korea's National Intelligence Service, North Korea crypto hackers are responsible for hacking $1.2 billion in crypto assets in the last five years, with more than $626 million in 2022 alone. It was also confirmed that approximately $78 million of the stolen funds originated in [South Korea](/news/article/south-korea-crypto).

## More attacks expected

According to intelligence obtained by the South Korean Government, North Korean hackers will most likely undertake additional cyberattacks this year to gain access to South Korean technologies and private information on national security and weaponry.

Official state diplomats from South Korea, the United States, and Japan joined forces earlier this month to intensify efforts to combat the cybercrime carried out by North Korea. 

According to UN experts, the country will step up its efforts to steal hundreds of millions of dollars from crypto platforms and other financial institutions.

Despite the fact that North Korea's economic situation remains dire, the government conducted a record number of missile tests in 2022. Experts and analysts believe it has a way to gain leverage and improve its weaponry to negotiate with world powers.


red image of hacker with cryptocurrency and North Korean statues falling

North Korea Crypto Hacks Worth $1.2 Billion 

If it sounds like a pyramid scheme, you are right. If it sounds like artificial inflation, you are right. Pump and dump schemes made headlines before [Bitcoin](/coins/btc) was created. Recently, several news stories have pointed to many scams attempting to manipulate cryptocurrency prices through this scheme.

While digital currencies are relatively new, they are prone to old scams. The novel blockchain technology that backs cryptocurrencies can be used to create an artificial financial mania. Like the popular [Tulip mania](https://en.wikipedia.org/wiki/Tulip_mania) that occurred in the Dutch Republic between 1634 and 1637, what this scheme banks on is the ability to create an illusory surge of public interest in a particular asset such that easy and massive wealth seems to be within reach of the average investor. The cryptocurrency's price soars past its fundamental value, and everyone is buying to avoid missing out.

Eventually, an inflection point is reached once the price is fully "pumped." The people behind the scam begin to sell the cryptocurrency for a higher price. Dumping the coin and pocketing the profit while innocent investors watch the price plummet. 

## What are pump and dump schemes?

Pump and dump schemes, which fraudulently manipulate prices by disseminating false information, have existed in economic contexts since at least the 1700s. With the advent of new technology related to cryptocurrency trading, the issue has a wider scope.

This scam takes advantage of individual investors while earning huge profits for con artists. They may include social media influencers who are compensated for encouraging people to purchase a particular digital coin in order to increase its value.

![pd.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/pd_3be9ce84f2.png)
 
### *The three phases of a pump and dump operation*

This type of scam targets new and small-cap coins. These types of coins do not require a lot of money to manipulate, so they are easy picks. Rarely will you hear of a Bitcoin pump because it will require a lot of money. Many small-cap coins do not have any real use cases. The scammers simply create the illusion of importance by roping in celebrities and industry thought leaders to make the cryptocurrency look more interesting.

The number of pump and dump scams has steadily increased. In a 2018 [report](https://www.wsj.com/graphics/cryptocurrency-schemes-generate-big-coin/?mod=article_inline?) by the Wall Street Journal, crypto pump and dump schemes accounted for $825 million in trading activity in six months, causing hundreds of millions of dollars in losses. In that year, from January to July, there were 125 pump-and-dump scams that manipulated the price of 121 different coins.

According to [Chainalysis data](https://www.coindesk.com/markets/2021/12/17/defi-rug-pull-scams-pulled-in-28b-this-year-chainalysis/), they made up 1% of total illicit revenue in 2020. In 2021, they accounted for a whopping 37%.

## How does this scam operate? 

A pump and dump scheme operates on two levels:

1.	Insiders of the token promote and stir the price while they sell slowly.

2.	Scammers target a particular token and rally the token community to buy, triggering a soar in price. Whoever buys last is left with an empty bag.

Whichever one operates, there's a team of tech-enabled, motivated, and organized players at the centre. This team often includes internal investors who provide funding to buy the token and raise demand.

While the investors fund the artificial demand for the token, another team fuels the disinformation campaign, trumpeting non-existent use cases or completely false details about the token. With social media and instant messaging apps, marketing the good word about the token is easier. Platforms like Telegram, Twitter, Facebook, and YouTube have become breeding grounds for these marketers.

These marketers use famous people to help sell the tokens because they want to get people interested. Fear of missing out (FOMO) is what makes this scam work, so outside investors and traders rush to buy the token. The price crashes as investors realize too late that they invested in a scam.

## How to spot crypto pump and dump 

Generally, the first step to spot a bad investment is to do your own research. Look up the token, read the white paper, check the exchanges on which it is listed, the order book, and the token timeline. If it's too good to be true and has no clear purpose or utility, it's most likely a scam.

Second, an investor should understand that scams are modelled by psychological tricks. It's important to understand if FOMO is contributing to your decision on whether to invest or not. Always be self-aware. Are you investing because you don't want to miss out? Well, you may end up holding an empty bag.

Last year, some anonymous developers launched the SQUID token, riding on the success of the Netflix hit show Squid Game. Before the pump, SQUID was worth about two cents. Soon after the marketing ploy hit, the coin went from $0.01 to $38 within a week. The perpetrators rode on the FOMO and [made off with $12 million](https://www.yahoo.com/video/biggest-pump-dump-scheme-ever-123048530.html). Invest in various tokens. Only invest your money after you have carefully evaluated a project. If it crashes, take your money out while there's still time.

Another psychological trick these fraudsters use to ensnare you is the idea that everyone in a pump group is an insider. The truth is, as [Coffeezilla puts it](https://www.newyorker.com/news/letter-from-the-southwest/coffeezilla-the-youtuber-exposing-crypto-scams), “there is an insider within an insider club in all of these pump and dumps."
"Only true insiders are aware of the pump and dump signals before others."

If you're not a founding member of the token community, your investment will only amount to zero.
Why is a fashion influencer suddenly talking about some cryptocurrency? Your answer: it's most likely a scam. Influencers and celebrities are a major part of legitimizing a scam token. Their reputation (though paid for) is staked as a reason to buy.

A sudden spike in the price of a relatively unknown coin points to the "pump phase" of the coin. You can see on the price chart a sharp price hike. This is a red flag.

## Bottom line

The unregulated crypto industry opens the door for fraudulent players in the market. The high and fast profits from these pump and dump schemes entice scammers to take advantage of unsuspecting investors.

A vigilant investor knows to always be on the lookout for these scam schemes. You don't invest more than you're willing to lose while spreading your investment across different tokens. Only invest your money after you have carefully evaluated a project. If it crashes, take your money out while there's still time.


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