Binance Sentry Releases a Report Shedding Light on Cryptocurrency Scams

News / 02.07.2020

The leading cryptocurrency exchange Binance released a report explaining the way scams targeting cryptocurrency investors attempt to achieve credibility.

The report, released on June 30, noted that the observations are based on an examination of reports of fraudulent investment schemes which promises quick or exponential returns on cryptocurrency investments.

Binance Sentry which is an internal risk intelligence unit structured within Binance’s security team examined the reports, thereby coming up with its observations. However, the frauds go beyond cryptocurrency but likewise include forex, binary options and contracts for difference (CFDs). The report comes following a Bitcoin (BTC) scam which focused on individuals living in Winnipeg, Canada, a few days ago.

Binance Sentry observed that the operations of these schemes sometimes come under the facade of different, seemingly unrelated brands, and it is not uncommon for dozens of projects to be branches of the same malicious operation.

Some brands may focus on cryptocurrency while others focus on forex or CFDs. Some regulators have warned people of such schemes, including the Financial Conduct Authority (FCA) in the UK and Commissione Nazionale per le Società e la Borsa (CONSOB) in Italy, which reveal the way an entity or group of bad actors can use a variety of names to do business.

Sometimes, these fraudulent individuals come up with false ‘consumer organizations’ to obtain more funds from their victims after they are suspected to be scammers and try to report it. Some come up with projects which fabricate regulators and governmental agencies like corporate registers towards earning investors’ trust.

In recent times, Binance Sentry was able to examine multiple networks, observing the use of related ancillary services, including marketing outfits, law firms, human resources teams, and project rating sites, towards the cultivation of credibility and further supporting these networks’ activities, many ostensibly doubling as “legitimate” operations.

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A creative writer in the field of content writing for the past 7 years. Iulian is passionate about his work and his interest in areas such as technology, travel, sports, literature and gastronomy have aided him to the research quality in articles that reflect these themes. Recently, he discovered the Bitcoin and the blockchain technology and he’s a big fan now.